If you don’t live in Michigan you might not be noticing how much the economy sucks lately, but here it’s getting worse every day.
Here’s an example:
I bought my house almost 2 years ago and I got it at a bargain price since I’m part of a High Return Real Estate investment property group. In fact, the previous owner (who only lived there one year) managed to pay off their mortgage and pocket only $50 after selling. I think I got it for about 80% of the asking price.
Last spring, my neighbor died. His grandkids moved in but couldn’t afford to pay the bills so they put the house up for sale. They originally listed it at its appraised value – 130% of what I paid for my house. Knowing that I had upgraded plumbing and electrical, put in a deck, and hired a Ware water drainage company to create custom drainage solution plans for the property, I was excited about the prospects of what my house might be worth.
Not so fast..
Here we are 6 months later, and the house next door hasn’t sold. Not only hasn’t it sold, but in the month I’ve been working from home I’ve only seen 1 person come to look at it. Clearly nobody’s buying.
When I noticed they put up a “make offer” sign today, I went over and grabbed a flyer. The new asking price is about $35k less than originally listed – which brings the new list price to about 80% of what I paid for my house.
After living here for one year, the house next door is selling for less than I owe on my current mortgage.
It’s no fluke either. The neighbor on the other side of me is also selling his house for the same price, and a few doors down has resorted to trying to rent the house out after nobody put in a bid over the last 6 months.
It looks like I’m going to be stuck in this house for a long time – at least until the economy takes an upswing.