Detroit Real Estate

Today I had two different clients talking about houses that were unbuyable.  Why or what do I mean by un-buyable?

The first example was a newer Redford home.  The seller owed about $140,000 on the home.  They had it listed at $150,000.  They had to sell it at list price.  But the problem was is that it was only worth $100,000.  All the other homes in the area in the last six months sold for right around or less than $100,000.   My clients needed to get a mortgage.  So even though my clients would agree to pay $150,000 or $140,000 the bank would not let them buy it.  The house would only appraise at $100,000, so the bank would only mortgage $96,500 (FHA mortgage)  So my clients would have to bring a $40,000 +  down payment.  They didn't have that kind of money.

YOU CAN ONLY PAY WHAT THE BANK WILL APPRAISE IT FOR UNLESS YOU WANT TO OVER PAY FOR THE HOUSE, AND BRING EXTRA CASH TO THE TABLE.

The other house was actually a lease house that also was for sale.  The house was a Lake front home on Duck Lake in Highland Township.  It was listed at about $400,000 and leasing for $2200.  The max my client could afford to pay was $1800 a month in rent.  She wanted to know if they would take that much.  The house had been listed since last May.

It is most likely that the seller can't afford to take that little because they need to cover the mortgage payment.  So if they need that money they aren't going to take that offer because they would have to pay money each month to cover the mortgage payment.

The bottom line is that some people just don't have the money to cover the shortage or cover the loss for what the house is really worth.  I wouldn't bring $50,000 to sell a house for a loss and I wouldn't lease the house for $1800 and pay $400 a month out of my pocket to cover the mortgage.  I would stay in the house and not sell or lease it.  I just couldn't financially afford it.  So it really can't be sold unless a person is willing to pay over current market value and is willing to pay cash for the house.  Because a bank is not going to let you overpay for a home. 

P>S> I also would be telling you to walk away and look for a different house.

Search Metro Detroit home listings and foreclosures