BIG-TIME BARGAINS
January 19, 2008
BY ZACHARY GORCHOW
FREE PRESS STAFF WRITER
How can you own a house worthy of a millionaire, at a price typical of your standard three-bedroom, two-bath bungalow?
It sounds too good to be true. But in fact, buyers can find scores of historic, large homes available for astonishing bargains -- some under $200,000 -- in beautiful Detroit neighborhoods, deals that real estate agents say haven't been this good in decades.
The listings are eye-popping, like the stunning six-bedroom, four-bath, 5,500-square-foot, 1923 colonial in the Boston-Edison neighborhood for $249,500 -- about $45 a square foot. Or the five-bedroom, three-bath, 2,700-square-foot colonial in the University District for $149,900.
If it's a Cape Cod you're eyeing, there's the seven-bedroom, three-and-a-half-bath, 4,650-square-foot home in Indian Village for $314,999.
But what frustrates real estate agents and owners is the struggle to sell such historic gems -- even at these prices. And some have slashed their asking prices by tens of thousands of dollars.
Like the 1916 Boston-Edison colonial of Jerry Berry's 91-year-old mother. He and his siblings grew up in the house.
With six bedrooms, three full bathrooms, two half bathrooms, 3,400 square feet and features such as beveled-glass French doors and crown molding, Berry said it's hard to believe it has been on the market more than a year. And he reduced the price from $190,000 to $175,000.
"All of us thought the house would just go right out easy," Berry said. "Seeing as how well maintained the house is, we thought someone would just jump on it."
The real estate market is sluggish everywhere in metro Detroit, and prices have plummeted.
But it's in Detroit where prices have dropped the most, said Ron Simpson, the outgoing president of the Detroit Association of Realtors and broker-owner of Southfield-based Century 21 Elegant Homes.
Buyers have long been able to get more house for their money in Detroit than most suburbs, but today's deals in the city are at "a whole new level," Simpson said.
"I've been doing this 30-some years," he said. "And the prices now are back to where they were 20-some years ago."
There are trade-offs, though.
While the homes are in some of Detroit's best neighborhoods, the areas have seen a spike in the number of foreclosed and abandoned homes, threatening the values of other houses.
"It's scary, yes it is," said Maxine Jackson, 70, a Boston-Edison resident who lives down the street from Berry's mother. "It's like a giveaway. Something that you've had all your life."
And then there are the issues of property taxes and insurance, which typically are higher in Detroit than in the suburbs. There also is the cost of heating a large, older home, and the issues of struggling schools and a higher crime rate.
Jeff Packer, the real estate agent for Berry's mother's house, said trying to sell the property is an "uphill battle."
Put that house in Royal Oak, he said, and the home would sell for more than $300,000. He has yet to receive an offer.
"There's a lot of buyers out there who are too timid to buy in Detroit," he said. "If people can overcome that perception and see the reality of the area, it's a very nice area to live in."
One buyer considering the city is Dan Klinkert, 31, of Dearborn, who has looked closely at the Boston-Edison neighborhood, which runs along Chicago Boulevard on either side of the Lodge Freeway.
"The character is unparalleled of the homes," he said. "3,500-square-foot homes -- you're looking at half to a million dollars a lot of other places."
Bernadine Davis and Judith Womble are the agents trying to sell another stately home in Boston-Edison.
It needs some updating, particularly in the kitchen, they said. And the owner told them it cost $800 to heat the house during the coldest month last winter.
It has five bedrooms, four bathrooms and 4,500 square feet. The surrounding homes are striking, except for one critical problem -- a boarded-up residence two doors down.
After a year, the house still is sitting, despite a listing price of $214,900, down from $270,000.
Put that mansion in Birmingham or Farmington Hills, they said, and they would ask from $800,000 to $1 million for it.
"There is character in these houses you can't find anywhere else," Womble said.
Some neighborhoods have begun aggressively marketing themselves to potential buyers.
In the West Village on the city's east side, when residents learn of someone interested in buying a house in Detroit, they recruit them to their neighborhood by taking them on a one-on-one tour and introducing them to the neighbors, said Bill Swanson, 33, a West Village resident who has conducted some of the tours.
Four people have bought homes in the neighborhood in the last year thanks to this effort, Swanson said.
"Once you meet people and realize it's a great neighborhood, it makes buying in the neighborhood really easy," he said.
Indian Village is another prized area in Detroit. There, a seven-bedroom, six-bath, 7,187-square-foot colonial is listed for $349,995.
"A comparable house somewhere else would be millions," said Joy Santiago, the house's real estate agent. "It definitely should have gone by now. These are really good prices."
But the house has been on the market for more than six months and has been cut from its original $450,000 price tag.
"In Detroit, what's happened, anyone who has an interest in those homes has to appreciate the history behind them," said agent Cheryl Kachaturoff. "There's a lot of hidden treasures in our city."
January 19, 2008
BY ZACHARY GORCHOW
FREE PRESS STAFF WRITER
How can you own a house worthy of a millionaire, at a price typical of your standard three-bedroom, two-bath bungalow?
It sounds too good to be true. But in fact, buyers can find scores of historic, large homes available for astonishing bargains -- some under $200,000 -- in beautiful Detroit neighborhoods, deals that real estate agents say haven't been this good in decades.
The listings are eye-popping, like the stunning six-bedroom, four-bath, 5,500-square-foot, 1923 colonial in the Boston-Edison neighborhood for $249,500 -- about $45 a square foot. Or the five-bedroom, three-bath, 2,700-square-foot colonial in the University District for $149,900.
If it's a Cape Cod you're eyeing, there's the seven-bedroom, three-and-a-half-bath, 4,650-square-foot home in Indian Village for $314,999.
But what frustrates real estate agents and owners is the struggle to sell such historic gems -- even at these prices. And some have slashed their asking prices by tens of thousands of dollars.
Like the 1916 Boston-Edison colonial of Jerry Berry's 91-year-old mother. He and his siblings grew up in the house.
With six bedrooms, three full bathrooms, two half bathrooms, 3,400 square feet and features such as beveled-glass French doors and crown molding, Berry said it's hard to believe it has been on the market more than a year. And he reduced the price from $190,000 to $175,000.
"All of us thought the house would just go right out easy," Berry said. "Seeing as how well maintained the house is, we thought someone would just jump on it."
The real estate market is sluggish everywhere in metro Detroit, and prices have plummeted.
But it's in Detroit where prices have dropped the most, said Ron Simpson, the outgoing president of the Detroit Association of Realtors and broker-owner of Southfield-based Century 21 Elegant Homes.
Buyers have long been able to get more house for their money in Detroit than most suburbs, but today's deals in the city are at "a whole new level," Simpson said.
"I've been doing this 30-some years," he said. "And the prices now are back to where they were 20-some years ago."
There are trade-offs, though.
While the homes are in some of Detroit's best neighborhoods, the areas have seen a spike in the number of foreclosed and abandoned homes, threatening the values of other houses.
"It's scary, yes it is," said Maxine Jackson, 70, a Boston-Edison resident who lives down the street from Berry's mother. "It's like a giveaway. Something that you've had all your life."
And then there are the issues of property taxes and insurance, which typically are higher in Detroit than in the suburbs. There also is the cost of heating a large, older home, and the issues of struggling schools and a higher crime rate.
Jeff Packer, the real estate agent for Berry's mother's house, said trying to sell the property is an "uphill battle."
Put that house in Royal Oak, he said, and the home would sell for more than $300,000. He has yet to receive an offer.
"There's a lot of buyers out there who are too timid to buy in Detroit," he said. "If people can overcome that perception and see the reality of the area, it's a very nice area to live in."
One buyer considering the city is Dan Klinkert, 31, of Dearborn, who has looked closely at the Boston-Edison neighborhood, which runs along Chicago Boulevard on either side of the Lodge Freeway.
"The character is unparalleled of the homes," he said. "3,500-square-foot homes -- you're looking at half to a million dollars a lot of other places."
Bernadine Davis and Judith Womble are the agents trying to sell another stately home in Boston-Edison.
It needs some updating, particularly in the kitchen, they said. And the owner told them it cost $800 to heat the house during the coldest month last winter.
It has five bedrooms, four bathrooms and 4,500 square feet. The surrounding homes are striking, except for one critical problem -- a boarded-up residence two doors down.
After a year, the house still is sitting, despite a listing price of $214,900, down from $270,000.
Put that mansion in Birmingham or Farmington Hills, they said, and they would ask from $800,000 to $1 million for it.
"There is character in these houses you can't find anywhere else," Womble said.
Some neighborhoods have begun aggressively marketing themselves to potential buyers.
In the West Village on the city's east side, when residents learn of someone interested in buying a house in Detroit, they recruit them to their neighborhood by taking them on a one-on-one tour and introducing them to the neighbors, said Bill Swanson, 33, a West Village resident who has conducted some of the tours.
Four people have bought homes in the neighborhood in the last year thanks to this effort, Swanson said.
"Once you meet people and realize it's a great neighborhood, it makes buying in the neighborhood really easy," he said.
Indian Village is another prized area in Detroit. There, a seven-bedroom, six-bath, 7,187-square-foot colonial is listed for $349,995.
"A comparable house somewhere else would be millions," said Joy Santiago, the house's real estate agent. "It definitely should have gone by now. These are really good prices."
But the house has been on the market for more than six months and has been cut from its original $450,000 price tag.
"In Detroit, what's happened, anyone who has an interest in those homes has to appreciate the history behind them," said agent Cheryl Kachaturoff. "There's a lot of hidden treasures in our city."
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