Detroit Real Estate

Right now I am hearing the same tall tales of extraordinary deal all over the Metro Detroit real estate market.  Sure there are great deals out there, but.  I heard that there was a house that sold in Francavilla a Livonia subdivision for $80,000.  Or my friend bought a house for $30,000 in Farmington Hills. 

The first story is a blatant lie.  I checked all the sold sales there are no homes that sold for less than $180,000.  The second story is true but the Farmington home had major water damage.  There was mold in the house.  The floors were warped.  The house had to have all the drywall removed down to the studs.  It was like rebuilding the house.  The house had to be gutted.

The mold had to be re mediated.  The Farmington Hills home buyers thought they could redo the house a certain way, but the city won't let them do what they planned.  So now they have a house that is too small for them and is requiring major work.

So forget about all the stories and be realistic.  If many of the homes are price in the $100,000 range and there is one nice home listed for $80,000 don't wait around and think about it.  It will be gone.

If there is a 3000 square foot house that has been on the market 5 months and is listed for $80,000 it most likely has major renovation work to be done.  You may not be able to get a mortgage on it.  Don't expect to see another 3000 square foot home that is in good shape for that price.  That home is priced that low because it is going to take a hundred thousand dollars to fix.

If you are only finding junky houses or houses that don't meet your requirements in that $70 - $80,000 range then maybe you should either lower your requirements or look in a higher price range (if you can afford too).

Your Michigan Realtor can't magically pull up more houses, or can't magically get a super cheap super nice house for you just because you want it.  You have to be realistic and adjust your expectations to fit the Metro Detroit real estate market.  You have to realize that instead of buying that $80,000 house...you may have to spend $120,000.  But that house is still a great deal, that house probably once sold for over $200,000.  Homes are cheap.  Many times you can't build the house for what they are selling for.

I had one lady that was looking at Southfield homes that got upset at me.  They wanted a nice brick ranch over 1200 square foot for around $80,000.  We found one but the other 15 we looked at needed major work.  She was upset at me.  Hey I can't magically produce a house for sale.  I am sending you all the houses that are listed on the MLS.  What is listed for sale right now you have access too. I said what about the one nice one.  She told me she wanted to be able to choose between 2 or 3.  Unfortunately sometimes you can't do that.

Sometimes that one bargain is the only home that will come up for sale in the next month.  It may be the best deal for six months or who knows next month may have 3 homes to chose from but none of use know that.  You can only buy out of the pool of homes that are for sale.

So don't be frustrated, adjust your expectations and you will be glad you did.

Russ Ravary your Metro Detroit Real estate agent

Search Farmington Hills foreclosures and other Metro Detroit foreclosures  

Toxic Mold 

About this time every year we see lots of Metro Detroit foreclosed homes with mold in them.   This house was a Canton Twp home.   Why we see so many in the spring is because the water pipes burst in the house.  What happens is the former homeowners up and leave the house ( the owners that have been foreclosed on) and shut the utilities off.  They don't want to heat the house and they most likely think it is the banks fault they lost the house.  So they don't care.  So when there is no heat to keep the pipes warm, after a day or two in the Michigan winter the pipes burst.  Many times the banks  don't even know the people have moved out.

Sometimes the banks can't even take possession of the house because they think it is still occupied, and they have no legal right to the house yet.   So what happens is the pipes burst, and the water runs and runs. I have seen a $4500 water bill.  Can you imagine how long the water has run for that to happen?  Until the Metro Detroit foreclosure becomes the banks property the water runs.  Finally the bank will have a Metro Detroit Realtor secures the house.  Thats when they find out the water issues.

But here is what has happened to the house by then:

• boards become saturated
• floors warp and rise
• the basement becomes flooded
• water is absorbed up the drywall and into the studs behind the walls
• the water runs from one floor down into the next floor by water way it can
• carpeting gets soaked
• paint peels
• the mold grows! 

                           Sometimes this damage doesn't start until the house is heated or the weather gets warmer.  The house has become a huge petri dish waiting for all the mold to grow.  The combination of warmth and the wetness provides the ideal conditions for mold to grow.

My opinion of these houses... are to run the other way.  Unless you are a professional there are too many problems for an average Metro Detroit home buyer to deal with.   With so many people with asthma problems you don't want the issues that come with a water soaked house.  The repairs are a big enough problem.  But it is the hidden issues of the mold behind the walls and floors to become an issue in the future.

Remember you also are going to have to fix the plumbing system.  There will be holes in the pipes.  Many times the plumber has to cut holes in the drywall to find them and repair the broken lines.

Many times it is going to cost more than the $8000 first time home buyer tax credit you can get from Uncle Sam.  Too, too many issues.  So run, and forget about how cheap it is.

For more Metro Detroit home buyer tips and Livonia real estate information visit any of my websites

Russ Ravary your Metro Detroit real estate agent

Search Metro Detroit real estate and get the latest home listings email right to you.

Are you upset with a Northville real estate agent because they won't show you a house without a pre-approval letter?

Here may be the real estate agent's reasons why they won't show you a house without a pre-approval letter

1. Northville Home sellers and listing agents won't accept a purchase offer without a mortgage pre-approval letter.  Metro Detroit Home sellers want to know that the buyer can buy a house and that it isn't a dream.  I used to do mortgages and I can't tell you how many people think they can buy a house.  But there is no way they would be approved for a mortgage by lenders.  So if you don't have a pre-approval letter then you can't get your purchase offer accepted.  It won't even be looked at.  They won't even accept it if there are no other offers.
2. Without a pre-approval letter you are just a "looker".  If you are not serious enough to get a pre-approval letter then you aren't a serious buyer in the eyes of many real estate agents.  So why should they waste their time and gas to show you a house you are not serious about.  It doesn't take much time to get a pre-approval letter.  So many real estate agents feel if you won't take 20 minutes to get a pre-approval letter you are not serious about buying.  Agents want serious buyers.  They have seen enough houses they don't need to see another one with somebody that isn't ready to buy.
3. The line "I'm serious" or "I'm going to buy" and it won't be with a real estate agent that won't show me a house with out a pre-approval letter.  Unfortunately as most experienced Metro Detroit real estate agents and mortgage people will tell you.... they want serious buyers that can prove it.  In today's market many people can't get approved because of the tougher bank rules.  Even though you think you can or that your were approved a year or two ago.  It's a new world of banking and mortgage lending.
4. Real estate agents are busy like everybody else in life.  They only have so much time in a day.  Do they spend it with a serious buyer who has a pre-approval letter or a "looker".  They would rather spend time with their family or enjoying time off than a spend time with a non-serious buyer.
5. You are going to be upset if you got a house offer accepted (which it would never get that far in Metro Detroit) and then found out you couldn't buy.  You will most likely be mad at everybody but the person who didn't get pre-approved.

So my advice to anybody thinking of buying a home..... get your financial affairs in order and see a mortgage lender to get a pre-approval letter.  It will make the whole buying process going easier once you are pre-approved.  Plus you should have figured out what you want in a monthly payment before you go to the mortgage lender.  It will only take a few minutes to get pre-approved and you will be ready to get the home of your dreams. 

Whether you are a Livonia real estate home buyer, a Northville home buyer, or a Farmington Hills home first time buyer get yourself a pre-approval letter.

Russ Ravary your Metro Detroit real estate agent

helping Oakland and Wayne County real estate buyers and sellers (Michigan)

My Quote of the day is:

"Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great."

Mark Twain

Well another month has gone by and now there is only 5 months to take advantage of the 2009 first time home buyers tax credit.  When in American history in the last century has the government given away 10% of the Metro Detroit home purchase price (up to $8000) back to the seller?

Now is a great time to buy.  Banks are still pricing Metro Detroit foreclosures very cheaply.  I just helped a home buyer find a 1000 square foot Westland bungalow for $45,000.  I helped another first time home buyer find a Farmington colonial for under a $95 a square foot that was in very good condition.  There are many good Metro Detroit home deals to be found.

So if you have been thinking of buying metro Detroit real estate and need a down payment it might pay to ask a relative for a loan until you get the tax credit back next year.  $8000 is a big gift to pass up.

If you need more information about this program give me a call or email me at yesmyrealtor@gmail.com

Search Metro Detroit foreclosures and get a personalized list of homes emailed to you weekly.

Russ Ravary your Metro Detroit real estate specialist

Everybody wonders what they should be bidding on a house.   One of the best ways to determine what the house is worth is pull all the recent sold homes.  First in the neighborhood, then the city or township on then close to the subject home.  You want homes that are similar in style, size, and sold within the last 6 months.  Anything sold older than 6 months in this rough economic market doesn't matter.

I am going to use for an example a house I looked at in Milford MI.  It was about 1700 square foot colonial.  And the asking list price was about $72- $73 a square foot.

I have highlighted the homes that I think are the closest as a comparable.  Many times you can't tell what the condition of the inside of the homes were unless you read the  remarks section.  Then you can tell if it had updates or needed work.

 When I pulled recent sold homes in the square mile of the house we looked at there were NO HOMES THAT SOLD IN THE LAST SIX MONTHS WITHIN A SQUARE MILE OF THE HOUSE.  Which makes it tougher to determine what the house should be worth.  Then I moved over a square mile.

 Then I went further away within 2 square miles around the property that were colonials or cape cods.  Still in the same city.  This is what I found. 

But these are not good comparisions either.  They are too largeof a home or too new.  But does give a range of price per square foot.

Then I pulled every home in the same area but included ranches and bungalows.  Which is not what you would normally do but since there are no comparisions you want to look at everything that sold in the last 6 months.  Ranches normally sell for more per square foot than a colonial.  But again this give a range of price per square foot 

 Then I pulled for the whole township.  2 story homes that sold in the last six months within 400 square foot above or below. 

 Then I pulled the adjoining town within 2 miles.

So our home that we looked at falls in the price per square foot range.  So then you have to look at how your homes condition compares to the sold homes.  That takes a little more time reading over the remarks sections.  But then you have a good gauge of what you should bid.

For more Wayne County and Livonia real estate home buyer tips

or more Metro Detroit real estate home buyer tips click on the highlighted brown wording 

I hope this helpd