[greenseeker]

looking at homes in the country w/in 30 min of ann arbor (but not AA proper), how much below asking are houses going for? anyone know? or are the prices so depreciated that that's as low as they're gonna be for a while? opinions?

[A2Mich]

Right now is definitely a buyer's market. I have seen the prices on new construction fall about 20% in the last year. Existing homes can be a steal, if you can find a seller needing to sell fast. Pfizer moving jobs out of here made the housing market better for buyers, but with work being harder to come by, there are fewer and fewer buyers, and with lending criteria tightened recently, the number of potential buyers is even less. I have talked with people whose homes have been on the market well over a year. These people originally purchased at higher prices than then current market, and of course, are wanting to make some money on their sales (understandable), so, the houses sit on the market. In Dexter, there are plenty of vacant homes left by transferred Pfizer employees. Those people may be willing to take a low offer just to get out from the mortgage payments.

[YAZ]

Try the Brighton area.

Nice town, I lived there for 20 years.

[Dr.Jim]

Well,....as someone who has there home on the market I suggest this to you:

There is a new breed of home buyer out there, and thanks to the media, they feel entitled to epic discounts on homes that are already discounted.

We have dropped the price of our home 'in accordance' with market values and conditions, going from 340K a year ago, now to 279K.
We actually get buyers who 'think' they should get the home for 215K. They think this because they don't understand that alot of homes are priced FOR the down market already. Many homes are overpriced,....but not all.

I suggest when you are looking at homes, find out the homes value when it was bought, then apply the current market reductions, comp prices...etc...and that should tell you what to offer. Please do not assume that the price is high until you do some research.

Best of look, lots of deals to be had.

[A2Mich]

Originally Posted by Dr.Jim

Well,....as someone who has there home on the market I suggest this to you:

There is a new breed of home buyer out there, and thanks to the media, they feel entitled to epic discounts on homes that are already discounted.

We have dropped the price of our home 'in accordance' with market values and conditions, going from 340K a year ago, now to 279K.
We actually get buyers who 'think' they should get the home for 215K. They think this because they don't understand that alot of homes are priced FOR the down market already. Many homes are overpriced,....but not all.

I suggest when you are looking at homes, find out the homes value when it was bought, then apply the current market reductions, comp prices...etc...and that should tell you what to offer. Please do not assume that the price is high until you do some research.

Best of look, lots of deals to be had.

That's true to a point, but buyers do not feel "entitled " to epic discounts. They are paying what the market is bearing at the time. Many homeowners think that their home will always appreciate...not so. Part of the issue is the high number of foreclosures as well as people who had to relocate due to job loss or job transfer. Many people have been sitting on these homes for months and sometimes over a year, still paying a mortgage that they may not be able to afford, as they may have another mortgage or rent payment to make after they had moved. I don't know anything about your home in particular, but you've had it on the market for a year now. Let's say that your neighbor 5 doors down has the identical home, with a similar amount of upgrades and improvements. His job was transferred out of state, home has been on the market for the same time as yours. He is motivated to sell his home because he can't afford to make a mortgage payment on a home he doesn't occupy. His house was just reduced to $229K and made the sale. Why would I buy your house for $279,000 when the comps are selling for $40k less? Sure, nobody wants to lose money on a home sale, but it also comes down to how motivated or desperate are the sellers? You can keep your house on the market for $279k for another year or so and not have a serious offer, because other comparable properties in your area are selling for much less. Sometimes it comes down to a matter of cutting losses and selling for a lower figure. Also, keep in mind that some people buy homes, and expect to make $100K profit at time of resale....real estate is certainly not the "sure-fire" money-maker it was in the past.

[MittenDweller82]

Originally Posted by greenseeker

looking at homes in the country w/in 30 min of ann arbor (but not AA proper), how much below asking are houses going for? anyone know? or are the prices so depreciated that that's as low as they're gonna be for a while? opinions?

There are many options west of A2 that can offer a excellent lifestyle and yet still be close (15 min or less) to the square. Dexter, Pickney, and areas in between are often overlooked. Not only are many homes for sale, but unbeatable deals with the amounts of property included. If you haven't, look along Dexter-Ann Arbor rd, and points north. Good Luck....

[Coldjensens]

Tecumseh!

Chelsea.

Dexter

Saline

Clinton

Plymouth (possibly the best option)

Houses are massively depreciated everywhere. You can only guess how much below market they will sell. No on eknows where to price their homes. Thus asking prices are all ove the place. Some houses 50% of asking. Others right at or mabybe 10% off asking. It all depends on how realistic the initial pricking is and how movitivate the sellers are. Some sellers say, "I wil nto take less than $X - the hous ecan sit on the market for ten years and I still will not go below that nnumber" Other sellers have already moved away and/or are about to lose the house to the bank (others already have lost the house).

[Dr.Jim]

A2 - I agree with you completely. The scenario you describe is one of the primary reasons prices are dropping.
Again, I am referring to a 'new breed' of buyers that do not understand this. "They" will go into the neighborhood in your scenario, see the house for 229K, and offer 170K.
THAT is what I am referring to,...the buyers who understand the market, see the comps at 270K and then see the houses in that area selling for 250-270K will buy the house for 229K at listing or slightly under listing price, as it should be.
The 'new buyers'....simply see a price, regardless of how low, and think since its a buyers market and obviously "no one" buys near listing price, they should offer some ridiculous amount.

So I am not referring to 'buyers' in general,....but to a new type of buyer that does not normally exist in this quantity when in a normal housing market.

[A2Mich]

Dr Jim.....OK. That makes more sense now that you clarified it a bit more. I think you're right in that many buyers are wanting to lowball any home price, as you've stated, and think that's the way things work. Unfortunately, with home sales the way they have been, these buyers are getting what they want in many instances. As I said, many homes have been on the market for a long time--vacant, with the owner now struggling to make 2 mortgage payments, so these buyers are in a good position to offer lowball prices on these homes, and have their offers accepted. They may be thinking this strategy will work in every market, but it doesn't. These buyers need to find the homes of, as much as I hate to say this, desperate sellers. I hope you are able to get what you're asking, or at least what you NEED for your home, I'm just afraid that your home may be on the market for a very long time with the current market. But, if you don't NEED to sell (for job transfer, etc) you may be able to hold out long enough for the market to turn around. It will turn around, but may just be a matter of time....

[Chkmama]

Prices are still heading down.. There is plenty of inventory. Take your time. Find your dream house. My house is not worth much more than what I paid for it 7 years ago. Sad for me, but great for you!