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:

 

 

The Benefits of Staging Your Farmington Hills MI Home for Sale

The Benefits of Staging Your Farmington Hills MI Home for Sale

  The Benefits of Staging Your Farmington Hills MI Home for Sale

Congratulations. You’ve decided to put your Farmington Hills MI home on the market. In order for your home to sell quickly for the best price, you first need to get buyers interested in it. Home staging is the best way to market your home when you list it for sale. High-quality home staging appeals to buyers because it helps them envision your house as their home. People don’t just buy houses; they buy a story of what their life would be like in a new home. Many home sellers see a great return on their investment in home staging, including faster home sales and higher offers from buyers.

The key to home staging is tapping into a buyer’s psychology. It’s the same concept as packaging a product to make it appeal to a target market. Professional stagers know how to accomplish that while getting the most out of every room. If you are on the fence about whether to stage your Farmington Hills MI home for sale, the following information and staging statistics should help you make your decision:

Impact on buyers

Home staging helps accentuate the home’s best features while creating a warm and inviting atmosphere for buyers. Staging works because it considers the wants and needs of buyers and taps into their emotions when searching for a home. REALTORS® who typically work with home buyers say that many are willing to offer more money for a staged home compared to a home that’s similar but not staged. 81% of buyers say home staging makes it easier to visualize the property as their future home. And among REALTORS® who typically represent buyers, 49% report that most home buyers are impacted by staging.

Staging helps homes stand out and sell faster

The main reasons home staging has become so popular are consumer demand and the rapid increase of buyers searching for homes on the internet. Most buyers first see a home online so photographs matter. If a home looks cluttered for example, buyers may pass on seeing it in person. While there’s some debate as to whether home staging actually ensures higher offers, several studies indicate that staging does sell homes faster. 

A well-staged home allows buyers to better visualize themselves in the space, and also makes them more likely to overlook small issues because they are already picturing themselves living there. A survey by Coldwell Banker Real Estate Corp. found that staged homes spend half the time on the market than non-staged homes. And a National Association of Realtors (NAR) survey found that the longer homes stay on the market, the further their price drops. One study found that homes staged prior to listing sold 79% faster than those staged sometime after being listed.  

Staging helps maximize space

Maximizing space is key when it comes to staging and selling homes. However, it can seem a little more challenging when working with smaller spaces. Stagers have a lot of amazing tips and tricks that can really transform small spaces such as choosing light colors, sticking with a monochromatic color scheme, selecting the right size furniture, removing or opening curtains to let in more light, avoiding clutter, and not overstuffing shelves, just to name few.

Staging can help potential buyers see the openness of your home instead of focusing on the small square footage. Good staging will give every room a clear purpose, taking the guesswork out of things for buyers. For instance, if your living room is also a playroom, move the toys into the kids’ bedrooms until your home is sold. A professional stager will be able to walk through your home and create a flow that is beneficial to most home buyers.

When buyers can see how a space is used, they are less likely to get hung up on an unusual layout or a small floor plan, increasing their chance of putting in an offer. 

Staging from a seller’s agent perspective

According to the 2019 Profile of Home Staging report by the National Association of REALTORS (NAR), from a seller’s agent perspective:

  • Twenty-eight percent of sellers’ agents said they staged all sellers’ homes prior to listing them for sale. Thirteen percent noted that they only staged homes that are difficult to sell. 
  • The most common rooms staged included the living room (93 percent), kitchen (84 percent), master bedroom (78 percent), and the dining room (72 percent). 
  • It was common that sellers’ agents personally offered to stage the home (26 percent). 
  • When staging a home, 22 percent of sellers’ agents reported an increase of one to five percent of the dollar value offered by buyers, in comparison to similar homes. Seventeen percent of respondents stated that staging a home increased the dollar value of the home between six and 10 percent. 
  • Twenty-eight percent of sellers’ agents stated that there were decreases in the time on the market when the home is staged. 
  • The most common home improvement items agents recommended to sellers were decluttering the home (95 percent), entire home cleaning (89 percent), removing pets during showings (83 percent), and carpet cleaning (78 percent).

Hiring a professional stager or doing it yourself 

Once you decide to stage your home, the question will be whether to do it yourself or hire a staging pro.  Many factors can affect this decision, from the condition of your home to how much time and money you are willing to invest. If you don’t have the time, the know-how, or the desire to stage your home on your own, hiring a professional stager may well be your best option. The biggest benefits of hiring a stager are convenience and assurance that the job will be done right. Plus, if you don’t have an eye for decorating, you may not fully maximize your home’s value, even if you are willing to put in the legwork.

Hiring a professional stager means you don’t have to worry about deciding on all the visual and spatial details that go into impactful home staging. Of course, there is the matter of cost. Most professional stagers charge for a consultation, which can range anywhere from a couple of hundred dollars to over a thousand depending on the size of your home. The actual staging fee itself can range anywhere from $500 to $7,000, depending on how many rooms you need to be staged, the amount of work that’s required, and if there are any rental fees for furniture, art, and/or accessories mixed in. 

While home staging may have attained its popularity in higher-priced and vacant listings, it now appears in all segments of the market. As a result, more savvy real estate agents recommend sellers have their homes staged before they list, no matter the price, size, condition, or location.

Award-winning Farmington MI REALTOR® – Tom Gilliam   

Tom Gilliam is proud to be a trusted Farmington Hills MI REALTOR® for the past 20 years – offering his guidance and expertise to home buyers and sellers. Tom understands that selling your home is a significant financial and life decision and that you are looking for someone you can trust to get you top dollar. Tom partners with the most talented home stagers and real estate photographers/videographers to showcase your home’s features and help buyers envision your house as their home. 

Tom will create a competitive marketing strategy that exposes your home to the public along with 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 protect your interests, advocate for you, negotiate on your behalf, and do whatever it takes to get your home sold fast for the best price. Feel free to reach out to Tom directly at (248) 790-5594 or you can get in touch by email.

Article sources:

https://www.nar.realtor/research-and-statistics/research-reports/profile-of-home-staging
https://www.nar.realtor/sites/default/files/documents/2019-profile-of-home-staging-03-14-2019.pdf
https://magazine.realtor/home-and-design/feature/article/2020/03/why-staging-matters
http://realestateagentu.com/11-incredible-home-staging-statistics/
https://www.nar.realtor/infographics/profile-of-home-staging-2019
Real Estate Staging Association (RESA): Consumers Guide to Real Estate Staging

Key Real Estate Roles When Buying or Selling a Farmington Hills MI Home

Key Real Estate Roles When Buying or Selling a Farmington Hills MI Home

Key Real Estate Roles When Buying or Selling a Farmington Hills MI Home

There are many types of professionals that work within the real estate industry. Knowing the key real estate roles and what they offer can be very helpful if you’re looking to buy a home in Farmington Hills MI or sell your existing property. In this article, we are going to discuss the similarities and differences of the different real estate roles, including real estate agents, brokers, REALTORS®, listing agents, and buyers’ agents, and how they each can bring value to a transaction: 

What Is a real estate agent?

A real estate agent is an industry professional who serves as the facilitator of real estate transactions. Agents are licensed salespersons and cannot work independently. Real estate agents work for brokers or agencies and are normally paid on a commission basis, which is a percentage of the sale price of a property. The employing broker is responsible for a real estate agents’ actions and requirements for a real estate salesperson license vary from state to state.

Real estate agents are ultimately responsible for bringing buyers and sellers together and for carrying offers and counteroffers between each party along with any queries they may have. An agent will work with another agent once an offer is accepted, guide clients through the process of filling out paperwork, and make sure their clients are aware of any requirements to complete the sale, such as home inspections, moving, and important dates like the closing.  

What is a real estate broker?

A real estate broker is a step above a real estate agent. A broker typically will have more training and subject-matter education than an agent (but not always) and will typically handle some of the more technical aspects of a real estate transaction. A broker can work independently or hire real estate agents to work under them.

Brokers who work with buyers normally look for properties that match the criteria set forth by their clients, conduct negotiations, prepare offers, and help the buyers with any other issues leading up to the closing date. Sellers’ brokers determine market values of their clients’ properties, list and show properties, communicate with sellers about offers, and assist in the offer process. A broker associate is a real estate broker who works for another real estate broker or a brokerage firm.

Although brokers can work for themselves, they may choose to join a larger real estate network. Some pay a flat fee to the employing broker and some earn a percentage of each transaction. Brokers receive a commission once a sale is completed.  The listing agreement or contract generally outlines how much of a percentage of the sale will go to the broker.

What is a REALTOR®?

Not all real estate agents or real estate brokers are REALTORS®. Although the word “realtor” is commonly confused with that of “real estate agent,” the designation is open to a variety of professions within the real estate industry. A REALTOR® can include residential and commercial real estate agents, brokers, property managers, appraisers, and other real estate professionals.

“REALTOR®” is a title that means the individual belongs to the National Association of REALTORS® (NAR), is bound by an extensive code of ethics, is an expert in their field, and pays annual dues.  REALTORS® are expected to be honest and transparent with their clients, avoid exaggeration and misrepresentation, and always conduct business with their clients’ best interest in mind.  

What Is a listing agent?

A listing agent can be a real estate broker or a real estate agent. Listing agents owe a fiduciary responsibility to the seller under a listing agreement and must protect that interest. In other words, the agent must put your interests first.  Listing agents have a comprehensive understanding of how the real estate market works and how to market and price a property effectively. 

Their responsibilities include listing the property on various listing services; negotiating prices, contingencies, and conditions on behalf of the seller; scheduling showings, pricing and advertising the property; property, and help with the closing paperwork.

Most listing agents require sellers to sign exclusive selling agreements. By doing so, the agent secures a commission for his or her brokerage upon closing. The brokerage then shares a portion of the commission with the agent. 

What is a buyer’s agent?

A buyer’s agent is a real estate professional who guides a buyer through the process of purchasing a home. A buyer’s agent has a legal obligation to protect the interests of the buyer and work to ensure they are getting the best deal possible. Although there are some real estate agents who specialize in working with buyers, most agents work as either a buyer’s agent or listing agent, depending on the specific transaction. 

A buyer’s agent is responsible for acting as a resource for their clients by guiding them through each step of the home buying process. They find listings for the buyer, schedule showings, negotiate with the listing agent, recommend other real estate professionals such as real estate attorneys, inspectors, etc.; and guide and advise the buyer through closing.

Typically, it’s the seller who pays the commission for both the buyer’s agent and listing agent. If buyers are unable to find a home to purchase, the buyer’s agent doesn’t get paid.

The takeaway

Whether you are buying a home in Farmington Hills MI or it’s time to list your property, knowing the types of real estate professionals can help you make informed decisions. For example, when you hire a real estate agent, you may also want to dig into the real estate broker’s reputation, since that’s who the agent works for.

You may also prefer to work with a REALTOR® since they are held to a high ethical standard. Regardless of the type of real estate professional you work with, make sure they are experienced, knowledgeable, skilled, appropriately licensed, and have a stellar reputation.

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. Tom 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, he will protect your interests, advocate for you, negotiate on your behalf, and do whatever it takes to ensure the best results possible. 

Feel free to reach out to Tom directly at (248) 790-5594 or you can get in touch with 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 

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

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