Hello Kcarlson,

Is this home in Waterford? For the price I would assume the home is in need of repair. With the programs that they have today such as the 203K mortgage where you would have the repairs done and then you get a mortgage for the amount that the home would be worth if the repairs were done. So my point is like Shirley said offer as much as you think the home is worth and also how much would the home be worth if those repairs are done. Think of the area the home is in, the choices are yours. But to give you a tip I've picked up from showing many bank owned homes is that people tend to shy away from the ones that need work the most. The ones that are clean are being fought over and plenty of times get more than asking price. So if your willing to do some work you can get a decent home that will be fine after the work is done. If you have any further questions concerning this issue or any others feel free to contact me.

Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406

This situation is becoming more common in this market. Typically, a house at a "fire sale price" will draw multiple bidders. You must consider the "true" value of the house given the comparable houses in the area. Then, consider what you are approved for. Then...the ultimate consideration...what you are willing to pay for the house.

When multiple offers occur, you will likely be asked to submit your "highest and best." You will have one shot at it. I tell my clients to consider the entire situation and offer a price at which they can be comfortable. Once the offer price is decided, you just have to let it go. If your offer is accepted, don't look back and try to analyze whether or not you bid too high. On the other hand, if your offer is not accepted, you know that you did the best you could. Of course, you don't want to offer anything above what the true value is. However, in these situations, the house is normally way below the true value. It is very common for the accepted offer to be above the listing price.

Oh yes, don't be disappointed if you lose out several times. Our market is definitely a buyer's market, but remember, there are lots of buyers also looking for the "steals", so it is also a very competitive buyers market.

Your buyer's agent should be able to lead you through the process.

Best of luck to you!

Shirley