So if you are thinking of buying a Metro Detroit home whether it is in Canton, Plymouth or Novi. Or in any state or city for the matter you need to know the facts.
The most important thing to know is NOT WHAT THE SELLER PAID FOR THE HOME (who cares what they may make or might lose). The most important factor is what comparable homes are selling for.
SMART MICHIGAN HOME BUYER TIPS
Here are the guidelines to find comparable homes:
- Must be recent sold homes. Within the last 6 months especially in this falling home price market. Just because a home sold for $50,000 more 2 years ago doesn't mean diddly squat! It is what houses are selling for now that means something to you as a Metro Detroit home buyer
- Must be close by. Usually you like to compare the home you are buying to homes in the same subdivision. But sometimes that is impossible. So you have to go outside of the subdivision. Then you like to stay within a square mile without crossing over major roads, freeways, or train tracks. This is how appraisers do it and how the banks review appraisals. You should do it that way too. Again just because a 3200 square foot house sold for $500,000 on the other side of town (2 miles away) doesn't mean much. You may have had a 2900 square foot house in your sub that sold for $290,000.
- Must be like your home. You can't compare a ranch to a colonial. Or a tri-level to a Bungalow. Like to like.
- Features and condition should be comparable or adjust for the differences. Comparing a 3 to 4 bedroom is not uncommon. A poor condition house to an excellent house isn't hard. Figure out how much it would cost to bring the home up to excellent then deduct from the list price.
Once you know what comparable homes have sold for then you can determine what the house you want to buy is worth in today's market and in today's conditions.
Smart home buyersand investors ask for comparables. Good real estate agents will always provide you with them. But be pro-active ask you real estate agent for the public records, the comparables, the sellers disclosures. Get all the information you need to make a sound decision when buying your new Michigan home. You won't regret it.
For more home buyer tips or home seller tips go to my websites http://www.DetroitMichiganRealEstateHomes.com You can search over 68000 Michigan homes for sale free on either site.
__________________________________________________________
My Month of April quote:
"Sometimes the only way to get to the far shore is to lose sight of the shore you just left"
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
