What do I bid on a house?

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.

Homes that sold within last 6 month (2 Mile)

ADDRESS	LIST PRICE	SALE PRICE	DOM	SP PER SQFT	SQUARE FOOTAGE	YEAR BUILT
358 GLENEAGLES	169000	177500	35	63.2798	2805	1996
173 GAILES CT	234900	221450	51	75.0677	2950	2003
661 EDINBURGH CIR	249900	229500	233	74.0322	3100	2005
1497 GLENEAGLES	294500	297000	13	110	2700	1996
1798 GLENEAGLES	329000	310000	133	93.9678	3299	2003
1449 GLENEAGLES	599900	560000	317	119.9657	4668	1997

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

Ranches and bungalows within 2 square miles

ADDRESS	LIST PRICE	SALE PRICE	DOM	SP PER SQFT	SQUARE FOOTAGE	YEAR BUILT
260 ROWE RD	74900	42500	191	46.5498	913	1964
435 W LIVINGSTON RD	49900	45500	133	44.2176	1029	1948
880 OAKGROVE	129900	117000	123	104.9327	1115	1977
420 LONE TREE RD	129900	125000	90	96.1538	1300	1991
312 LONE TREE RD	145900	143000	61	96.2314	1486	1992

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

2 story homes

ADDRESS	LIST PRICE	SALE PRICE	DOM	SP PER SQFT	SQUARE FOOTAGE	YEAR BUILT
232 BISHOP	34900	30370	99	20.4511	1485	1880
952 WHITE HOUSE DR	143900	137000	120	80.4462	1703	1977
3591 RAMADA DR	169900	165000	253	83.2492	1982	1978
3251 JACKSON BLVD	169300	169000	46	77.8801	2170	1960
2326 ELKRIDGE CIR	179900	179900	100	82.1836	2189	1997
2555 MIDDLE RD	199900	181000	67	89.1625	2030	1988

Then I pulled the adjoining town within 2 miles.

ADDRESS	LIST PRICE	SALE PRICE	DOM	SP PER SQFT	SQUARE FOOTAGE	YEAR BUILT
536 GENERAL MOTORS RD	82000	84500	115	76.5398	1104	1920
1415 GENERAL MOTORS RD	89500	92357	15	57.5074	1606	1961
842 PANORAMA DR	144900	125000	91	74.449	1679	1957
863 BARBERRY DR	134900	125500	123	63.1605	1987	1991
805 PANORAMA DR	129900	130000	125	74.8416	1737	1959
610 CAROLINE	152900	152900	52	110.3971	1385	1901

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