Wednesday, December 24, 2008

Home Bargains in Ypsilanti and Superior Townships

Ypsilanti and Superior Township homes offer Great Value - If you are in the mood for some discount shopping this time of year, think homes - not just holiday gifts.

Homes for sale in Superior Township of Bromley Park, Brookside and Prospect Pointe offer buyers tremendous value. These are just a few of the subdivisions in Ypsilanti and Superior Townships that I like. I am big on them because most of the homes in these neighborhoods were built 2004 or later and offer updated floor plans, larger yards and the amenities buyers are looking for such as large kitchens, master bedrooms with large closets, well lit luxury bathrooms, large clean daylight and even walk out basements.

The best deals in these neighborhoods are generally bank owned foreclosure homes and are priced to sell quickly with asking prices between $110,000 and $140,000. These same homes sold in 2004-2005 for well above $200,000. Often, these homes are in near new condition needing only minor and cosmetic repairs. Where there are many homes for sale at much higher prices, the foreclosures have been and probably will continue to come on the market at very competitive prices and priced. Sometimes they are price so aggressively they receive multiple offers and sell above asking price.

Buyers interested in purchasing a foreclosure home should be educated on what is necessary to make the process go as smooth as possible. A few important points:
  1. Have your financing in order up front with enough money set aside in available funds for your down-payment and closing costs. This way when you find a good home you can move fast. There are still excellent programs out there for low down-payments with good credit. Banks will often ask for certified funds for the earnest money deposit too. Banks are also willing to provide a buyer 3 or even 6 percent back for closing costs and prepaid expenses.
  2. Review and understand what your closing costs and prepaid expenses will be and what your what your payment will look like - up front. Talk to your lender and agent at length to clear up any questions before writing offers.
  3. Have ready funds available for inspections and repairs. Some expenses you will need to be prepared for and expect to pay for at the time of service include - Contractor's and radon inspections, de-winderization (depending on the bank), home appraisal, appliances (many bank owned homes have no appliances), money for minor repairs - banks are often not interested in talking about any repairs - this is one reason the homes are priced aggressively, though in certain situations repairs can be negotiated.
  4. Expect homes to need paint and carpet at the minimum. These homes are not staged for sale, and many times the properties were treated poorly by unhappy owners that found themselves in an unfortunate situation.
  5. Expect to sign bank lengthy bank sales contract addendums.
  6. Expect a lot of waiting and then being ask to work quickly. Banks are understaffed and not very good at selling houses! It can (not always, some are getting much more effective) take a long time for the banks to respond to your offer and get signed paperwork back to you. But, once they give it back, they will want you to work quickly.
  7. Keep a long time horizon, don't expects prices to go up to previous levels next year. I hope they do! Buy the home because it fits your needs for home ownership at a price you can afford.
It pays to take the time to sit down upfront with an experienced buyer's agent that can make sure you are up to speed in these areas before you get serious about writing offers. All the work is worth it.

Bromley Park Ypsilanti MI

No comments:

Post a Comment