Fact: In 2004, 49% of the homes that were listed in the Macomb County Board Multiple List Service sold.

Fact: In 2005, 33% of the homes that were listed in the Macomb County Board Multiple List Service sold.

Fact: In the first 3 months of 2006, 19% of the homes listed have sold, compared 27% during the exact same time period one year ago.

Fact: It is a buyer's market!

Fiction: When you're offering to buy a house, you can offer 20% less than the asking price.

Fact: You will insult the sellers and they will most likely refuse to negotiate with you.

Here's the story: I went to appraise a home yesterday. A very nice one. Almost 2,600 square feet, four bedrooms, 2 1/2 baths, nice neighborhood, newer home. In the complete analysis, I calculate several ways of pricing the home. It helps the seller see the range that their home can be listed in and will most likely sell in. There is the price-per-square-foot method, the State Equalized Value Method, the appreciation method, the available listings method, the sold listings method, and the expired listings method.

The buyer's market is most plainly seen using the appreciation method to calculate value. This owner has been in the home for 8 years. According to a 5% appreciation over 8 years, the home should be priced at $348,000, and should sell within 3% of that. In a good market, I could have expected a 6-8% appreciation rate. In this market, though, the home really should be priced at $325,000 or below. It may sell lower, yielding for the seller, a 3.5-4% appreciation rate over 8 years. THIS is the buyer's market. The seller has already taken the hit, by having to offer the house at $325,000. In a luke-warm market, this home would sell for $23,000 more. Will the owner expect a full price offer? The owner has every right to expect an offer very close to asking price.