Michigan Foreclosures Represent 52% of the Homes Sold In July of 2008
Northville Blog, Metro Detroit Market, Market Statistics
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Of the 3,579 homes that sold in Realcomp's MLS, 1857 (52%) of those home sales were bank foreclosures in Michigan. In fact in the city of Detroit more sales were foreclosures than normal homeowner sales. When I am on a listing appointment I always stress to my sellers that the days are over when we used to ignore the bank foreclosures and tell ourselves they are not our competition. They are just as much our competition as the neighbor down the street. You could literally sit on the market for years while the bank foreclosures keep selling around you. There is enough of them on the market, that they can account for the majority of sales if homeowners allow them to.
Even Oakland County, one of the wealthiest counties in the entire country, had 54% of the sales in July account for bank foreclosures. Finally people are starting to understand that wealthy people in great areas are losing their home. This is not only a problem in the inner city. The suburbs have their share of people losing their home at record levels.
If you're not competing with the foreclosure in your neighborhood head to head on their price, you better have them beat hands down with the condition of your property. What I mean is, when you take the bank foreclosure price of the home, the buyer should not be able to put that house in the condition of your house for the difference in price. If they can, the buyer will purchase the foreclosure, and with the difference in price, they will remodel the home the way they want it to look and it will be all brand new.
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