Detroit Real Estate

If you are from the Metro Detroit area you are seeing less FSBOS on the market and less FSBOs selling.  Why are do you think that is?

Well houses were taking longer to sell and houses that are over priced are not selling for a very long time.  In the 1990s and early 2000s when the market was rising you could over price your house.  Eventually there would be somebody that would buy it and it would appraise.

Back in that time the banks accepted about any purchase price on the appraisal.  But now that has changed even if the home buyer wants your house it can not be priced higher than the market ( to the point that the bank shoots down the appraisal).   Number one, no appraiser is going to do an inflated appraisal anymore.  They are going to appraise your house according to the market.  So if your Metro Detroit FSBO is over priced and you have a buyer for the higher price.  It most likely won't appraise anyway.  So it can't be sold at the over market price because the buyer can't get a mortgage.  They would only be able to pay cash for your FSBO.

But that isn't going to happen very often right now because Michigan home buyers still want the bargain.  They are still looking for the deal.  It's funny to hear my clients tell me that they had called a Metro Detroit FSBO  and hearing them say that the people were "out of their mind"

But I still think it is good to sell your house as a FSBO if:

• you have the time to do it
• have the knowledge of the selling process
• have an attorney to look over the  contract and other sales documents
• have the money to advertise it
• you can get it listed on MLS system
• have the time to get the people inside of the home
• and have the ability to answer the calls between 9-7 when they come in.  ( I am always amazed when I call them and don't get a call back until a day or two later.

Just my thoughts on what is happening in the metro Detroit real estate market

                                                                                                         Russ 

Livonia real estate MI