Market Conditions in 48906>Question Details

Melissa, Home Seller in Lansing, MI

I bought my house in 2005 for 97,000 and owe 93,000. It is now appraising for between 84,000 and 95,000,

Asked by Melissa, Lansing, MI Thu Apr 10, 2008

depending on the realtor. I would like to move out of state and don't want to just leave my house. Am I better to try to sell it now and come to the closing with money, or will next Summer be better? When are prices expected to get back up to 2005 levels again? BTW, there are 3 foreclosures within 2 streest of mine that are listed in the mid-$40,000s.

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Man - someone better get to the store and get some agent-spray and start spraying around here!
0 votes Thank Flag Link Sun Nov 14, 2010
As Gary stated Realtors/Agents are not appraisers. To find out the actual fair market value and if you are unside down or not, you need to contact an appraiser to get a real appraisal. The range of numbers, as you said "depending on the realtor", is just that, a range of numbers of suggested selling prices (not appraised value) that the realtors/agents think they can sell the property for. As sales people (not appraisers) they will and do provide a value to hopefully get the listing and the commission if or when it should sell. Unless your property is a foreclosure, the 3 you mentioned do not have any bearing on the value of your property, however, they and all distressed properties do have an effect on the overall market condition and trends in the area.
0 votes Thank Flag Link Fri Apr 11, 2008
Melissa, Prior to making any rash decissions, I would be more than happy to discuss your situation face to face, provvided your house is not currently listed with a Realtor. You would be under no obligation to me, however with my prior experience, I may guide you in the right direction. feel free to call. Mike
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0 votes Thank Flag Link Fri Apr 11, 2008
You may want to consider contacting your lender to find out if a "short sale" is a possibility, when your lender agrees to take less than the amount owed as a full pay-off on your loan. If you have more than one mortgage, call the 2nd lender as well. When your home is listed by a Realtor, they will make it known that an offer must be accepted by the lender as well as the buyer as a short sale.

If the foreclosure homes are in great shape, they will be tough competition. If your home has features they don't, and is in much better shape, the foreclosures are less competition.

It's important to take a fresh look at your home & property - as though you were a buyer thinking about purchasing it. Take some photos and compare them to other homes listed for sale in your area on the net. You may see some things you can improve that won't cost a lot but still give you an edge. Mainly, clean like crazy, get rid of any clutter, and move out any excess pieces of furniture. There are serious buyers still out there, and some do not want to buy foreclosed homes.
0 votes Thank Flag Link Fri Apr 11, 2008
I may have a solution for you Melissa especially if you have to move. Keller Williams has teamed up with Marketplace Homes and created the "Pre-Owned Home Buyout Program". Depending on your circumstance it may a good fit, but we would need to work the numbers to make certain you would come out ahead. You can email me if you'd like to dicuss in more detail or visit my website.
0 votes Thank Flag Link Fri Apr 11, 2008

Most Realtors(R) are not appraisers. You may have a range of value from between 84,000 to 95,000 and that may actually be the range. I would agree, you purchased your home at the peak of the Michigan market and values have dropped. Only a local agent would be able to give you correct information. I do not recommend going with the agent giving you the highest price without some type of proof. Obviously neither used the same homes in their evaluation.

Question: Do you want to move out of State, or do you have to move out of State? If you want to move, I would think hard. But, then again, the date keeps getting pushed back for when the market will recover. I believe the US will be pressured by the G-7 at their upcoming meeting. This has caused a global problem. It may still take years with an "s".

If you have to sell, I suggest spending the money for a not for refinance appraisal. That would give you a better idea of how much money you might have to bring to the table.

Many homeowners are choosing to lease their homes, that may be an option but you should really think hard about any problems you might have including eviction and increase in insurance and non-homestead property taxes.
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0 votes Thank Flag Link Fri Apr 11, 2008
you probably will not like this answer
but you are trapped
until the foreclosures get sold
and even when they sell
the fact may be that your house
is really only worth $45K
you bought at the peak of the bubble in 2005
hang on for 5-10 years
it should be worth $97K again
0 votes Thank Flag Link Fri Apr 11, 2008
Great question, one that many sellers are sking us here lately! if you bought in the 2005 area, in almost every case your property values have dropped. You have a few options you can keep it and rent it out, for at least two years maybe more, and wait for the market to return. Or you can try for a short sale which will not allow you an profit at the end of the sale. No body has a crystal ball, so nobody know how long this could go on.... I hope this helps
agent - Leanne Smith
0 votes Thank Flag Link Fri Apr 11, 2008
In similar situations in the downtown Detroit area like yours. I have seen that the foreclosures will go first before anything close to market rate. Now of course that depends on their condition too, but in general that is the case. If t you have the ability to wait that may be a better answer. As fas as coming to the table with money, how much are you prepared for? In cases like these you would also want to make sure that your property is a far better buy than the others to get a good price. That means, curb appeal and interior have to out preform the others, in order for a buyer to want to look at your over that that is even at a less price. As far as next summer being a better time. I would definitely interview agents specializing in your area to better guide you based on current conditions and projections for next year.
0 votes Thank Flag Link Fri Apr 11, 2008
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