This place seems like a crazy deal even with national recession. Wonder whats the catch?
http://www.zillow.com/m/homedetails/...24568734_zpid/
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This place seems like a crazy deal even with national recession. Wonder whats the catch?
http://www.zillow.com/m/homedetails/...24568734_zpid/
Looks like a nice place, but the price doesn't seem to be that far out of normal for the area.
Yea but 06 sale price was 85k higher...cant imagine one would part with it. Its not short sale or foreclosure
Thats what the market is getting. If anything, I thought it was a bit high. These days larger properties are not selling well at all. People don't want to take bigger baths than they need to. They are buying knowing there is a risk so to lessen risk, if they only need 3 bedrooms then that is what they buy.
Big houses = big utilities and big taxes. Unless you're rich, it aint worth it.Quote:
Originally Posted by DetroitPlanner
this is quite close to where i live, i can tell you easily why the house is cheap. the value of the houses in the area have been declining for some time around hear due partly to falling test scores at the schools and growing house neglect. a-lot of my neighbors are running out of money and moving to more affordable housing, leaving lots of houses for sale [[driving down costs). i personally believe its all part of the ring theory, you will probably start seeing more deals like this for some time.
Not crazy. $50k might be crazy. $275k was crazy, but then we were all crazy back then.
Looks like a nice house, probably a nice secure neighborhood. I don't see a whole lot of downside. I say, make them an offer. [[contingent on a building inspection of course)
Of course, a viewing with a real estate agent might be a good idea before you do all that.
That's pretty normal.
I bought my house for 155K, and identical [[but not as well maintained or updated) foreclosures are going for 40-60K.
It breaks my spirit every time I think about it.
Also big maintenance costs.Quote:
Originally Posted by Chicago48
That's why more people are renting than buying . It could change if the market comes back.Quote:
Originally Posted by 48091
That's actually a high price, IMO.
That part of Farmington Hills isn't that great, and it's an older house.
Young families with some money are usually buying newer homes, or in neighborhoods with better schools.
Crazy deal? Not really. The house is 50 years old. Although the interior has been updated, homes of this age tend to cost more over the long run. Also, suburban homes from this era don't have a lot of architectural detail that you would get with a home from the 20s - 40s. If you see this as a "crazy deal" because you expect the home to be a good investment, take note that Farmington Hills probably peaked in terms of home values before home values crashed. These homes aren't going to pop up in value when housing values start to go back up.
32% price drop from 2006 is actually better the most of SE Michigan has held up.
Quote:
Originally Posted by Bham1982
Correct. If most families are going to take the plunge, it's usually new construction they are looking for. That's why i don't understand homes built in the late 50's, 60's or 70's still commanding those types of prices.
Yes, it's ring theory.
I call it the pattern of build and abandon that Detroit developers and real estate agents begin in the 1940's or earlier.
There's not much that's attractive about houses in neighborhoods like that. Think of NW Detroit in the 50's and '60's. Same forces at work.
Look at that new mall on US 23 1 mile South of Brighton and i-96, at Green Oak Township. 3-4 years old. Was never needed. Now partly empty.
The one at the top of the hill on I-75 might be fine now. But that's clearly in danger.
Developers on average in the US only need 7 years to recoup their investment on a typical mall. After that, they don't need to care what happens to the land, the building and the community.
Michiganders keep accepting this junk that hurts them.
The whole process is destructive. It's making so many of us poor.
"That's why i don't understand homes built in the late 50's, 60's or 70's still commanding those types of prices."
Compare asking prices and selling prices. People can ask what they want but finding willing buyers is another thing.
That's not a bad price for what looks like a nice house. New construction isn't always better. Less wood is used, thinner wood also - try walking around on a new house roof, it gives you motion sickness! Plywood ain't what is used to be.
That location is close to 696 without being right next to an off ramp. Commuting around the area should be no problem as gas prices go up. I am not sure those buying out in South Lyon and driving to Troy will be happy with the traffic on 96 [[and no options) when gas hits $5/gallon, if they aren't already. If you work at the GM proving grounds, then South Lyon is OK.
One thing that is nice about older homes like this - they are still modern enough, and can be improved if you want. Plus, the landscaping is mature - real trees and shade. I love these new subs in former fields where they plant sticks and expect you to wait 20 years for shade.
If the home passes inspection, I say go for it. New homes don't always pass inspection.
You could look at if from an environmental standpoint - likely shorter commute to most of Detroit than farther out, the lumber and energy has already been used versus new construction, and the useful life of the house still has a long way to go.
Moreso than the home itself, the primary consideration in real estate is location.Quote:
Originally Posted by detlump
Given the target market for this type of home [[youngish family with kids and some decent earnings), this home won't get a high offer because it's basically in the least desirable part of a school district that, while still good, is perceived to be in decline.
And, outside of schools, my sense is that younger families either prefer the newer construction [[Novi, Rochester Hills, Northville Twp.) or the classic older communities [[Birmingham, Rochester, Huntington Woods).
They sure as heck don't want 1950's homes in a declining school district.
I've considered becoming a landlord myself. I want to move to a different neighborhood but can't get rid of this house.Quote:
Originally Posted by Cincinnati_Kid
"And, outside of schools, my sense is that younger families either prefer the newer construction [[Novi, Rochester Hills, Northville Twp.) or the classic older communities [[Birmingham, Rochester, Huntington Woods)."
Younger families want a home they can afford. If they can find it in those communities, they'll go there. But they can't always afford to live in those places especially now that the money spigot has been turned off for financing home buyers. We're seeing lots of young families in Novi going into older homes. Most new construction isn't accessible to them price-wise, even with the discounting in prices that we've seen in new homes. Buying an older, smaller home gets them into Novi schools in a house that they can afford.
This is true, and there's little doubt that someone will pick up this home. Farmington Hills, while it has problems that weren't around 20 years ago, is still a nice community.Quote:
Originally Posted by Novine
But I do think that these types of communities are stuck in a very slow, long-term decline. They don't have the newness, nor the charm, and prices in Metro Detroit are affordable enough that middle class folks can often buy into newer construction in a good school district.
I see plenty of new or newish McMansions being offered for under 300k. That's affordable to a two-earner couple making, say, 50k each.
Bham 1982 is spot on here. The school district issue is huge. The $150k+ income households that fuel the $350k+ suburban neighborhoods rarely settle for school districts that are not in the top 10-20% when it comes to MME and ACT scores.Quote:
Originally Posted by Bham1982
I feel ya. Hopefully things will workout for you and others in a couple of years, that's about how long it's going to take. I've given up selling mine.Quote:
Originally Posted by 48091