Detroit Real Estate

Unfortunately when you tell the truth you sometimes lose a client.   The client was looking at a Metro Detroit lakefront foreclosures.  It was priced far below market value.  I had not been in the Waterford home yet, but the home was on an bigger all sports lake.  The prospective client asked me what I thought the house would go for and this is what I replied.

" I believe the home will go over list.  I haven't seen the lakefront home and I don't know the condition.   From the pictures and the description it sounds very nice.  BUT.... It is a steal at this price, so it will boil down to how many people are willing to bid it realistically and how bad they want it.  It is about $170,000 below what it should go for in this market.

I have seen cases where Metro Detroit foreclosures have gone $65,000 to $100,000 over the list price.  If a lakefront home is worth $410,000 and you had to pay $335,000 to get it (And it was listed at $275,000).  It is still a great deal.  It is hard for some lakefront home buyers to wrap their head around that concept.  Unfortunately I have had some lake front home buyers that think they should bid below the list price because it is bank owned.   It usually takes those buyers about 3 bids on different homes before they get it and bid aggressively on a undervalued home.   I have had some lake front home buyers never get a home because they are always trying to "steal". 

Unfortunately for them they missed some great deals and could be living on a lake already instead of still looking for a Metro Detroit lakefront home.

If you want to go look at this house we can.  But I think it will go relatively quickly at that list price.  If the bank gets multiple offers they will ask for "highest and best".  That gives everybody one shot to give their highest offer.  No re dos after that."

As a Realtor we see a lot of homes in a day and we see what they sell for.  Sure we are off once in a while but we usually know our prices and our market.  I based my response on my experience of what goes on in the local lake front market.   Well I never heard back from the client after that email.  I'm sure they thought I was crazy and went with somebody else.  

But if you want to buy lake front foreclosures remember you have to look at what the house is really worth.  Just because the list price is low, doesn't mean the home will sell for that price.

I hope this home buying tip helps you get the home you want.

                                                          ~ Russ Ravary~

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Love is missing someone whenever you're apart,
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                                                                             Kay Knudsen