Pam, Both Buyer and Seller in Ann Arbor, MI

I know of 6 foreclosures in my subdivision (Pittsfield Twp.) that came on the market in 2006 and finally sold

Asked by Pam, Ann Arbor, MI Wed Feb 27, 2008

in 2007--there's one now that came on the market a few months ago. Supposedly, the end of this year will be even worse than last year as far as number of foreclosures. Although, I don't have to sell, I would like to move out of Ann Arbor. Should I list my house now or forget about trying to sell for a year or more?

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smith3gary, Agent, White Lake, MI
Thu Feb 28, 2008
Pam, I would have to agree with Michelle, most likely you are in a declining area which may make it more difficult for buyers to qualify for a loan.

Here are three reasons to sell your home in this market:
1. You are purchasing a larger more expensive home. This is called moving up in a down market. Most people doing this are willing to loose, say 10 percent, on their current home but they make it up by purchasing the more expensive home at a bargain.

2. You are purchasing a home in an area or State where home values are rapidly increasing. In this case, your next homes value would keep going up and your current homes value would slowly decline widening the gap in value.

3. You are in danger of loosing your home to foreclosure.

A real estate professional could assist you by completing a net sale worksheet. Most companies have them.

Pam, would you like an online home evaluation? This would include several sales in your subdivision and possibly the surrounding area. That may give you a better idea of what's actually happening. There is no obligation.
Web Reference:  http://www.mi-living.com
1 vote
Michelle Gor…, Agent, East Grand Rapids, MI
Thu Feb 28, 2008
Good morning Pam,
Sara is right about Zillow, they must use zip code's to figure out neighborhoods, and in my area, the zip code "area" is large and expands to different school districts, so their estimates are too low for some areas, and to high for others. However Zillow does post sold homes and their prices. This can give you a rough estimate of the value of your home, but again like Sara said a realtor can give you a good estimate.

Also if you have had 6 bank owned homes sell recently and it took a year to sell them, you may be looking at a declining value area. Which means if the assesor figures your neighbor with this assesment, who ever purchases your home will "HAVE TO" put 5 percent down on the home if they are getting a loan.

However we are entering spring market. This is still the best time of year to list a home, and all those bank owned homes are all gone now (but the new one). Who knows how many more are coming in the future.....so this may be your best time to list...........if you do not have to move, you do not have to take a low ball offer, but be realistic with your listing price, if priced too high you surely will not sell.

Good luck!
0 votes
Sara C. Madd…, Agent, Ann Arbor, MI
Wed Feb 27, 2008
That depends on how much equity, if any, you have in your house. You can calculate that by adding up all the costs to sell (as an estimate, 6% of sale price for realtor commission, $8.60/$1000. of sale price in taxes, and maybe $1000 in other title costs etc -- this is a BROAD estimate.), subtract from your estimated sale price, and that's your net. What is your estimated sale price? Again, depends. Be careful if you go to sites like zillow.com -- they are notorious for over- or under-estimating value since those sites are only looking at recorded sale/tax values, not seller concessions, not amenities, etc.
The best way to know, honestly, is have a Realtor do a CMA (Competitive Market Analysis) for you, then go from there. The foreclosures may or may not relate to your house. If they are the exact same model, same lot, same condition, you might have something to worry about. Finally, you can always list, see how it goes, then withdraw from the market it just doesn't work out. Good luck and let me know if I can help at all!
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