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I've been in my Troy, Michigan home for a little over two years now. Paid $185,000 for it because anything more would, well, be suicide. I've put abour $4000 into it since then, in updates and maintenance. Is the starter home market okay out here? Should I even bother trying to get out of this house?

2006-12-26 09:36:24 · 3 answers · asked by Tr0nik 2 in Business & Finance Renting & Real Estate

3 answers

I work for a mortgage broker in MI. The market isnt that great. A lot of appraisals are being cut. You can be sure you wont get $185,000 out of it. They will take the cost of the houses around you that have been sold. In other words if 4 or 5 houses (like yours) in 1/4 mile of you have only sold for $150,000, that is what the comparisons (same dimensions of your house) will show on the appraisal. Even if the house is appraised at $185, it will be cut due to the comparisons to about $150,000. In other words, no one could buy it for more than $150.
Lenders are getting tougher right now. You must have over a 620 FICO score to get a decent rate. And the amounts the lender will finance are getting lower also. Especially to investors or "non-owner occupied houses.
If you can, hang on for a while and see what happens to the market. If you have seen alot of for sale signs around you that have been there for a while, then you know they arent getting what they are asking. Especially in a high priced city like Troy.
But your best bet is to check with a Realtor in the area. They know what houses are selling for.

2006-12-26 13:52:15 · answer #1 · answered by kimmamarie 5 · 0 0

Call up two agents and ask them to do CMA's (Competitive market analysis) for you. They will check out the local market and give you a listing price, and show you comparable homes that are listed or recently sold. Do 2 agents becuase its not a science and they might vary. You dont have to use them if you dont want to-- you can still go FSBO.

An agent will also show you what you'd walk away with-- minus your closnig costs, taxes, listing costs, etc.

There's no way to tell you what the market is in a state wide basis-- it greatly depends on location. A CMA is free, so that's the best route to go.

2006-12-26 17:39:19 · answer #2 · answered by Anonymous · 0 0

You may make a little, but MI is tough right now. You are better to break even now than wait until the automotive company's to actually start shutting down the plants.

2006-12-26 17:40:57 · answer #3 · answered by Joe S 6 · 0 0

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