When you’re buying a Metro Detroit home, how can you tell if you are REALLY getting a good deal or not?
Real estate agents might say it’s a good deal…
The seller might say it’s a good deal…
But is there a way that you can run the numbers for yourself?
Well, at Mitten Made Properties, we’ve been buying and selling real estate in Southeast Michigan for a long time now, and we’re pretty darn familiar with the market here.
In fact, the success of our business requires that we always run the numbers on properties to make sure that we’re staying profitable.
Want to know how we do it so you can do it, too?
Here’s the gist!
Compare Recent Neighborhood Sales
The easiest way to determine the market value of a home is to look at the sale prices of other similar properties in the neighborhood that have sold within the last 3 to 6 months. The more recently they’ve sold and the more similar they are (in quality, square footage, number of beds/baths, location, and acreage, for example), the more helpful their sale prices will be in determining another property’s actual value.
Deduct Cost of Repairs, Necessary Updates, etc.
If the property you’re buying needs a lot of repairs or updates, then it’s important to deduct those costs from the fair sale price you came up with in the previous step. For example, if a recently sold, comparably sized home in the same neighborhood has a brand new roof and furnace, and those pricey necessities are 20 years old on the home you are looking to buy, the estimated replacement cost should be deducted as part of your calculations.
Factor in Agent Commissions and Fees
Also consider real estate agent commissions and closing costs, because they will ultimately be tacked on to the total cost of your mortgage. Even though these fees are not directly related to the quality of the home you’re purchasing, they will make a big difference in whether you get a good deal or not. Agent commissions are usually negotiable, and some closing costs may be lowered or paid by the seller in certain market conditions.
Hope that helps!
Now, at Mitten Made Properties, we ALWAYS pay the closing costs and we do not take a commission. So if you have a Metro Detroit house that you want to sell fast, give us a call at (248) 883-3340. We can make you a fair cash offer, purchase your home as-is, and close in as little as two weeks.
It’s a stress-free way to sell your current property with nothing out of pocket so you can focus on buying your dream home!