Metro Detroit Home Buying FAQ: What Do I Offer for this House?
Right off the bat, I need to get something out in the open:
There is no such thing as buying a house for “pennies on the dollar.”
Unless you mean like 97 or 98 pennies on the dollar.
Even the days of “low-balling” are over. It’s just the way it is in this market.
The best way to determine what to offer on a house is to have your Realtor do a market analysis and explain what other similar homes in the vicinity have sold for recently.
You can also order an appraisal, which will cost you approx. $350-450. The appraiser will go into more detail, adding value because of more square footage, or taking away value because the basement isn’t finished and there’s only a 1 car garage.
Today’s real estate market is kind of strange. The inventory is low and a lot of times there are multiple offers on a house, making everyone give their “highest and best” offer. Almost auction-like.
Hope this helps!