Preparing For An Appraisal Before Listing Your Farmington Hills MI Home

Preparing For An Appraisal Before Listing Your Farmington Hills MI Home

Preparing for an Appraisal Before Listing Your Farmington Hills MI Home 

You’ve decided to put your Farmington Hills MI home on the market. Before listing your home, you may want to have it appraised. An appraisal is an unbiased, professional opinion of how much your home is worth. The results of the appraisal will help you determine the asking price for your home. Homeowners often get nervous about the appraisal process and what could end up hurting the appraised value of their home. 

Read on for some tips on how to best prepare for your appraisal: 

Make sure your home looks good from the curb  

Curb appeal is one of the most important aspects of preparing a home for sale and it’s also important when preparing for an appraisal.  Similar to neglected repairs, a home with little or no curb appeal can create a poor first impression for the appraiser and lower the value of your home. 

Houses with high curb appeal receive better appraisals, hands down. Start by walking around your home before the appraisal with a critical eye. Remove any clutter from both the front and backyards like stray toys, bicycles, and lawn furniture.

Also, look for any damage that could decrease your home’s value. Are there loose floorboards? Do the gutters work properly? Pay attention to things like overgrown shrubs and bushes, weed-filled flower beds, and damage to the exterior of your home. Be sure to also address any chipped or peeling paint.

While an appraiser won’t necessarily care what color your house is painted, they will pay attention to the condition of your paint. Chipped or peeling paint, especially on the exterior of your home, can be an invitation to wood rot and other structural issues.  

Take a look at comparable homes in your area

The market value of your home is largely determined by how it compares to similar homes in your area that have recently sold. Your Farmington Hills MI real estate agent will be able to pull information for you on recent closing sale prices in your neighborhood. 

This will provide valuable insight into how your home measures up. Before an appraiser even steps foot on your property, they’ll gather a list of comps to compare your home.

They’ll use the price of similar homes sold nearby, and adjust based on the features and qualities of your home. If homes in your area are selling with new hardwood floors, updated appliances, and fabulous curb appeal, you should consider taking on similar projects to fetch the same value. 

Inspect for potential safety issues around your home

As you prepare for an appraisal, you’ll want to inspect any potential safety issues in your home that could raise a red flag for an appraiser.  A few of the most common repairs that are cited in appraisal reports include peeling paint, missing handrails, and broken windowpanes.

 If you are unsure if you have any potential safety issues, an experienced Farmington Hills MI real estate agent can walk through the home and point out things that might be cause for concern during the appraisal.

Make some smaller home updates to your home 

Outdated décor can have a negative impact on an appraisal, while a more modern appearance can have the opposite effect.  Small things don’t add a lot in an appraisal, but they add up – giving the entire home the appearance of being modern and updated. 

Repaint the walls and hang new curtains. Install shiny new doorknobs or faucets. Update old countertops, paint cupboards, or reface them and replace old flooring, if you can. You’d be surprised how inexpensive flooring can be to replace, especially if you do it yourself.

Laminate flooring and tile will refresh a room, as will updating countertops, even laminate countertops. Keep the looks neutral and adaptable, yet modern.  

Give your home a deep clean 

Give your home a deep cleaning.  A home will appear to have more worth when it’s clean. Pay extra attention to areas that might not be part of your regular cleanings such as the inside of cabinets and the corners of ceilings.

Get rid of any scuff marks on the walls and shampoo your carpets to remove lingering stains or odors. Focus on the exterior of your home as well, such as cleaning out gutters, wiping down the outsides of windows, and even power washing the floor of your garage and the sides of your house.

A spic and span home inside and out looks newer and more attractive to both appraisers and buyers.

Compile a comprehensive list of upgrades

Be sure to inform your appraiser of any improvements you’ve made in your home within the last 4 years. New additions, replaced HVAC units, siding, gutters, a new roof, remodeled kitchens, and updated bathrooms will all positively reflect on your appraisal. Don’t assume the appraiser will notice every updated fixture or siding replaced.  

Make sure everything is in working order

Go through your property and ensure that everything is working how it’s supposed to. Makes sure any safety equipment installed is working properly like smoke alarms, carbon monoxide alarms, and home security alarms. 

Replace burned-out bulbs, turn on any pilot lights that you have switched off, and take care of anything else that suggests something might not be quite right. While an appraiser won’t go into as much detail as the inspector will, it’s best to show that everything is in good working order.

Look beyond your house to the surrounding area 

Are there new schools, parks, highway ramps, stores, or other public amenities that have been added since you bought the house? Point these out to your appraiser. The appraiser may not be totally familiar with the area and amenities such as these can add even more value to your home.  

Farmington Hills MI REALTOR -Tom Gilliam

When you are ready to list your Farmington Hills MI home, contact Farmington Hills MI REALTORⓇ – Tom Gilliam. Tom can help determine the market value of your home and make suggestions on how you can command a higher asking price.  

Tom is proud to be one of the most trusted real estate agents in Farmington Hills – offering his guidance and expertise to home buyers and sellers for the past 20 years. He understands that buying or selling a home is a significant financial and life decision and that you are looking for someone you can trust.

As your agent, Tom will protect your interests, advocate for you, negotiate on your behalf, and guide you towards a smooth and successful transaction. Get the process started today by contacting Tom Gilliam directly at (248) 790-5594 or you can reach him by email.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578 

Getting Your Farmington Hills MI Home Ready to Sell? 2021 Home Design Trends

Getting Your Farmington Hills MI Home Ready to Sell? 2021 Home Design Trends

Image: The Nordroom.com

Getting Your Farmington Hills MI Ready to Sell? 2021 Home Design Trends

If you have plans for selling your Farmington Hills MI home now or in the near future, we recommend that you be mindful of design choices when planning a remodel or redecorating. Selecting last years’ trending paint colors, fixtures, and finishes, for example, could cause your home to feel dated quickly. Also, over-personalized renovations that buyers may not resonate with could actually get you less money for your home, or cause it to linger on the market, which is never a good thing. 

Due to the pandemic, we’ve all spent a lot more time at home over the past year. For many of us, our homes have become our office, classroom, gym, and most importantly, our refuge during times of uncertainty. So, it’s no surprise to see that the hottest design trends for 2021 revolve around soothing color palettes, coziness, comfort, functionality over flash, and quiet retreats. 

People are really starting to think about how they function in their own homes more than what others are going to think walking into their homes. Instead, we are asking ourselves: What do I need? What makes me comfortable? What does my family need? The trends for 2021 and moving forward are about real lifestyle, not just flash.

The cozy comfort theme is being translated into colors, materials, and textures throughout the home. Cold grey and white minimalist color palettes are taking a backseat to warmer neutrals with pops of color and pattern throughout. People are also wanting cozier spaces with more separation and privacy and a dedicated space for working from home.

Homeowners are putting vacation budgets towards home improvements and creating their own staycation-worthy retreats. Bathroom trends for 2021 are all about easy-to-clean surfaces and hands-free components that minimize exposure to germs and maximize cleanliness. Enhanced outdoor living areas are also becoming increasingly popular. 

To help inspire your design projects, unlock the full potential of your Farmington Hills MI home, and maximize your investment, let’s take a closer look at some of the hottest design and remodeling trends showing up for 2021: 

1). Uplifting color pallets

This year, colors appear to be gravitating toward warm and happy shades that convey a sense of coziness, comfort, and wellbeing. Palettes are getting their inspiration from earthy hues, warm neutrals, and soothing blues and greens.

While white and gray are still the safe options they’ve been for the past several years, expect to see alternative neutrals becoming increasingly popular choices for cabinets, walls, and furnishings in 2021. For a fresh and sophisticated look, try one of these 2021 paint colors of the year:

  • Urbane Bronze (brownish-gray) by Sherwin-Williams
  • Aegean Teal (coastal blue) by Benjamin Moore
  • Soft Candlelight (muted yellow) by Valspar

Indigo, ruby, sapphire, and plum on the opposite end of the spectrum are showing up on everything from fabrics and home accessories to fireplace mantels and floating shelves. These classic rich hues can help bring warmth, depth, and a touch of luxury to your living space. Designers recommend using the “60-30-10 Rule” to incorporate these colors, which is a classic decor rule that helps create a pleasing color palette for an interior space.

The rule states that 60% of the room should be a dominant color, 30% should be the secondary color or texture, and the last 10% should be an accent. The 60% is the overall color of the room or the background color. The 30% number becomes the secondary color in your space and compliments the main color, but different enough to give the room interest. The final 10% is your accent color, which can be bolder or more subtle depending on the look you what to achieve. The accent color in the space can be showcased through artwork and accessories.  

2). Reimagined living spaces

The pandemic forced many of us to rethink our home design. From multipurpose rooms to converted closets to backyard cottages, we have had to find creative ways to manage virtual meetings and school. And designers expect these changes to impact the way we live and work for years to come. For example, some home builders are predicting the end of open-concept floor plans as we know them.

With many people working from home full-time, the need for compartmentalization is bigger than ever. Buyers are looking for cozier spaces with more separation and privacy. That means separate dining rooms, plenty of office space, and maybe even room for a bar or a home-gym. Parlor-style seating is also trending. The addition of alcoves, pocket doors, and sliding partitions that enable homeowners to section off rooms as needed are a popular and functional design trend.   

3). Dedicated work-at-home spaces

A study by Modsy, an online interior design service, revealed that working from home has already had a significant impact on home décor and design. Limited private space to work was the number one frustration of clients with their, often makeshift, home office work set up.  Creating a private, dedicated workspace has become a priority. The study found that home office design requests had increased by 40% in the past year.

As life gets back to the “new normal,” post-pandemic, it’s likely that many jobs will allow for remote employment, so home offices are here to stay. As a result, we will see more dedicated and private home workspaces, as opposed to makeshift desks. This may mean people will choose to move to larger homes in more remote areas for more space, or re-envision rooms as permanent home offices.

But, what if you don’t have a dedicated room? Alternative workspaces have also become increasingly popular. In fact, one of the biggest trends this year is the “cloffice,” essentially a spare closet turned home office. 

4).  Tranquil staycation retreats

With travel options limited right now, many homeowners are reallocating vacation budgets toward making their home a staycation-worthy retreat. In theory, vacations are relaxing and after a few smart decorating tweaks that cater to your senses, you can transform your abode into a tranquil retreat.

Most would agree that there’s something instantly relaxing about walking into a pristine hotel suite free of clutter. To create the same experience at home, you’ll want to address clutter first. Start by placing baskets at every entryway for shoes, and trays and hampers where messes collect.

You can also create a calm and serene environment by layering lighting throughout the space. Use floor and table lamps with neutral color shades, like white or beige, to evoke a sense of calmness. Next, consider the flow of the room, and rearrange furniture to create symmetry. The room will look and feel calmer because there are fewer pieces and objects to focus on. Lastly, Introduce accents in calm colors.

Opt for accent pieces like lamps, trays, and decorative objects in mellow shades of blue, green, lavender, or beige, or earth tones such as dusty yellow.  Carry those vacation-vibes into your bathroom with some of the top upgrades for 2021.

5). Contemporary easy-clean bathroom designs  

With 2020 came sheltering in place and, with it, a heightened awareness of the cleanliness of our homes. As hygiene continues to be top of mind, particularly in high-traffic environments like bathrooms, expect to see interiors with easy-to-clean surfaces and antimicrobial fixtures. 2021 bath trends include these items without sacrificing style.

Once seen as a futuristic and costly luxury, smart toilets and bidets are finding a prominent place in the post-pandemic home, according to the NKBA 2021 design trends report. Smart toilets have hands-free components, like self-closing lids and touch-free flushing, which reduce interactions with germy surfaces. Smart toilets eliminate the nooks and exposed plumbing of more traditional models, making cleaning the exterior easier as well.

Quartz dominated all other materials in the NKBA report, in which 74% of designers picked it as the top countertop material for the bathroom. Quartz countertops like Silestone easily keep up with the frequent cleaning that’s part of the new normal. Plus, quartz surfacing is non-porous and inherently less susceptible to harboring bacteria, an important trait in a damp environment. In line with today’s contemporary-leaning bath designs, these countertops have sleek profiles with few seams, which adds to their low-maintenance appeal.

6). Inviting outdoor living spaces  

Enhanced seating and outdoor comforts are both strong trends for 2021. The pandemic has elevated the importance of having private space just beyond your own doors.  According to a National Kitchen & Bath Association (NKBA) membership survey (NKBA looks at outdoor spaces, as well as indoor ones, and tracks trends for both categories), outdoor kitchens were the top project. Next were patios and decks. Screened porches and three-season rooms rounded out the top three.

The most requested features for enhanced outdoor living are expanded seating, fireplaces and firepits, and weather protection. When asked where residents prefer to set up their home offices, one of the most popular choices was at the back of the house with direct access to the yard or patio. Homeowners want to work with an outdoor connection. According to Houzz trend reports, pergolas have become a quick and affordable solution for homeowners looking to extend their usable living space outdoors.

Pergolas provide adequate shade for dining, lounging, and other outdoor fun and relaxation. Privacy is also an increasing priority. With the pandemic driving residents outdoors to exercise, meditate, rest, or recuperate, it’s a bigger issue than in the past. “The more private the spaces, the more desirable they are for homebuyers,” the report notes.

Are you contemplating a remodel? Preparing to put your Farmington Hills MI home on the market? Want to find out how upgrades could impact the value of your home? 

Partner with award-winning Farmington Hills MI REALTOR® – Tom Gilliam  

With over two decades of real estate experience working with buyers and sellers, Tom Gilliam provides the kind of knowledge, skills, commitment, and personalized service you need and deserve. Tom understands that selling a home is a huge financial and life decision and that you are looking for an agent you can trust to sell your home for top dollar. 

Tom will first visit your home and assess it in detail to provide an approximate valuation based on the age and condition of the home as well as nearby sales comparison data. Tom partners with some of the best professional home stagers in the area and will offer suggestions for preparing your home accordingly and make it available for showings. 

Tom will create a competitive marketing strategy that exposes your home to the public and other real estate agents through the Multiple Listing Service (MLS), other cooperative marketing networks, open houses for agents, and so on. Your listing will appear on all the most popular real estate sites where buyers spend hours a day looking at such as Realtor.com, Zillow, Trulia, REMAX, Redfin, and dozens of others. Your home will also be featured on Tom’s own highly-trafficked website homes2moveyou.com.

As your agent, Tom will hold open houses, communicate with prospective buyers, negotiate offers, and put out any fires that might erupt along the way. You can be assured that he will do whatever it takes to get your home sold quickly for top dollar. With an agent like Tom, the experience of selling your home is a very personalized and pleasant one.

If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give Tom a call at (248) 790-5594 or you can get in touch by email.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578 

 

 

 

Article Sources:

 

 

Selling Your Farmington Hills MI Home? Avoid These Mistakes

Selling Your Farmington Hills MI Home? Avoid These Mistakes

Selling Your Farmington Hills MI Home? Avoid These Mistakes 

Selling your Farmington Hills MI home can be surprisingly time-consuming and emotionally challenging, especially if it’s your very first time. With no experience and a complex, emotional transaction on your hands, it’s easy for first-time home sellers to make mistakes. However, with a little know-how, you can avoid many of these pitfalls. Read on to find out how to sell your house while getting the highest market price within a reasonable time frame – and without losing your mind.

Not keeping your emotions in check

Once you decide to sell your Farmington Hills home, start thinking of the transaction from a purely financial perspective. That way you can distance yourself from the emotional aspects of selling it. While your home is full of sentimentality and memories for you, a potential buyer will be looking at it quite differently.

Try to put yourself in the buyer’s shoes and examine the house’s attributes and imperfections. If you can remember that you are selling a piece of property as well as an image and a lifestyle, you’ll be more likely to put in the extra effort of staging and doing some minor remodeling to get top dollar for your home.

An agent can also help tone down the emotion of the process by interacting with potential buyers and eliminating those who only want to look at your property but have no real intention of making an offer. It may be hard to believe right now, but you’ll soon become just as attached to your new home as you were to your old one.

Not hiring a Farmington Hills MI REALTOR® 

An experienced real estate agent can help you at every stage of the home selling process. They are better-qualified to set the right price for the homes they list, better-equipped to market those homes, and likely to find a buyer in a shorter period of time than if you try to sell on your own. Marketing exposes your property to the public as well as to other real estate agents through a Multiple Listing Service, other cooperative marketing networks, open houses for agents, and so on.

In many markets, a substantial portion of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Real estate agents often use these cooperative relationships to benefit their clients. In addition, an agent will know when, where, and how to advertise, which medium, format, and frequency will work best for your home and your market.  Without an agent, you are the one responsible for showing the house and negotiating the sale with the buyer’s agent, which can be time-consuming, stressful, and emotional for a lot of people.

Not setting the right price  

The selling process generally begins with a determination of a reasonable asking price. One of the biggest mistakes to avoid when selling your Farmington Hills MI is overpricing it. A higher list price will not translate to more money in your wallet. In fact, the National Association of REALTORS® reported in 2020 that sellers typically sold their homes for 99% of the listing price while 38% reduced the asking price at least once.

Listing your home above market value can cause it to linger on the market and make buyers wonder why it hasn’t sold. Buyers see comparable homes in your area online every day and they know how long a house typically lasts on the market. Don’t worry too much about setting a price that’s on the low side, because in theory this will generate multiple offers and bid the price up to the home’s actual market value.

Underpricing your home can actually be a strategy to generate extra interest in your listing, and you can always refuse an offer that’s too low. Your real estate agent can give you up-to-date information on what is happening in your local market as well as the price, financing, terms, and condition of competing properties. These are key factors in marketing your home and selling it at the best price. Often, your agent can also recommend repairs or cosmetic work that will significantly enhance the salability of your property. 

Not being willing to negotiate on the asking price  

Any smart homebuyer will negotiate, and if you want to complete the sale, you may have to as well. Most sellers want to list their homes at a price that will attract buyers but still leaving some wiggle room for negotiations. The buyer then feels like they are getting good value while allowing you to get the amount of money you need out of the sale.

Be prepared to receive multiple offers if your home is priced right and don’t ignore any offers, even if it seems too low. Negotiate by making a counteroffer. Don’t be afraid to make a full-price counter offer if your price is competitive and it’s backed up by comparable sales. Whether you end up with more or less than your asking price will likely depend on whether you are in a buyer’s market or a seller’s market and how well you have prepared your home to sell.

Your agent can help you objectively evaluate every buyer’s proposal without compromising your marketing position and also help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Not investing in quality listing photos  

Since most buyers look for homes online these days, and many of those homes have photos, you’ll be doing yourself a disservice if you don’t have quality visuals of your home. If you do a good job, it will set your listing apart and help generate extra interest. Good photos should be crisp and clear and taken during the day when there is plenty of natural light available. They should showcase your home’s best assets. Consider using a wide-angle lens if possible—this allows you to give potential buyers a better idea of what entire rooms look like.

Ideally, hire a professional real estate photographer to get top quality results instead of just letting your agent take snapshots on a phone. And don’t just stop at photos. Consider adding a video tour or 360-degree view to further enhance your listing. This can be easily done with any smartphone. You can certainly entice more potential buyers into walking through your doors for showings. You may even get more offers if you give them an introductory walk-through of your property. 

Not disclosing problems with your property

You really can’t get away with hiding problems with your property because they will get uncovered during the buyer’s inspection. Basically, you have three options to deal with any issues: fix the problem ahead of time, price the property below market value to account for it, or list the property at a normal price and offer a credit for the issue. Not fixing the problem ahead of time, however, could eliminate a number of potential buyers who are looking for a turnkey home.

Having your home inspected before listing it is a good idea if you want to avoid costly surprises once the home is under contract. Many states have disclosure rules and some require sellers to disclose known problems about their homes if buyers ask directly, while others require that sellers must voluntarily disclose certain issues.

Not preparing your Farmington Hills MI home for sale

Sellers who do not clean and prepare their homes for sale will have a harder time getting them sold fast for the best price. You want your home to be in the best condition possible. Take care of major defects like broken windows or a leaky roof that could discourage buyers.  If you haven’t attended to minor issues, such as a dripping faucet or broken doorknob, a potential buyer may wonder whether the house has other, more expensive issues that haven’t been addressed either.  Anything that’s obviously broken gives potential buyers a reason to submit a lower offer.

Thoroughly cleaning, decluttering, putting a fresh coat of paint on the walls, and getting rid of any odors (litter box) will help you make a great impression on buyers. In addition, you might consider hiring a professional to stage your home for showings or ask your real estate agent for help or ideas. According to the Real Estate Staging Association, homes that are staged before going on the market sell 73% faster, on average, than their non-staged counterparts.

Virtual staging apps such as Ro0omy, VisualStager, BoxBrownie allow you to stage a home digitally, then use the photos in your listings or other marketing material. Remember, you only get one chance, and sometimes only three seconds or so to make a great first impression, so make it count.  

Not estimating your costs to sell

Depending on the price range of the home, be ready to spend 9% – 10% of the sale price on selling costs, including the real estate agent commission and closing costs. Be sure to budget ahead of time for the additional costs involved with selling your home so that you will be ready when the time comes to close the deal. The main types of fees to plan for include:

  • Staging and prep fees (anywhere from a couple hundred to a couple of thousand dollars)
  • Real estate agent commissions (5.8% national average)
  • Inspections and repairs (varies)
  • Closing fees (1% – 3% of the sale price)
    • Title fees
    • Transfer or excise taxes
    • Escrow fees
    • Reconveyance fee
    • Recording fees
    • Prorated property taxes
  • Seller concessions (2% – 6%)
  • Overlap costs (1% – 2%)
  • Moving and relocation costs (varies)
  • Mortgage payoff (varies)

Your real estate agent deals with transactions every day and will be able to give you a very close estimate of seller closing costs.

Not selling to qualified buyers  

It’s more than reasonable to expect a buyer to bring a pre-approval letter from a mortgage lender or proof of funds(POF) for cash purchases to show that they have the money to buy the home. Signing a contract with a buyer may be contingent on the sale of their own property, which may put you in a serious bind if you need to close by a particular date. An unconditional offer is when the buyer does not place any conditions on their offer. This is often preferred by sellers as it is an easier option and the sale can proceed quickly.

The takeaway

Selling your home will likely be one of the biggest transactions of your lifetime. An experienced Farmington Hills MI REALTOR like Tom Gilliam can get broader exposure for your property, help you negotiate a better deal, dedicate time to your sale, and prevent your emotions from sabotaging it. An agent brings expertise to a complex transaction with many potential financial and legal pitfalls.  

Partner with award-winning Farmington Hills MI REALTOR® – Tom Gilliam   

Tom Gilliam is proud to be a trusted REALTOR® in Farmington Hills MI for the past 20 years – offering his guidance and expertise to home buyers and sellers. He understands that buying or selling a home is a significant financial and life decision and that you are looking for someone you can trust. As your agent, Tom will protect your interests, advocate for you, negotiate on your behalf, and do whatever it takes to ensure a smooth transaction and the best results possible. 

Tom works hard for his clients and provides the kind of knowledge, skills, commitment, and personalized service you need and deserve when buying or selling a home. Get the process started today by reaching out to Tom Gilliam directly at (248) 790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578 

Factors That Influence Your Farmington Hills MI Home Value

Factors That Influence Your Farmington Hills MI Home Value

Factors That Influence Your Farmington Hills MI Home Value – When selling your Farmington Hills MI home, setting the right list price requires both assessing nationwide housing market trends and knowing what’s going on in your local market.

The truth is that no matter how highly you value your own home, there’s no guarantee that it’s actually worth as much as you may want to get for it.

That is why you want the assistance of a qualified Farmington Hills MI real estate agent who not only keeps their finger on the pulse of the market at all times but is actively selling homes in your local area.

Get A Free Comparative Market Analysis of Your Home

An experienced and skilled agent like top Farmington Hills MI REALTOR® – Tom Gilliam understands how to gather and evaluate all of the hard data that’s key to getting your home sold fast and for the highest market price.  

Here are three important macro factors that influence the value of your Farmington Hills MI home:

1). Inventory, or months of supply

Inventory, or months of supply, is the calculation of how long it would take for currently listed homes to sell out. For example, 100 homes sell every month and there are 600 homes on the market, which equals a six-month supply of inventory.

In most markets, a six-month supply is considered a balanced market, meaning that there is an equal ratio of buyers to homes for sale. Markets with a below six-month supply are considered low inventory, meaning there are more buyers than available homes, making for seller’s market conditions.

Above a six-month supply and you’ve got buyer’s market conditions, where there are more homes listed than there are buyers house hunting. So what does inventory or monthly supply have to do with home values? It’s simple.

High demand and low supply push prices up. Low demand and high supply puts downward pressure on prices, and vice-versa in a seller’s market when homes are in tight supply.  

Even if your home is in excellent condition, situated in the best location, and filled with premium upgrades, the number of other properties for sale in your area, and the number of buyers in the market can impact your home value.  

Home buyer’s in a buyer’s market will likely have more wiggle room to negotiate on the home’s price, timeline, and contract contingencies.  Sellers in a buyer’s market may have to adjust the price to attract more offers or be willing to make concessions to a buyer, like covering repairs, paying closing costs, or being more flexible with the timeline. 

2). Interest rates 

It might appear on the surface that interest rates would matter more to home buyers, but interest rates can also impact sellers when it comes to home values. If interest rates increase, fewer people may be able to afford homes, and this can impact how much you can sell your home for. 

The easiest way to understand this is through the basic principle of supply and demand. A lower interest rate allows more of the buyer’s monthly payment to go toward the principal, which means they can afford to buy a higher value home. A higher rate means a higher mortgage payment, which reduces the purchase price they can afford. 

For example, a buyer can afford a $500,000 home at a 4% interest rate. If they can only get a 5% mortgage rate, that’s an extra $50,000 going toward interest instead. That means that the buyer can only actually afford a $450,000 home at that 5% rate.

A 1% rate increase will up the cost of the house by 10%. The higher interest rates rise, the fewer buyers there are who can afford to buy a house. If buyers drop out of the market, inventory levels rise and home values fall.

3). Market cycles and consumer behavior 

Staying on top of current market trends can help in predicting the future of home values. The Federal Housing Finance Agency tracks these trends among single-family house prices with the House Price Index. And while home values historically trend upward, they’re known to fluctuate or fall in the short term.

When home prices start to fall, many buyers will wait out the market and watch the downward trend. When home buyers wait out the market there are fewer active buyers, which leads to higher inventory and lower home values.

That is why you want to partner with a reputable Farmington Hills MI REALTOR® and local expert who really understands the trends in your area. Recent trends within the last four to five months can greatly impact your home’s value. What goes down, must come up when it comes to real estate. And if your home value has recently decreased, analyzing home value trends can indicate how long it could take for it to rise again.

The takeaway

It’s easier to avoid common home-selling mistakes and price your home correctly from the get-go by being aware of the factors that impact your home’s value such as interest rates, supply and demand, and market cycles. Consider these important macro factors when pricing your home to help attract serious buyers and prevent your home from lingering on the market and becoming a stale listing, which ultimately comes at a cost.  

Partner with top-rated Farmington Hills MI REALTOR® – Tom Gilliam

Whether you are interested in buying a home in Farmington Hills, MI, or its time to list your current property, experience matters most in a changing market. Top-rated Farmington Hills REALTOR® – Tom Gilliam offers over 20 years of local experience, in-depth market knowledge, and access to the most up-to-date listings for Farmington Hill MI homes for sale.

Known for his professionalism and care for every detail, Tom is an expert at uncovering the perfect home for his clients’ lifestyle needs in the right neighborhood or community. 2020 Best of Farmington Hills REALTOR - Tom Gilliam

If you are ready to sell your home, Tom will create a comprehensive marketing plan that exposes your home to the public as well as to other real estate agents through the Multiple Listing Service (MLS), other cooperative marketing networks, open houses for agents, etc.

Your listing will appear on all the most popular real estate sites where buyers spend hours a day looking at homes such as Realtor.com, Zillow, Trulia, REMAX, Redfin, and dozens of others.

Your property will also be featured on Tom’s own highly-trafficked website Homes2moveyou.com. You can be assured that your home will get sold quickly and for the highest market price.

Farmington Hill MI Homes for Sale

Tom works very hard for his clients. He will be there to protect your interests, advocate for you, negotiate on your behalf, and do whatever it takes to ensure a smooth and successful transaction.

If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give top-rated Farmington Hills MI REALTOR® – Tom Gilliam a call today at (248) 790-5594 or you can reach him here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

 

Why You need a Farmington Hills MI Real Estate Agent When Selling Your Home

Why You need a Farmington Hills MI Real Estate Agent When Selling Your Home

Why You need a Farmington Hills MI Real Estate Agent When Selling Your Home – Selling your Farmington Hills home will likely be one of the biggest transactions of your life. That’s why hiring an experienced and skilled Farmington Hills MI real estate agent should be the first step you take once you’ve decided to put your home on the market. A qualified agent can get broader exposure for your property, help you negotiate a better deal, dedicate more time to your sale, and help keep your emotions from sabotaging the deal. 

An agent brings expertise, which few home sellers have, to a complex transaction with many financial and legal pitfalls. Anyone who has ever attempted to sell a home on their own without an agent will tell you that it’s hard work, time-consuming, and also risky if you don’t know what you’re doing. You can easily set yourself at a huge disadvantage. 

A qualified Farmington Hills MI real estate agent will be able to give you up-to-date information on what is happening in your marketplace, as well as the price, financing, terms, and condition of competing properties in your area – all key factors in marketing your home and selling it at the best price. Your agent can also recommend repairs or cosmetic work that will significantly enhance the salability of your home.

Getting The Best Price for Your Home

Pricing your home correctly from the beginning is important and knowing the right value of your home can help you secure the best price. Your Farmington Hills MI real estate agent can help you evaluate the market and resist the temptation to overprice your home or give in to your fears that it won’t sell fast enough and underprice it.

According to the National Association of REALTORS®, if a home doesn’t sell within 30 days, it’s a good indication that it’s not priced right. Research also suggests that the longer a house stays on the market, the lower its final selling price will be. Sellers may end up making less money than if they would have priced their property correctly when it first listed.  

One of the best indicators of your home’s value is the sale prices of similar homes in your neighborhood that have recently sold. These comparable homes are often referred to as comps. Experienced real estate agents rely on comps and will consider ballpark parameters such as homes in the same location, homes that are the same size, homes with the same number of bedrooms/bathrooms, the sale price of similar homes that were sold within the past six months to a year, and similar home styles, views, and other details.

Marketing Your Home

A skilled and experienced Farmington Hills MI real estate agent will create an aggressive marketing strategy that exposes your home to the public as well as to other real estate agents through the MLS or Multiple Listing Service, other cooperative marketing networks, open houses for agents, and so on.

In many markets, a substantial portion of real estate sales is cooperative sales where a real estate agent other than yours brings in the actual buyer. Even if you have a large personal or professional network, those people will likely have little interest in spreading the word that your house is for sale.

You don’t have relationships with clients, other agents, or a real-estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate to waiting longer to sell your home and possibly not getting as much money as your house is worth.

Seller’s Disclosures

A lot of legal paperwork is involved in selling a home, which needs to be completed correctly by an expert. One of the most important items is the seller’s disclosures. “A seller of real estate has an affirmative duty to disclose any fact that materially affects the value or desirability of the property,” says Matthew Reischer, an attorney and CEO of LegalAdvice.com. The seller can be held liable for fraud, negligence, or breach of contract if he/she does not disclose properly.  

Unless you are a real estate attorney, your Farmington Hills MI real estate agent probably knows a lot more about disclosure laws than you do. If you fail to disclose a hazard, nuisance, or defect and the buyer comes back to you after moving in, the buyer could potentially sue you. Yes, agents do sometimes make mistakes, but they have professional errors-and-omissions insurance to protect themselves and to give the buyer recourse, so the buyer may not need to pursue the seller for damages.

Resolving Issues  

Between the initial sales agreement and closing, issues may come up that may prevent buyers from closing the deal during this period. Pest damage, low appraisals, claims to title, and defects in the home inspection may slow down closing. There may be cases where the buyer or seller may get cold feet or financing may fall through. 

Other issues that can delay closing include homes in high-risk areas or uninsurability. There may be problems with the good faith estimate, or other errors may prevent closing. The required paperwork alone can be quite overwhelming for most sellers. Your Farmington Hills MI real estate agent is the best person to help you resolve these issues and move the transaction to settlement. 

The Takeaway

When selling your Farmington Hills MI home, you need to partner with a qualified real estate agent who knows the area, processes a vast network of local connections, and has the skills and experience to negotiate like a pro. Considering the relatively small cost of hiring a professional agent and the potential risks and pitfalls of not hiring one, it only makes good sense to work with a highly-skilled Farmington Hills MI real estate agent like Tom Gilliam to sell your home fast and for the best price. 

Partner With Top-rated Farmington Hills MI Real Estate Agent – Tom Gilliam

For over a decade, Tom has been helping his seller clients with their real estate goals in Farmington Hills and Oakland County, MI. After listening to your concerns and goals, Tom will start with a comparative market analysis to establish the correct price for your home. He will then execute a comprehensive marketing plan to get your home in front of as many qualified buyers as possible.

Your listing will be on all the most popular real estate sites where buyers spend hours a day looking at homes such as Realtor.com, Zillow, Trulia, REMAX, Redfin, and dozens of others. Your home will also be featured on Tom’s highly-trafficked website:  homes2moveyou.com.

Tom provides the kind of knowledge, skills, dedication, and personalized service you need and deserve when selling a home. He understands that frequent and open communication is paramount to a smooth and successful transaction and is always available to his clients. Tom will be there to protect your best interests, advocate for you, negotiate on our behalf, and will go the extra mile to ensure the best possible outcome – leaving no money on the table.    

If you or someone you know is interested in buying or selling real estate in Farmington Hills MI or in surrounding Oakland County, please give Tom Gilliam a call today at (248) 790-5594. 

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

How Much is My Farmington Hill MI Home Worth? 6 Factors That Influence Home Value

How Much is My Farmington Hill MI Home Worth? 6 Factors That Influence Home Value

How Much is My Farmington Hill MI Home Worth? 6 Factors That Influence Home Value: Determining the appropriate asking price for your Farmington Hills MI home is vital for a successful sale. Even if you have experience in the Farmington Hills / Oakland County MI real estate market, home prices can differ substantially from initial evaluations. Effective home valuations make the home selling process faster and less stressful, and knowing the right value of your home can help you secure a better deal. 

 Get a Free Home Valuation Now!

It’s easier to avoid common home selling mistakes when you are aware of the factors that influence your home’s value, and pricing your Farmington Hills MI property correctly from the beginning is key. If you overprice your home, you could lose potential buyers that are actually in your price range. Your home will not be attractive to buyers in the higher price range compared to other similarly priced homes they are viewing.

The last thing you want is to have your property linger on the market and can create the vibe among buyers that there’s something wrong with it, otherwise known as a “stale listing.” Pricing your home too low may cause it to sell fast, but for less money than you would have received if priced at market value.  

Six key factors to consider when pricing or valuing Farmington Hills home for sale include comparable homes (comps), quality of the neighborhood, the market, nearby features, size and appeal, and age and condition of the home: 

1). Comparable Homes or “Comps”

One of the best indicators of your home’s value is the sale prices of similar homes in your neighborhood that have sold recently. These comparable homes are often referred to as “comps.” Most real estate experts will rely on comps to estimate a home’s value and will consider recency, similarity, distance, and location: 

  • Recency – homes that were sold recently or within the last 90 days
  • Similarity – homes that are most similar to your property in terms of features such as year built, two-story vs. ranch, number of bedrooms, bathrooms, basement, square footage   
  • Distance – homes in the same subdivision or sold within a one-mile radius of your property
  • Location – homes with the same placement such as on a busy street, cul-de-sac, golf course, or waterfront.

Agents will look into the difference between each comp’s listing price, and the price it sold for. Your agent will also rely on inside knowledge of housing inventory and the local market. That nuanced understanding is invaluable, particularly when measuring the unique aspects of your home with raw data about comps. They find these homes using the multiple listing service (MLS), a regional database of homes that agents pay dues to access. 

2). The Neighborhood

The neighborhood where the house is located will have an impact on a home’s value, responsible for both qualitative and quantifiable aspects of a home’s appeal. For example, school quality significantly affects home values and families often choose the location of their next home by where their children will go to school.

According to the National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20.  

On the other hand, if your property is the only house on the block that’s in great condition, or there are neighbors that have unkempt lawns, or other visual disturbances, then the value of your home could decrease. According to the Appraisal Institute, a bad neighbor could potentially reduce your home’s value by up to 10%. This sort of effect is referred to as external obsolescence, where external factors have an effect on your home’s value, instead of factors on your property that can cause a decrease.

3). The Local Market

The current state of the housing market will have an impact on your home’s value. Home prices are shaped by supply and demand and may fluctuate based on subtle changes in your area’s economy. Even if your home is in excellent condition and in a stellar location, the number of other properties for sale in your area and the number of buyers in the market can impact your home’s value.

If you’re buying in a buyer’s market, you’ll likely have more room to negotiate on the home’s price. If you’re selling in a buyer’s market, you may have to adjust the price to attract more offers or be willing to make concessions to a seller, like paying closing costs, covering repairs, or being more flexible with the timeline.

4). Home Size and Appeal

When estimating a home’s market value, size is an important element to consider, since a bigger home can positively impact its valuation. The value of a home is roughly estimated by price per square foot  (the sales price divided by the square footage of the home). For example, a 2,000 square foot house that sold for $200,000, the price per square foot would be $100. However, the price buyers will pay per square foot can vary greatly depending on the location of the home.

Usable space also matters when determining a home’s value. Garages, attics, and unfinished basements are generally not counted in usable square footage. Bedrooms and bathrooms are most highly valued, and the more beds and baths your home has, the more it will typically increase in value.

5). Home Age and Condition

In addition to size and appeal, you’ll need to think about the home’s age and condition. Typically, homes that are newer will sell for more than older homes because they will typically require less maintenance. Critical components like electrical, plumbing, appliances, and roofing are less likely to need repairs or replacement and can translate to savings for a buyer.

However, an older home that’s been well-maintained may sell for just as much as a newer home. Condition matters. A home’s foundation, structural integrity, electrical work, plumbing, and fixtures are all items worth considering.  

6).  Location in Relation to Nearby Features

Location can be more important than even the size and condition of the house when determining how much value to assign based on the location of the property. According to Inman, there are three primary indicators when assigning value: the quality of local schools, proximity to employment opportunities, and proximity to shopping, entertainment, and recreational centers.

These factors can influence why some neighborhoods command steep prices and why others that are only a few miles away don’t. In addition, a location’s proximity to highways, utility lines, and public transit can also impact a property’s overall value. 

Keep the above factors in mind when pricing your home to help attract serious buyers and to prevent long days on market, which ultimately come at a cost. Even after the listing date, price should be an ongoing discussion between you and your agent. Markets are fluid, so you may have to make some tweaks when all is said and done.

Ready to Sell Your Farmington Hills MI Home? Partner with Top-rated Farmington Hills MI REALTOR – Tom Gilliam

Top-rated Farmington Hills REALTOR® – Tom Gilliam has over two decades of experience helping home buyers and sellers realize their dreams in Farmington Hills MI and the surrounding Oakland County area. Tom offers in-depth local market knowledge and employs the latest technology and the most cutting-edge approaches to marketing your home to get it in front of as many qualified buyers as possible.

You can be assured that Tom is 100% committed to getting your home sold as quickly as possible and for the highest market price. For more information about buying or selling Farmington Hills MI real estateplease contact Tom directly at (248) 790-5594 or get in touch with him here!  

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

 

Pin It on Pinterest