8 Key Factors That Can Influence Your Farmington Hills MI Home Value

8 Key Factors That Can Influence Your Farmington Hills MI Home Value

8 Key Factors That Can Influence Your Farmington Hills MI Home Value

Trying to price your Farmington Hills MI home accurately when preparing to sell it can be challenging. Key factors to consider when pricing your home include historical sales price, neighborhood & location, the market, the economy, home size & appeal, home age & condition, home upgrades & updates, and comparable homes (comps).

Here are 8 key factors that can influence your home’s value:

1. Historical Sales Prices

One of the first things appraisers, real estate agents, and prospective homebuyers look at is the historical sale price of the property. For example, If the property has been sold three times in the past three years, for $250,000, $255,000, and $253,000, it seems reasonable to start at a valuation of around $250,000 and make adjustments based on any new additions or changes to the property.  

2. Neighborhood & Location

Neighborhood and location will influence a home’s value. According to Inman, school system quality and home prices tend to be strongly correlated. Whether home prices influence school system investment or whether quality schools influence home prices, either way, school quality can significantly affect home values. 

Similarly, crime rates are negatively correlated with home values in the neighborhood. Homes that offer proximity to amenities like shopping, restaurants, everyday conveniences and recreation, and offer easy access to major highways tend to sell for more money than homes that are situated far away from everything.  

3. The Market

The current state of the housing market will also influence a home’s value. Home prices are shaped by supply and demand and may fluctuate based on subtle changes in your area’s economy.  If there are a lot of buyers competing for fewer homes, it’s referred to as a seller’s market.

Conversely, a market with few buyers, but with many homes on the market, is referred to as a buyer’s market. In a seller’s market, homes tend to sell quickly, whereas in a buyer’s market it’s typical for homes to see longer days on market (DOM). 

4. The Economy

When the economy is unstable, people worry about rising prices and getting laid off with little hope of finding another job. Missed mortgage payments lead to defaulting on your loan, losing your house, and long-term credit damage. People who are worried about losing their homes are less likely to take the risk to buy one.

When the economy’s going strong, people are more confident that they’ll be able to get another, maybe an even better job, if they leave or lose their current position. That’s why top agents pay attention to economic indicators like job growth, unemployment rates, and the Housing Affordability Index.

5. Home Size & Appeal 

When estimating your home’s market value, size is an important element to consider, since a bigger home can positively impact its value. Bigger houses tend to sell for higher prices. However, you must also factor in the appeal of the house.

Traditional, neutral layouts tend to carry more value than unusual layouts that appeal more to niche buyers. The more general the appeal of the home, the greater its value will be, especially when considering resale value. 

6. Home Age & Condition

Newer homes will tend to sell for more than older homes because they’ll typically require less maintenance. However, an older home that’s been well-maintained may sell for just as much as a newer home. Things like the home’s foundation, structural integrity, electrical work, plumbing, and fixtures are all worth considering.

For example, if a roof has a 20-year warranty, that’s money an owner will save over the next two decades, compared to an older home that may need a roof replaced in just a few years. 

7. Home Upgrades & Updates

Updates and upgrades can add value to your home, especially in older homes that may have outdated features. However, not all home improvement projects are created equally. The impact of an upgrade varies based on the market you’re in, and you’re existing home value.

Some projects like adding a pool or wood floors tend to have bigger increases for more expensive homes, while projects like a kitchen remodel or adding a full bathroom tend to have a bigger increase for less expensive homes.

8. Comparable Homes (Comps)

One of the best indicators of your home’s value is the sale prices of similar homes in your specific area that have sold in recent months. Whether it’s a home appraisal or a comparative market analysis (CMA) done by a qualified Farmington Hills MI agent, most real estate experts will rely on comparable homes or “comps” in the immediate area to estimate your home’s value.  

When looking at comparable Farmington Hills MI homes:

  • Look for homes that were recently sold—the more recent, the better.
  • Choose homes that are most similar to yours in terms of features like the type of home (two-story vs. ranch), year built, number of bedrooms, bathrooms, and square footage.
  • When possible, choose homes in the same subdivision as your home. This is because the house a block over may not be a good comparable if it belongs to a different subdivision with different HOA rules, school districts, etc
  • If your home has a unique placement, such as on golf course, waterfront, or culdesac, look for comparable homes with the same placement. 

Farmington Hills MI homes are a great investment for any home buyer. When selling a Farmington Hills home it’s important to know where your bottom line is. Keep these 8 factors in mind when pricing your home in order to attract serious buyers and prevent days on market, which ultimately, come at a cost.

Partner with Top-rated Farmington Hills MI REALTOR® -Tom Gilliam for Unmatched Expertise in Buying and Selling

 2020 Best of Farmington Hills REALTOR - Tom GilliamA top-rated Farmington Hills and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands of dollars when buying a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the optimum results. Tom employs the latest technology to deliver massive exposure that will drive maximum response from targeted buyers.

Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to best showcase its features and amenities. With over 25 years of local real estate experience, Tom will protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction.

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

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

10 Home-Selling Superstitions That Should Seal the Deal

10 Home-Selling Superstitions That Should Seal the Deal

Once homeowners have arrived at the decision to sell their property, most want the transaction completed as quickly as possible. Sure, you can hire the best agent in town, price your home just right, and then market the heck out of it, but having a little bit of luck on your side and a few selling superstitions never hurt either.

When it comes to getting the deal done in a timely manner, sellers and agents have been known to rely on time-tested selling superstitions. Let’s take a look at 10 that are all but guaranteed to get that “Sold” sticker slapped on your “For Sale” sign in a hurry.

Selling Superstition #1. Appeal to the senses.

via GIPHY

Here’s a sweet sellers superstition even if you’re not the least bit hungry, there’s something inherently appetizing about walking into a home and smelling a freshly-baked treat. While some experts recommend whipping up a batch of cookies, others say bread emits a scent that’s heartier, lasts longer, and offers greater olfactory appeal to buyers. Non-bakers will be glad to hear that sprinkling cinnamon inside a stove and turning it on low even for a few minutes will do the trick. Fans of savory versus sweet swear by roasting an onion, which is said to be enough to fool would-be buyers into envisioning hosting their very own Thanksgiving feasts in that home.

Selling Superstition #2. Bury a statue of St. Joseph in the yard.

via GIPHY

Though St. Joseph was a carpenter by trade, he’d have made a pretty great Realtor ®, some say. It’s believed that burying a statue of the saint upside down (because this way he’ll want to get out faster) seems to have a mythical ability to sell homes in record time according to some seller superstitions . Unlike costly home renovations made in the hope of a quick sale, this statue won’t blow your budget. Kits, which include an accompanying prayer, start at $6.95.

 Selling Superstition #3. Don’t do the math just yet.

via GIPHY

Apparently the old phrase, “Don’t count your chickens before they’ve hatched!” also applies to real estate and selling superstitions. Triplemint agent Phil Reynolds says, “Don’t calculate your commission unless you’re negotiating it!! I’ve heard agents say it’s bad luck to calculate your commission before the deal closes.”

selling Superstition #4. A dimmer switch is a bright idea.

via GIPHY

Some believe putting lights in dining rooms, bedrooms, hallways, and family rooms on dimmers will attract buyers who are drawn to the control they offer but wouldn’t necessarily devote to the time or trouble to adding the feature themselves, but not completely sure of this selling superstition.

Selling Superstition #5. Skip the zeros in superstitions.

via GIPHY

While it might be tempting to price a home at a nice even number, selling superstition dictates that you’d be much better off choosing a random figure as it lends intrigue. Just do yourself a favor, and leave unlucky “13” out of it.

Selling Superstition #6. Throw in some amenities.

via GIPHY

Buyers often fall in love with certain features only to be turned off when they learn that the exquisite chandelier or state-of-the-art appliance they coveted is leaving with the homeowner. Consider sweetening the pot by offering up a highly-desirable item and watch the bids roll in with this selling superstition.

Selling Superstition #7. Create a warm welcome.

via GIPHY

If the home boasts a fireplace, and weather permits, set it ablaze. A roaring fire adds warmth — literally. Creating a charming ambience will definitely distinguish one property from another in a buyer’s mind. Make sure fireplace is clean for this selling superstition as to avoid the nasty smell of burnt wood.

Selling Superstition #8. Pretty it up with fresh flowers.

via GIPHY

Another over-looked selling superstition is when a home is showing, you want it to look as fresh and inviting as possible. Flowers go a long way toward adding color and character to any space — even a pint-sized powder room. This trick holds true for the outdoors as well. Good landscaping has been known to shorten a property’s time on the market by as much as six weeks, experts note.

Selling Superstition #9. Don your lucky outfit.

via GIPHY

Lady’s will love this selling superstition,the right outfit can boost your confidence no doubt. Triplemint Sales Manager Joan Kagan says she owns a “lucky closings dress.” Hey, whatever works!

Selling Superstition #10. Smudge it.

via GIPHY

Some believe a home may have a “negative energy” lurking inside, which of course, can cause it to linger on the market long after it should’ve been sold. Smudging, a Native American ritual, in which cedar and white sage are burned either together or separately. Next a prayer or intention is said requesting that only positive energy enter the space as the negative flows back out says this selling superstition. It’s said that strangers often feel these emotions more strongly than the home’s inhabitants.

“I had a buyer who found out there was a cemetery not far from their apartment and didn’t close because she didn’t want to have ‘evil spirits’ in the house ,” Triplemint agent Greg Moers recalled. “She backed out of the contract and lost her deposit, so she was really against it. In the Asian culture, along with Feng Shui, this is a very big thing. They are against evil spirits of the dead to enter the house.”

So the selling superstitions can mean tons to any potential home buyer or home seller and although some may believe, there may just be some truth to these. Lets discuss your selling superstitions and get your home sold for the most money possible!

Sellers Should Never Reveal (Except To Their Realtor)

Sellers Should Never Reveal (Except To Their Realtor)

Sellers Loose Lips Can Lose Leverage

When sellers decide to sell their home, they may find themselves justifying their choice to anyone who’ll listen. But, as the old saying goes, “Loose lips sink ships.”

In today’s world where sharing is the norm, sometimes keeping your rationale for making a move all to yourself is the right move. Though sellers would never intentionally want to harm their chances of securing the best deal possible, by being a little too honest, they can ultimately lose leverage when it comes to negotiating.

The following are 8 things home sellers should never reveal (except to their Realtor).

1. “These taxes are killing me!”

via GIPHY

No one enjoys paying property taxes, but watching them spike over time can be a huge turnoff for some homeowners — particularly those who don’t take advantage of public school districts or other amenities funded by tax dollars. Still, sellers who share that they believe they’re grossly overpaying will cause buyers to think twice.

2. “I just want to live in a quiet neighborhood.”

via GIPHY

Whether they’re surrounded by garage bands, screaming kids, or barking dogs, if sellers are moving to get a little peace and quiet, they’ll probably want to keep that info hush-hush. Even if would-be buyers seem like heavy metal head-bangers, sellers don’t want to let them know they haven’t had a good night’s sleep in months.

3. “The house needs a lot of work.”

via GIPHY

Old roof? Rickety porch stairs? Outdated kitchen? If sellers believe their home needs more TLC than they can handle, they shouldn’t discourage potential investors with their constant complaining. To DIY enthusiasts, the chance to purchase a “fixer-upper” may be just what they’re looking for.

4. “My neighbors are crazy.”

via GIPHY

Living alongside quirky neighbors can make life a little difficult. But just because sellers and the folks next door haven’t become BFFs, that doesn’t mean they won’t appeal to new residents.

5. “I’ve had some pest problems.”

via GIPHY

From spider infestations to termite troubles, these issues will likely turn up during a home inspection anyway. So, either deal with the pest problems ahead of time or prepare to hear about it when that report comes back. Either way, announcing it isn’t going to make the situation any better.

6. “I no longer feel safe here.”

via GIPHY

Safe can be a relative term. What feels like a dicey neighborhood to some may actually be a step up from where others lived previously. Buyers can do their due diligence by checking with local police departments for crime statistics.

7. “I have to move for work.”

via GIPHY

When sellers let everyone know that they absolutely must move, it could inspire potential buyers to make a low-ball offer. When there’s a sense of urgency or panic in a seller’s tone, it’s tempting for buyers to take advantage.

8. “We’ve outgrown this house!”

via GIPHY

Just because owners may feel as if their house has been shrinking over time, that doesn’t mean it won’t seem like a palace to someone else. Let the square footage speak for itself. That said, decluttering and staging can go a long way toward making even the most diminutive dwelling seem bigger.

 Seller: Bottom line?

Deceiving potential buyers is never the goal (doing this can land you in legal trouble) — but there is such a thing as “saying too much.” Don’t be a victim of your own words. Instead, let your Realtor do the talking for you.

Much like attorneys, Realtors are skilled professionals who know what to say, and when to say it. There are moral and legal parameters that dictate what should be disclosed, and you should give full reign to your Realtor in this regard.

Pin It on Pinterest