Yeah, Another question about cheap houses (Lansing, Grant: bank owned, for sale, real estate)

tenlow · 03-21-2008, 05:42 AM

I'm looking at houses in the grand rapids area, and there are just so many listed under 50k that I'm having a hard time telling myself "there's got to be something wrong with that one".. It kind of loses it's effect when you've said it >100 times in a row. Coming from California, I get confused when I see any form of real estate selling for less than 400k, so you'll have to give me a bit of a break.

Without actually viewing the houses and inquiring about the details etc, I'll never know why a specific house is so cheap, but the only thing I can think of is everyone who bought a house in the last 2 years got foreclosed or something.

[url]http://public.grar.com/public/pubrecn.mac/start?MLS=707500[/url]

That's a great example of what I'm talking about. From what I've read it's in a reasonable neighborhood, and (if i'm reading the info correctly from this site) it sold about a year ago for triple it's current price.

Now that I've typed all that out, my specific question is are they all bank owned properties with no market, tons of liens, or falling apart? Those are really the only things I can think of that would cause such cheap prices.

marchair · 03-21-2008, 06:26 AM

There is always a reason homes are cheap, the reason in michigan is NO WORK, no one wants to live in michigan. Dispite what some say here, the proof is in the pudding, if michigan was such a hot place to live you would not be able to buy a house for 50k.
If you have an income ouside of working in MI. and you love the long cold drab winters, do not need to see the sun for months at a time. Then this state may be for you.

michiganbob · 03-21-2008, 07:24 AM

tenlow:

You are correct: throughout Michigan there are many inexpensive homes for sale. In the Lansing area (where I live) I have seen them listed for under $10K. Does that mean I would want to run out an buy one? No.

As in California, there are some places--even in Michigan--where the average person would not want to live IF they had a choice. Crime, lack of services, and bad neighbors can make even a cheap house expensive. On the other hand, if you move up to say, $100K (still cheap by Cali standards) you reduce your risk of all of the above. Same for $150K. At $200K (in most areas of Michigan) you can find a very nice house in a great neighborhood where you will likely feel safe.

On the other hand, if you are the type who doesn't mind putting bars on your windows and hearing occasional gunfire outside, then by all means pay cash for a $50K house and you will live "rent free" for the rest of your life.

Oh, and don't mistake this for advice on my part to actually buy real estate in Michigan at this time. As I have said in previous threads on this board, the "knife" of prices is still falling. If you want to catch it on the way down, be my guest. And if you buy, don't expect to resell--at any price--in the near future. My suggestion, if you really are set on getting out of California is to take some time, come to Michigan and look around for a while. Come in the Summer. Come in the Fall. And by all means come in the Winter. Spend a day in some of the neighborhoods where you see these houses and then decide if you want to invest in our State. But don't do it based on some pictures online.

tenlow · 03-21-2008, 07:37 AM

Well I've got the work thing sorted, I just need internet and a phone and I'm good.

The winter thing... I'm pretty sure that's why I'm going to be renting for at least the first 6 months. If I can make it through the winter I'll be ok.

I'm not looking at this as an investment. I'm looking at this as a way to both provide myself with a place to stay *and* get in on the not quite so elite club of homeowners. If I decide to sell later, so be it. If I spend 40k or so on a house, live there for a while and after 5 years, I can donate it to charity and take a loss of 100% because the cost of renting for that time frame would have surpassed the purchase price of the home.

Granted I'm making some completely unreasonable assumptions and ignoring a lot of important stuff, but the basis of my argument is valid. The only real important things I'm looking for in a home are (in order of importance) 1: Good Foundation, 2: Good Neighborhood, 3: No mold, 4: Good Roof. Number 4 is optional depending on price. Virtually everything else can be fixed on the cheap as long as there is a home depot within 500 miles.

allbusiness · 03-21-2008, 08:26 AM

Simply put, that's probably not what most people would call one of the "best" neighborhoods in GR. But that, of course, is subjective. It all depends on what you're looking for. Looks like a fixer-upper and if you have the skills and desire an eclectic neighborhood, it's probably right for you. :-)

tenlow · 03-21-2008, 08:58 AM

Quote:

Originally Posted by allbusiness

Simply put, that's probably not what most people would call one of the "best" neighborhoods in GR. But that, of course, is subjective. It all depends on what you're looking for. Looks like a fixer-upper and if you have the skills and desire an eclectic neighborhood, it's probably right for you. :-)

Well what I consider a "good" neighborhood might be different than what other people would call it.

I just don't want to get shot or robbed. If I can reasonably assume those things won't happen, it's a good neighborhood.

My moving there is somewhat a leap of faith in itself, so I'm just gonna go and feel it out. If I like it, I'll stay. If not, not hard feelings, but California's not a bad place to not move away from.