One of the interesting phenomenons in today’s Ann Arbor real estate market is the variation in sales prices.   In the same neighborhoods, you will see one home sell way above the average, while most of the homes are selling for the average price or below.   I’ve observed this several times, and really started to analyze what was happening, and in the process I learned a lot about human nature.

Distressed Ann Arbor Home Sellers!

What we are seeing today is a situation where many Ann Arbor home sellers are in financial distress.    It used to be that if you lost a job, had a divorce, or had any number of other hardships occur, you could simply sell your home and be on your merry way.    Today, that is seldom an option.     Many Washtenaw County home seller’s have to sell their home and they are upside down with barely any money in savings, so they have to do a short sale to avoid foreclosure.     As the foreclosure date approaches, the seller becomes more and more motivated.    Their ability to negotiate becomes very compromised.    A seller with a bad location or poor condition is at a greater disadvantage in a high inventory market.     They are often the last homes to sell, and since time isn’t on their side, they have to lower their prices to get noticed.

Ann Arbor Home Values Still Rely of Location – Location – Location!

On the other side, you have the house that has the best location in the subdivision, in in excellent condition, and the seller isn’t in a compromised situation.    They can wait.    The buyers will  look at that home and try to buy it for the “market value”.     When the seller’s refuse to sell for the “market value”, the buyer has to make a decision – do I buy this house  that I really love, for their price;  or do I go for the deal, and end up with something that is just okay?

The Interesting Nature of People & Ann Arbor Real Estate

Human nature is so predictable.   People want what other people want, and they will move heaven and earth to get it.   By getting something someone else wants,  a buyer is getting confirmation that they made the right decision.    On the other hand, if a seller has a home that no one wants – it’s been on the market for months, has a bad location and is in bad condition – the lack of offers is a constant confirmation that no one wants the house, and all urgency disappears.

So, as you look at homes in the Ann Arbor area, be aware that there are discrepancies in prices.   You may also have to give up on getting a “deal”, if you’ve fallen in love with a house that everyone wants.

Having a professional guide you through these choppy waters is more important than ever.    Be sure that you’re working with an Ann Arbor Realtor that truly understands the market and it’s inconsistencies. For more information contact us today at info@bouma.com or 734-761-3060.

Until next time-

Martin