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

Should I Sell My Farmington Hills Home During COVID-19 Crisis or Wait?

Should I Sell My Farmington Hills Home During COVID-19 Crisis or Wait?

Should I Sell My Farmington Hills Home During COVID-19 Crisis or Wait?

With the COVID-19 pandemic causing uncertainty in the economy and housing market, some Farmington Hills home sellers are asking themselves: “should I sell my home right now or should I wait?”  Some sellers are choosing to wait it out in hopes that the situation will improve in the coming months.

Not everyone, however, has the luxury to take the wait-and-see approach due to job relocation,  growing family needs, facing a different financial situation, or some other personal reason. 

Although selling a home now and in the near future is going to look a lot different than it did only a few months ago, people haven’t stopped selling houses altogether and real estate transactions are still moving forward. Many sellers are still listing their homes, and buyers are still buying them.

In late March, the U.S. Department of Homeland Security declared residential real estate sales an “essential service” that will be allowed to continue.

That being said, you should check with your REALTOR® or local government for what’s allowed in your area, and keep in mind that things could change depending on how the coronavirus situation progresses.

Even if real estate businesses are considered essential, they could still have restrictions in some places such as prohibited gatherings exceeding a certain number of people.

So, you couldn’t have, say, more than 10 people in an open house if such a crowd is prohibited. In certain areas, in-person home showings are still taking place, although how they are held and how many people are allowed to attend has changed.

Open houses in accordance with guidance from the Center for Disease Control (CDC) and the President: 

  • Ensure that less than 10 people are touring the home at any given time, and consider only allowing one buyer group to tour the home at a time.

     

  • Be sure that guests maintain social distancing of six or more feet apart, and require potential buyers to wash their hands or to use an alcohol-based hand sanitizer immediately upon entry and to remove shoes/cover footwear with booties.

     

  • Be sure to check with your client before using any cleaning products, and recommend that your client disinfect their home after the open house, especially commonly touched areas like doorknobs and faucet handles.

Alternative Ways to Market Your Farmington Hills Real Estate

Home showings of any kind, including open houses and even private showings, are not allowed under Michigan’s current stay-at-home order. In response, REALTORS® are getting creative, offering tours through 3D-photo or video, Facebook Live, Zoom, and other avenues.

While virtual tours and showings are a great way to keep home sellers and buyers safe, this new reality has raised the bar on how homes should be presented and marketed online.

A few nice photos of your home may not be enough during this time. You only get one chance at a first impression, so you don’t want to be using poorly shot and lit iPhone photos and videos.

Make sure the real estate agent you hire is well-versed in digital technologies that will be used to show off your home in the best possible light. 

Some Homes May be Easier to Sell than Others During COVID-19 

Before you list, ask your REALTOR® how likely your home is to sell in this unusual market. Some properties have a better chance of selling than others based on factors such as: 

  • Price Point – If it’s a beautiful home at a medium price point in your area and it’s priced competitively and staged well, it will have a better chance of selling at this time. Buyers at higher price points who have large holdings in the equity markets may postpone large real estate transactions as they wait for stocks to recover from the market plunge.

     

  • Online Presence and Marketability – In today’s market, your home must shine in online listing photos and videos to convince buyers to leave their house to view it in-person. Now, more than ever, you have to make sure you have professional photography because that’s what people are seeing online. They are not going to open houses and not driving by as much.

     

  • Vacant vs. Occupied –  Vacant properties are receiving the most attention due to ease of viewing while tenant occupied homes are proving more difficult to sell. Tenants have rights, and many don’t want people coming through their house. With “offer subject to interior inspection,” only buyers who make an offer on the property are permitted to view it in-person. While more common to see for tenant-occupied properties, owner-occupied homes may be listed as “offer subject to interior inspection,” as well.

A House Sold During Coronavirus Pandemic

If you sell your Farmington Hills home during the COVID-19 pandemic, your contract may include a coronavirus clause that permits closing extensions and home sale cancellations without legal or financial repercussions. For sellers, this means the buyer may leave the deal without losing their earnest money.

To protect your interests, you can negotiate in what scenarios the buyer keeps their earnest money. For instance, you can amend the clause to state that the buyer must forfeit their earnest money if they withdraw their offer with no reasonable cause.  

The Takeaway

For the best insight on how the coronavirus Pandemic is affecting the local market, reach out to a top real estate agent that specializes in your area.

Top agents track daily updates and evolving COVID-19 regulations, and can help you determine whether your Farmington Hills property is marketable at this time as well as answer any questions you may have, and accommodate any special needs such as a contactless home assessment.

Partner with Farmington Hills MI REALTOR® – Tom Gilliam

 2020 Best of Farmington Hills REALTOR - Tom GilliamWhether you are looking for homes for sale in the Farmington Hills or you are ready to list your current property, experience matters most in a changing market.

With over 25 years of local experience, Tom provides the kind of knowledge, skills, dedication, and personalized service you need and deserve.

As your personal agent, Tom will protect your interests, advocate for you, and go above and beyond to ensure a smooth and successful transaction. 

If you or someone you know is interested in buying or selling Farmington Hills 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 #301741

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