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

 

Increase Your Farmington Hills Michigan Homes Value

Increase Your Farmington Hills Michigan Homes Value

When selling your home, you want to do everything in your power to do things that will increase your Farmington Hills Michigan homes value and get you the highest offer possible, makes since right? You may think doing major renovations are the way to go, but sometimes it’s the smallest less expensive things that will add the most value to your home and bring you the best offer possible.

Here are 4 small and inexpensive ways to increase your Farmington Hills Michigan homes value to get the best offer possible.

  • Clean Up the Exterior

Many homeowners in Farmington Hills Michigan focus on the interior of their home when selling, but remember the exterior will give the homes first impression when a potential buyer walks up for a showing. It’s important to make a positive first impression that will last throughout the potential buyers visit.

It is not necessary to completely re-landscape the entire outside of your Farmington Hills Michigan home, but a few minor changes can truly make a difference in what potential buyers may see. Putting a fresh coat of paint on the front door can leave the looking inviting and clean along with cleaning up the front porch and having a small table and chair (if there is room) can make your home inviting and warm.

It is important especially in the winter season to make sure your walk-way is clear of snow and ice to insure the safety of your visitors and to prevent your home from becoming tracked and wet from an un-shoveled walkway.

  • Add a Fresh Coat of Paint

One of the most inexpensive ways to increase your Farmington Hills Michigan homes value is a simple natural fresh coat of paint to rooms that look worn or faded. Peeling and worn paint in your home can make the home look older and stressed to a potential home buyer.

When choosing colors try to avoid white, it can make the home feel cold and uninviting making it impossible for the potential home buyer to see themselves living there, instead use natural colors such as beige or even gray to give the rooms a natural and inviting feel. Avoid at all cost bright and unique colors as this can be a turn off and un-soothing to your potential buyer.

  • Update The Bathrooms

To truly increase your Farmington Hills Michigan homes value and net in the best offer possible is to have a look at the bathrooms. Simple hardware updates can make a difference between capturing a potential buyer’s interest in your home or completely losing them when bathrooms are concerned.

If the bathrooms have wallpaper consider removing it and painting it instead as these days wallpaper can look like extra work for the potential buyer and could reflect on the purchase price they offer. Updating fixtures, lights and maybe counter tops can truly increase your Farmington Hills Michigan homes value. Nothing can be worse than an out of date bathroom, but with a little inexpensive work can truly make a difference that will pay off in the long run.

  • Hire A House Cleaning Company to Increase Your Farmington Hills Michigan Homes Value                                                                                       Increase Your Farmington Hills Michigan Homes Value

This may be a challenge for many Farmington Hills Michigan home owners to wrap their heads around, but could one of the best value adds to increase your Farmington Hills Michigan homes value. A fresh set of eyes on the things that you may not see as far as a sparkling clean home can be the difference between great offers and low or none at all.

Everyday living in the home can cause us not to see the dust bunnies, stains, odors and grime that may be present that the potential buyers may see. A cleaning service can come in and clean in places we never thought of before and leave a lasting impression on buyers as they love a clean and fresh home, remember they are wanting a fresh new place to call home, not a home that is worn and dirty. Think of it this way, when you purchase a new car it is clean and freshly washed when you take delivery, same goes for a new home for a potential buyer.

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