When you are buying a home in Michigan (whether it is Livonia Real estate, Oakland county Real Estate, Wayne County Real Estate, Livingston County Real Estate, Washtenaw County Real Estate) here are suggestions on what is a plus or minus in value.
Where you buy?
A home on the main street or on a corner bordering the main street is going to be worth less than a home in a subdivision. The closer you are to main streets, stores, factories brings the value of the home down. Just because you paid a big premium for a lot when you built, because it is wooded or on a cul-de-sac doesn't mean that you will recoup the money many times over. As time goes on it is hard to put a large value on a lot. A lot that backs up to the woods or cul-de-sac appeals to the nature lover, or private person. A lot that backs up to the commons, or where nobody can build behind you is a plus. A lot that is near a school or park may be a plus or minus depending on whether the future buyer has kids, want to enjoy the park, or is getting up in age.
What about a VIEW?
If a view is important to you, buy it mostly for your own pleasure and not as an investment. You may place a considerable dollar value on the view, future buyers may not be so like-minded. It could take you longer to find a buyer when it comes time to resell your home. Or you may end up dropping your pricer to more nearly match other sales in the area.
If you are buying a house with a view, try to pay as little extra as possible, because you might not get your money back in return.
If you can see stores, factories, parking lots brings the attraction of the property down. It is usually a negative because people think about the traffic, the privacy, and the noise associated with these places.
Basement?
A basement should be standard. A home without a basement in Michigan is a negative. A walkout basement is a plus. So if you are deciding between a home with a basement or one with a crawl space. The basement is a plus.
Landscaping and the Lot?
The lot should be as level as possible. A steep hill scares people about cutting the grass or coming down the driveway. Lot shape and size is not a big determing factor. Some people want a large lot, some want small, some want a big back yard, some don't.
Yard sizes in general are smaller today than older homes. Do not buy a house where the entire backyard is taken up by a swimming pool, for example. But likewise do not over-landscaped your property, either. I was a landscaper for years. I love it and my house is maxed out in terms of landscaping. But do it for your own enjoyment only. You will not get the money out of it. You would normally pay more for that, which you may not be able to recover when you sell. You will get more for your money if the house is moderately landscaped or under-landscaped for the area. You can always impove....but remember don't spend to much.
Pools usually are a negative because of the liability, the cost, the upkeep, and the problem of removing it.
Like this picture not overdone
What about Square Footage?
When determining market value, the homes nearest to yours are the most important. When a appraiser looks at your house he must compare it to homes that are similiar to yours in style, age, and characteristics. The appraiser must then compare to homes that have sold in the last six months and usually within 1 square mile of yours without crossing any main street. (If possible)
You should never buy the largest home in the neighborhood why? If most of the houses nearby are smaller than your house, they can act as a drag on the appreciation. However if you can find a large undervalued home and you need the space for a growing family then buy it. Just remember when you sell it that it will sell for less then too.
If you are adding on square footage matters. This is the single most important factor in determining value of a home. The more square footage the more it is worth until it is bigger than the rest of the homes in the area.
If you by a small or medium house for the area, the larger homes can HELP pull up the values for the neighborhood. It is really important to determine your "wants" vs. your "needs". By buying the small house in the neighborhood you will most always rise in value with the bigger home. Buying a small house in a more prestigious neighborhood may provide more financial rewards than getting what you want in a less desirable neighborhood.
Number of Bedrooms & Bathrooms?
When it comes to resell you should stick with 3 or even better 4 bedrooms. A two bedroom house is much harder to sell. People love to knock down a wall and make one large bedroom out of two. Try to make it that the wall can be put back easily. Or people convert a bedroom into another room or knock down the wall. A two bedroom house is harder to sell. When it's time to sell you will have MORE potential buyers looking. Five bedrooms are ok as long as the buyers don't have to pay to much more the additional bedroom.
There should always be at least 2 baths in ANY home , preferably at least 2 1/2. Bigger baths off the master bedrooms known as 5 pc. baths will add more value to any home as well.
Kitchens & Garages!
For kitchen's the bigger the better! An Updated kitchen is the best.
Kitchens are very important in any home today. Modern update appliances, eating islands are very popular today. When updating a kitchen the more money you put into a kitchen will give you a good return on your money.
Garages like kitchens also add to the value but not as much. Today more families are looking for at least a 3 car garage (for that extra storage) or even additional parking on the side of the house for a RV or boat is in demand. A single man will always love a big garage. Appraisal wise the difference between a 2 or 3 car garage may only be $2000. Also in some parts of the country additional Garage/Shops will add even more value.
Ammenities
Hardwood floors are a plus always, tile floors are an upgrade. Separate shower, jetted or whirlpool tub, open layout, main floor laundry, slighter larger rooms than comparable houses are all pluses. Walk in closests, master bath are all pluses.
If you have some ideas about what you want in a home and you would like listings emailed to me. Use the Dream home finder
Russ Ravary is a licensed real estate agent in the State of Michigan and a Realtor.
Photos, Comp and Listing Information Courtesy of Realcomp II Ltd, Properties shown have been listed and sold by various MLS member REALTOR® agents.
I do not guarantee or warrantee any of the above information. Please feel free to verify any of the facts. I recommend to always have a home inspection, always consult an attorney about contracts, Purchase agreements and any legal questions. Also consult a CPA or accountant about tax consequence regarding a Michigan home sale, or Michigan foreclosure.
