The key to making a good offer that will secure the Metro Detroit home you want is to know the market. You can never guess the sellers thoughts or believe what public records show. Let me give you some examples.
A couple of years ago my home buyers put an offer on a Northville home. It was owned by a retired couple that had moved out. The house was empty. The public records showed they owed nothing on the house. The listing ticket said "bring us an offer"
We put in a 13% below list price offer in. The house needed total updates. They turned us down.
Here's another one. My clients were looking at a Novi home. The public records showed they bought the house for $420,000 2 years prior. We put in an offer of $371,000 when the list price was $410,000. The public records showed they owed $375,000. We thought we would be countered. They accepted the $371,000 offer.
Then we came to the closing to find out the sellers had to come to the closing with $20,000 to sell the house!
On my first example who would believe that somebody that
would turn down a decent offer on a home that needed total updating. The house sold for $10,000 less three months later.
Then my second experience who would have thought that somebody would have accepted so little so quick when they owed so much.
Both offers were based on current market prices so they were good offers. The people that should have accepted didn't and the ones that did accept the current market prices did. You never know how a seller will react to an offer. So if you base your offer on current sales prices the you will be putting in a good offer. How the seller reacts you can't control. Then you just have to adjust your offer or move on after you hear from the buyer.
Russ Ravary your Metro Detroit real estate agent
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Russ, it is SO smart of you to go into the public records to find out what they paid, when and what the note is for (if applicable).
Even if you get a situation like your second example that defies conventional wisdom . . . it really helps to know.
Also, I go into MLS and see how many times the house has 'really' been listed and true days on market. (Our MLS resets after 30 days off market)
Another thing I do is find out from the HOA if there are any outstanding fees on the property, if they will tell me and they usually do. Sellers often get amnesia when it comes to HOA fees when their house is on market - and it can tip the scales in the wrong direction for a closing.
IN the "final analysis" we are always dealing with the individual personalities of the "players". Some Sellers are very pragmatic and logical. They will view an offer from a businesslike prospective, while other Sellers are too emotionally attached and consequently make poor decisions as a result.