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. 

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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

 

SOLD! Checklist For Selling Your Farmington Hills Home

SOLD! Checklist For Selling Your Farmington Hills Home

As a Farmington Hills homeowner, the selling process can be an overwhelming experience – especially for first timers. Since they’ve never been through the experience of selling a home, many homeowners feel a bit lost as to what they need to do before they can pass their keys over to the next owners. But not to worry! Here’s a checklist for selling your Farmington hills home that covers all the essentials for homeowners getting ready to sell their first property:

Sprucing Things Up

Before homeowners list their home, they will want to handle any minor fixes that might keep them from getting top dollar for their property and spruce things up to make the home more attractive to potential buyers. Some of the important things on the checklist for selling your farmington hills home are:
While every home is different, some areas that homeowners will want to revamp before listing their home include:

Painting

Painting is a relatively easy and inexpensive fix, but it can really make a difference in how a home presents. Before listing, homeowners should plan to refresh both the exterior and interior paint.It also helps to use neutral colors when repainting a house that’s about to go on the market. Bold colors can be off-putting or distracting to potential buyers. Using neutral colors like white, beige, or gray, will help potential buyers see the property, not the paint.

Checklist For Selling Your Farmington Hills Home (Landscaping)

The first thing potential buyers will notice when viewing a home is the landscaping. If the yard is in shambles or there are human-sized weeds sprouting from every corner, it can be a deal breaker so follow this short checklist for selling your Farmington Hills Home based on landscaping.

Investing in landscaping upgrades will add to a property’s curb appeal and can help land a higher selling price. If the outdoor area hasn’t been landscaped, adding flowers, small trees and greenery can go a long way. If the property already has a garden, cleaning the area up (including raking, pruning and adding additional plants to fill in any visible gaps) will suffice.
Cosmetic Repairs
If there are minor and/or inexpensive repairs that need to be done to the property, it can be helpful for the homeowners to take care of them prior to listing. Small repairs, like steam cleaning the carpets or fixing a leaky shower, are quick, easy and inexpensive fixes, but can make a big difference when showing the home.
While homeowners will want to leave more major repairs and remodels for the potential buyers, cleaning up small problems will yield big results when they put their home on the market.

Staging

It’s important for homeowners to stage their home in a way that’s appealing to potential buyers and is part of the checklist for selling your Farmington Hills home. Staging can either be done with the help of a checklist for selling your farmington hills home-staggingprofessional organizer and decorator or independently, but proper staging should include:

      • Decluttering the home
      • Removing any personal items
      • Reorganizing, rearranging and/or removing furniture to make the home feel more open and spacious
      • Thoroughly cleaning the home

Arranging the home to highlight the property’s best features (for example, pulling back curtains to showcase a gorgeous view or moving any furniture that blocks interesting architectural details)
Adding decorative items to enhance the space

Staging a home in a way that appeals to buyers can have a huge impact on the selling process. Professional stagers typically cost a few thousand dollars, but if homeowners want to save the extra cash, HGTV has some great tips on how to best stage a home for maximum impact

Choosing An Farmington Hills Agent

Once the property is ready to be shown to potential buyers, it’s time to find an agent.Choosing the right real estate agent in Farmington Hills is HUGELY important, particularly for first time sellers. Having the right real estate agent representing the property can mean the difference between a quick, painless and positive selling process and a long, drawn out nightmare.When choosing a real estate homeowners should consider:

Does this agent specialize in this type of property and in this area?
Whenever possible, homeowners should work with an agent who possesses a wealth of knowledge and experience selling the type of property they’re looking to sell within their market.

Different types of properties and different markets have different nuances, and working with an agent who understands those nuances can help homeowners sell their home quicker and for a higher price than working with an agent who isn’t as knowledgeable.

What’s the agent’s track record?
One of the best predictors of future success is past success. When choosing a real estate agent, homeowners should ask what their track record of success is. How many homes have they sold in the past year? What’s the average time their properties stay on their market? What percentage of their deals come in at the asking price or above?

Understanding a real estate agent’s past performance can help homeowners understand what they might expect during the selling process and helps to set up proper expectations for both the homeowners and the agent.

What’s the agent’s plan for selling the property?
Homeowners should also ask what their Farmington Hills agent’s plan is for selling the property. What marketing channels will they leverage to make sure the property gets in front of the right people? How aggressively do they plan to market the property? What’s their backup plan should they not be successful with their typical marketing strategies?

It’s an agent’s job to sell a property, but there are many ways to do that. Homeowners will want to find out upfront what their agent’s plan is to make sure it’s in line with what they’re looking for.

Selling a property can be overwhelming for first time sellers. But by following the steps in this checklist for selling your Farmington Hills home, homeowners can benefit from these steps to help in selling their home quickly, easily and with as little stress as possible.

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Timing Your Farmington Hills Home Sale

Timing Your Farmington Hills Home Sale

Hardly anyone decides to put their own Farmington Hills house up for sale without wondering whether there wouldn’t be a better time to do so. There are a couple of different ways to look at the timing your Timing Your Farmington Hills Home Sale clockFarmington Hills home sale—but only one of them is controversial. Timing your Farmington Hills home sale is very important in this tight market when inventory is low and prices are soaring, the process should begin as soon as your ready.

Timing Your Farmington Hills Home Sale Can Be Controversial

Controversial: timing by the calendar. A good number of real estate commentators think that the optimal timing your Farmington Hills home sale is during the spring/summer season. In the residential real estate lexicon that’s the “peak selling season.” Statistics validate their point. Since the majority of transactions are in fact initiated during the good weather months when the sun shines the longest, it might seem to make the most sense.

The controversy arises when it’s pointed out that this notion is so commonly held that timing your home sale to list it during the peak puts you in competition with many more sellers. Peak season proponents don’t think that’s a problem since there are also more buyers in the market. Naysayers counter that house-hunters in poorer weather are demonstrating that they are more committed—by definition, they are better prospects. And so on—and on. The argument isn’t likely to be settled any time soon.

Non-Controversial: timing by your personal calendar. This argues for disregarding the wall calendar in favor of letting your personal situation dictate the timing your Farmington Hills home sale. Financial commentators make the argument that when your home no longer fits your lifestyle, that’s all the timing you need to pay attention to…if your financial ducks are in a row. The seasonal timing debate can be argued either way, but almost everyone agrees that the underlying economics should dictate the final word on timing.

Once your debt situation is in control, and you’re confident that you can afford the move to your next house, the only timing issue remaining is allowing enough of it to bring your current Farmington Hills home up to prime showing condition. Whenever your personal situation aligns to suggests it’s time to start thinking about selling, one timing element I can heartily suggest is to give me a call. We’ll have a no-obligation discussion about if and when to get the ball rolling

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