Detroit Real Estate

Yes you heard me right, My clients want to buy - but it is smart not to buy this Northville home.  I left an appointment tonight after looking at a Northville home.  The Northville home was listed at  $380,000.  It was a beautiful Northville home.  The home:

• was clean
• was newer (built after 1999)
• was on a nice corner lot with plenty of space
• had a finished basement
• in a quiet subdivision

Yes this home was worth it.  It was a very nice home.  In other parts of Northville the home would get the money.  But in this Northville subdivision it would not appraise.  There were no homes sold in the subdivision in the last six months.  But the problem is that the last comp in the subdivision was only $310,000.  There are no other comparables in the square mile that would support the $380,000.

So yes you are hearing me right.  I told my clients not to put in a bid.  There were two bids over $350,000.  In this banking environment I don't think the house will appraise over $320,000.  So should I have my clients waste their money on inspection fees, and appraisal fees only to find out that the bank won't give them a loan. 

Yes they want to buy - but it is smart to not to buy this Northville home.  It is smart not to pay the top dollar in a subdivision.  The best buy is always the smallest house in a subdivision with larger homes.  It is also smart to buy your home at the lower end of the range that homes are selling in.  Don't buy at the high limit.  Too many people are crying the blues that did this back in 2003 and 2004.

Be a smart buyer!  

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My quote of the day is:

You're not obligated to win. You're obligated to keep trying to do the best you can every day. Marian Wright Edelman