Detroit Real Estate

I was going over what a Novi condo would sell for in this market with a client.   Selling a Novi home or a Novi condo isn't tough, but home values have fallen so far.  Many home sellers are upside down.  If you have bought since 2003 you may be underwater on your mortage.  Here is what I sometime have to tell them.

Here are the three Novi condos that sold in your complex in the last 6 months. They took an average of 62 days to sell.

All three of them sold at $124,000 or $125,000. So the price you most likely sell at is $125,000 BUT. Here is the other part of it. Most buyers need closing costs, so you probably would need to give the buyer help with closing costs in order to sell the condo.

Here is how they break down the last 3 sales
sold 124,900 minus 6000 in sellers paid closing costs
sold 124,900 minus 6000 in sellers paid closing costs
sold 125,000 minus 5267 in sellers paid closing costs

So all of the sellers really only netted about $119,000 after paying the buyers $6000 closing costs.

So if you sold the condo at $125,000 (which you most likely would) your costs would be.
$706.10 for an owners title insurance policy
1066.40 for Michigan state transfer taxes
$6000 for sellers concessions
+ commission for buyer and selling agent
So basically it would be about $15,000 in costs.

If you owe 120,000 you are going to need to bring about $10,000 to the table to close this deal.

The wish is that you could sell it for more but in this market it is unlikely. With those three sales at $125,000 it would be hard to get the bank to appraise it at $130,000. Even if you sold it higher to somebody the bank wouldn't give a mortgage of $130,000 or higher most likely.

This gives you an idea of how we sometimes have to bring clients down to earth on what their Novi Condo is worth.  So many times Novi home sellers have no clue what their property is worth.  So many times they think their home is the best and they can get over market value when the home is close in ammenities, size, and condition of the other homes that have sold.

Feel free to call me if you are looking to sell your Novi condo or home.  We can go over what you owe and what the homes and condos are selling for.  We can go over what you need to do to get ready to sell.

Russ Ravary  your Metro Detroit real estate agent serving Oakland and Wayne County