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They are what they are. If you find a low priced property in this tough Michigan Real Estate market it’s for a reason. In most cases the property has been offered at higher prices only to be lowered time and time again due to lack of buyers. When you enter one of these transactions you first need to know the definition of market value that appraisers use and second apply some common sense.

First: An appraiser’s definition of market value is “the most probable price a property should bring in a competitive and open market under all conditions for a requisite sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus.”

Second: The common sense is that if the seller is willing to offer at a low asking price and/or accept a low offer it is because it’s the best offer/price they could get. Thus, it would automatically represent the most probable price a property should (in this case, could) bring in a competitive and open market.

Buyers that think they are getting a great deal and deserve an appraisal for a lot higher then there purchase price are not accepting the conditions of this current real estate market. If you have paid what you consider a low price for a property, you have found the declining market. You have not bought at a great price, you have bought at market value for this time. The great deal comes in when the market comes back these properties purchased at low prices should see the fastest appreciations. But, for right now you have purchased at a fair market value for this tough Michigan Real Estate market.