Spring brings the urge to buy a new home or a bigger home. Lots of internet searches for the perfect
home are being done at midnight in the robe & slippers, here in Grand Rapids Michigan, as elsewhere
around the country. The mortgage rates are low, the apartment idea was great but now some
may have decided they want a piece of the American Dream. They want their own garage,
their own deck and decorate with flamingos if they want.
Let's take a peek at that midnight computer search & see what the average consumer is searching for.
I like to call this the "Dream Home Wish List." It seems we are ever optimistic and consistently
put these parameters in for top home search requirements, year after year, here in Grand Rapids.
| Price | 90,000 - 99,999 |
| Architectural Type | Ranch |
| Basement Type | Walkout |
| Number of Bedrooms | At Least 3 |
| Number of Baths | At Least 2 |
| Garage Size | At Least 2 Stalls |
| Square Feet | 4,000 or more |
| Zip Code | 49506 |
| County | Kent |
| School District | Forest Hills |
| Project Name | EXCLUDE ALL CONDOS |
| Age | 5 to 25 Years |
| Riparian Rights | Lake Front/Private |
| Acreage | 1 to 5 |
| Lake Name | Lake Michigan |
| Air Conditioning | Yes |
| Fireplace | Yes |
Anyone would buy this house in a nano-second, if it existed,.......... but it doesn't.
A 4000 sq ft ranch house in Forest Hills Schools with acreage alone would have you in the higher price
brackets [300K-500K] immediately. A 4000 sq ft ranch house on Lake Michigan is probably in the multi-
million category. So much for the Dream home for most of us.....let's go back to reality.
So just what did the average home buyer purchase last year and this year in the Grand Rapids area?
Last Year in 2007:
- 3159 households bought a house for $99,999 or under
- 3278 households bought a house for $100,000 - 149,999
- 1846 households bought a house for $150,000 - 199,999
First Quarter 2008:
- 1409 households bought a house for $99,999 or under
- 754 households bought a house for $ $100,000 - 149,999
- 420 households bought a house for $ 150,000 - 199,999
It looks like prices have dropped dramatically and more people are buying in the lowest price bracket
of under $99,999. But these statistics are not comparable. About half of the homes selling for under
$100,000 in 2008 are bank foreclosures. The homes' value and price sold are not the same.
Please refer to my other posts on bank foreclosures for the reasons:
Foreclosures are NOT fun - Be prepared to earn your bargain
Are Foreclosures are Selling Faster than Traditional Homes?
Stripped and Violated: This House could be Next Door to You
The average foreclosure price is $78,400 compared to the overall average home sale price of $119,600.
When the short sales are taken out of the total, the average home sale price is now $160,900.
Bank foreclosure houses are typically not priced to compare to the homes in the neighborhood in good
condition. The foreclosure homes are usually abused and need lots of work to be similar in value to other
houses in the neighborhood. Some need literally everything to be habitable!!
Most households ended up spending more than they thought they would. To get the home of their
dreams, they spent between $100,00 and $200,00, on average.
If a first home or larger home is in the plans for you, we would be honored to assist you in the
process of purchasing the "home of your dreams".
Copyright by Terry Westbrook 2008
Search Grand Rapids Homes for Sale
Greater Grand Rapids Area Information
Contact me: 1-888-240-1968 x 0 toll free
Website url: Terry Westbrook.com
Email: terry@TerryWestbrook.com
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Terry I really appreciate the way you approached the topic. When I talk with buyers, of course, I always ask them what they are hoping to have in a house. (How much house payment they can handle generally comes first). More times than not, hearing their wish list and knowing their price range puts me immediately to the next phase: reconciling the fact that they can't afford their wish list. In Elkhart County, if the price range is under $100,000 I'm usually left asking: Which is more important to you--a basement or a garage.
Pamela: It is a decision each of the buyers have to make in every market area: basements, fireplaces, 4th bedrooms all options that the buyers have to classify as wants or needs. Good Luck.
Terry it is amazing how Real Estate markets are so vastly different around the country. In my area you couldn't even buy a lot for what you sell homes for!
Bill: Even with that situation they try to buy it cheaper imagine that. Thanks for stopping by hope you have a great 2008.
While I am not in the home of my dreams, I am not having nightmares either. Guess I'll stay where I am, no relocating this year.
Bonnie: I'm not ready to move either thanks for stopping by.