How Much is My Farmington Hill MI Home Worth? 6 Factors That Influence Home Value: Determining the appropriate asking price for your Farmington Hills MI home is vital for a successful sale. Even if you have experience in the Farmington Hills / Oakland County MI real estate market, home prices can differ substantially from initial evaluations. Effective home valuations make the home selling process faster and less stressful, and knowing the right value of your home can help you secure a better deal.
It’s easier to avoid common home selling mistakes when you are aware of the factors that influence your home’s value, and pricing your Farmington Hills MI property correctly from the beginning is key. If you overprice your home, you could lose potential buyers that are actually in your price range. Your home will not be attractive to buyers in the higher price range compared to other similarly priced homes they are viewing.
The last thing you want is to have your property linger on the market and can create the vibe among buyers that there’s something wrong with it, otherwise known as a “stale listing.” Pricing your home too low may cause it to sell fast, but for less money than you would have received if priced at market value.
Six key factors to consider when pricing or valuing Farmington Hills home for sale include comparable homes (comps), quality of the neighborhood, the market, nearby features, size and appeal, and age and condition of the home:
1). Comparable Homes or “Comps”
One of the best indicators of your home’s value is the sale prices of similar homes in your neighborhood that have sold recently. These comparable homes are often referred to as “comps.” Most real estate experts will rely on comps to estimate a home’s value and will consider recency, similarity, distance, and location:
Recency – homes that were sold recently or within the last 90 days
Similarity – homes that are most similar to your property in terms of features such as year built, two-story vs. ranch, number of bedrooms, bathrooms, basement, square footage
Distance – homes in the same subdivision or sold within a one-mile radius of your property
Location – homeswith the same placement such as on a busy street, cul-de-sac, golf course, or waterfront.
Agents will look into the difference between each comp’s listing price, and the price it sold for. Your agent will also rely on inside knowledge of housing inventory and the local market. That nuanced understanding is invaluable, particularly when measuring the unique aspects of your home with raw data about comps. They find these homes using the multiple listing service (MLS), a regional database of homes that agents pay dues to access.
2). The Neighborhood
The neighborhood where the house is located will have an impact on a home’s value, responsible for both qualitative and quantifiable aspects of a home’s appeal. For example, school quality significantly affects home values and families often choose the location of their next home by where their children will go to school.
According to the National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20.
On the other hand, if your property is the only house on the block that’s in great condition, or there are neighbors that have unkempt lawns, or other visual disturbances, then the value of your home could decrease. According to the Appraisal Institute, a bad neighbor could potentially reduce your home’s value by up to 10%. This sort of effect is referred to as external obsolescence, where external factors have an effect on your home’s value, instead of factors on your property that can cause a decrease.
3). The Local Market
The current state of the housing market will have an impact on your home’s value. Home prices are shaped by supply and demand and may fluctuate based on subtle changes in your area’s economy. Even if your home is in excellent condition and in a stellar location, the number of other properties for sale in your area and the number of buyers in the market can impact your home’s value.
If you’re buying in a buyer’s market, you’ll likely have more room to negotiate on the home’s price. If you’re selling in a buyer’s market, you may have to adjust the price to attract more offers or be willing to make concessions to a seller, like paying closing costs, covering repairs, or being more flexible with the timeline.
4). Home Size and Appeal
When estimating a home’s market value, size is an important element to consider, since a bigger home can positively impact its valuation. The value of a home is roughly estimated by price per square foot (the sales price divided by the square footage of the home). For example, a 2,000 square foot house that sold for $200,000, the price per square foot would be $100. However, the price buyers will pay per square foot can vary greatly depending on the location of the home.
Usable space also matters when determining a home’s value. Garages, attics, and unfinished basements are generally not counted in usable square footage. Bedrooms and bathrooms are most highly valued, and the more beds and baths your home has, the more it will typically increase in value.
5). Home Age and Condition
In addition to size and appeal, you’ll need to think about the home’s age and condition. Typically, homes that are newer will sell for more than older homes because they will typically require less maintenance. Critical components like electrical, plumbing, appliances, and roofing are less likely to need repairs or replacement and can translate to savings for a buyer.
However, an older home that’s been well-maintained may sell for just as much as a newer home. Condition matters. A home’s foundation, structural integrity, electrical work, plumbing, and fixtures are all items worth considering.
6). Location in Relation to Nearby Features
Location can be more important than even the size and condition of the house when determining how much value to assign based on the location of the property. According to Inman, there are three primary indicators when assigning value: the quality of local schools, proximity to employment opportunities, and proximity to shopping, entertainment, and recreational centers.
These factors can influence why some neighborhoods command steep prices and why others that are only a few miles away don’t. In addition, a location’s proximity to highways, utility lines, and public transit can also impact a property’s overall value.
Keep the above factors in mind when pricing your home to help attract serious buyers and to prevent long days on market, which ultimately come at a cost. Even after the listing date, price should be an ongoing discussion between you and your agent. Markets are fluid, so you may have to make some tweaks when all is said and done.
Ready to Sell Your Farmington Hills MI Home? Partner with Top-rated Farmington Hills MI REALTOR – Tom Gilliam
Top-rated Farmington Hills REALTOR® – Tom Gilliam has over two decades of experience helping home buyers and sellers realize their dreams in Farmington Hills MI and the surrounding Oakland County area. Tom offers in-depth local market knowledge and employs the latest technology and the most cutting-edge approaches to marketing your home to get it in front of as many qualified buyers as possible.
You can be assured that Tom is 100% committed to getting your home sold as quickly as possible and for the highest market price. For more information about buying or selling Farmington Hills MI real estate, please contact Tom directly at (248) 790-5594 or get in touch with him here!
Tom Gilliam, REALTOR® RE/MAX Classic 29630 Orchard Lake Rd. Farmington Hills 48334 Direct: 248-790-5594 Office: 248-737-6800 Email: Tom @ Homes2MoveYou.com License #314578
Setting The Asking Price For Your Home-Whats It Worth
As the seller, you are often going to have trouble with setting the asking price for your home. If it’s over priced, it will sit on the market for too long and if it is under priced, you might not get any money back on the renovations you just made.
This is why it is important to consult a real estate agent before proceeding with any sort of real estate decisions. They have all the resources, which you don’t have access to and they can easily find any information they need. There are many factors that you need to consider before setting the asking price for your home and you can do so easily with a real estate agent by your side. You see… the first thing buyers notice when they see the listing is the price of the house. If they find it too high, they don’t even bother to look at the pictures of the house.
There are hundreds of websites that will give you an accurate estimate of your house based on its details such as square footage, number of rooms, location and more. A free evaluation gives you an idea what your home for sale in Oakland County, Michigan is worth. You can get as many evaluations as you like and then compare the prices. This will give you a solid idea regarding the prices in your neighborhood .
Let’s assume that your neighbor just sold his house. The location and the square footage of the neighbor’s house put your house at equal footing. So, you decided to sell your house at the same price. Months go by and many buyers tour the house. However, none of them come back with an offer. Why?
This brings us to our second point:
Look at the Comps
Comps refer to comparable houses that you can look at to set the asking price that suits your home for sale in Oakland County, Michigan. House that have been sold last month and were identical to yours with no additions can be used as compass. The good news is, a real estate agent has a whole database of comps, which makes it easy for him to help you set the asking price. You can find information on your own too by taking with the locals and other neighbors in your area. In the end, regardless of what the real estate agent recommends, you will have the last say on the asking price. However, it is better to trust the agent because they have sold dozens of houses, which is what makes them experts at their job.
Sometimes, your house might be valued at a lower price than you expected. It’s hard to not get emotional in such a case, but it is also important to think practically in such situations. This is where a real estate agent comes in because they have an unbiased perspective. Looking for a real estate agent to help with your house sale? Visit my website Homes2MoveYou now and contact me for a free evaluation of your home to get an appropriate asking price for your home.
It would be a mistake to take the word of an appraiser about what your home is actually worth on the market, but a Comparative Market Analysis is the next best thing when selling your home in Oakland County Michigan.
You will get different appraisals that yield different results. An agent who specializes in Oakland County Michigan real estate can do a Comparative Market Analysis based on your specific neighborhood and its features.
Well, you’ve decided to enter into selling your Oakland County Michigan home. Well, except for the fact that there is so much information that you have no clue how to begin. Don’t fret, real estate selling tips are here!
Listed below are some tips that will help you get started and organized so that you can successfully sell your Oakland County Michigan home.
Inexpensive kitchen updates can play a major role in the appeal and value of your home. Adding one eye-catching appliance, like a stove or refrigerator, can make the kitchen more attractive to buyers. Island fixtures add extra counter space, while hanging storage de-clutters the cupboards and serves as ornamentation. No wonder they are such popular upgrades. Rather than investing in the replacement of all the cabinets, try a new paint job, which is much less expensive for a new look.
IMPROVING FOR BEST PRICE
Improving your home’s curb appeal will help you to sell your Oakland County Michigan home faster. Your lawn is one of the first things a buyer sees as they pull up to your house, and it is one of the last things they see as they leave. Your yard can make a huge impression on the buyer’s overall feeling about the house. Repair your driveway and tidy your yard to make a good impression.
Sellers are more motivated and inclined to negotiate during the fall months. They may have rejected offers during the spring and summer months that they would be more than happy to accept this late in the year. If a home that you looked at earlier in the season is still on the market, go back with a low offer and it may be accepted.
When you have your home assessed and inspected in order to sell it, don’t automatically assume the assessor and inspector recommended by your real estate agent are the best choice. Selling a home is probably one of the biggest financial transactions you will ever make. You need to be sure that the people responsible for determining the value of your home are trustworthy. A Comparative Market Analysis can help you determine what other homes similar in your area have sold for , it is suggested that it be within the last six months as the housing market changes rapidly at time.
WHY A CMA?
Comparative Market Analysis is an important first step in Selling a Home in the Greater Oakland County Mi area, it is full of statistics and other criteria that a Realtor like myself uses to determine what the value is of your home in comparison. The Comparative Market Analysis can also be used for a Home Buyer to determine if they are paying to much for a Home they are considering making an offer on. The CMA is the best tool we have in our arsenal to help you and work with you towards your Home Selling or Home Buying needs. If you are interested in getting a CMA on your current property for free and no obligation please fill out the form below and I will have it to you in no time.
REQUEST A SELLER GUIDE
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As a professional Oakland County Michigan REALTOR®, I take pride in my knowledge of the current market conditions in all of the region’s micro-markets – and offer my clients an intimate glimpse into the neighborhoods that might become their next home or one they sell a home in.