5 Ways to Find Out What Your Grand Rapids Home Is Worth

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Selling a home? Click here for a FREE Home Price Evaluation
Call me at (616) 942-2449 for a FREE home buying or selling consultation

As we head into the spring market, a lot of people are asking, “What’s my home worth?” We are definitely in a seller’s market, and now is a great time to sell. Today, we’ll go over five ways to find your home’s value.

  1. Figure out your property’s X factors.
Finding out what nearby homes have sold for is a great starting point. You can use online tools, but there is usually a 10% margin of error either way. Still, sites like Zillow or Trulia are good places to start. Not every home will be just like yours, but look for homes that are similar. Buyers will keep your home in mind while comparing these similar homes.

  1. What improvements have you made to your home to add value?
The improvements that add value to your home are things an appraiser would attach dollars to.  Sure, a pool is a nice feature to have for the summer months, but an appraiser won’t add value to your home because you have a pool. You need to look at things like adding square footage or updating the kitchen, bedrooms, or bathrooms. Those are high impact areas that buyers care about.
  1. Use an agent who’s in the know.
An agent will provide a comparative market analysis for your property. They will find comparable properties for sale nearby and see how those stack up when compared to yours. The CMA is a great way to find out what your home is worth in our current market.

  1. Hire an appraiser to fine tune your property’s value.
If you’ve gotten multiple CMAs from different agents, it may be wise to bring in a third party who is not trying to sell your property. Hiring an appraiser can cost around $400, but we know of a couple discount appraisal companies that run for about $175. Appraisers will examine your property and tell you what they think it’s worth.

  1. Price based on the 3 Cs: competition, consumption, and condition.
Competition is important because you need to know how many homes are on the market in your price range. Consumption is another way of saying absorption rate, where you see how long it would take to sell all the active properties on the market. As for condition, compare your home with others on the market. Evaluate your property the way a picky buyer would. That can be difficult to do on your own, but a good agent will offer you an unbiased opinion on the condition of your property.

There you have it, five ways to find out what your home is worth. If you have any questions about your property or about real estate in general, give me a call or send me an email. I would be happy to help you!

Navigating Through the Hot Grand Rapids Market

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation
Call me at (616) 942-2449 for a FREE home buying or selling consultation

We’ve been tremendously fortunate to see our real estate market here in Grand Rapids grow considerably in the last year. What we’re left with is a hot seller’s market, and today we're going to talk about how you can navigate through it, from both a buyer’s and seller’s perspective.

A recent article in Forbes claimed that Grand Rapids was the best place in the U.S. to buy a house. We have seen our economy grow by 3.9% and unemployment fall to 3% in recent years. All of these factors are contributing to a hot market for sellers. Sellers are getting the prices they want for their homes because inventory is low, and buyers are competing for the best homes.

We’ve seen a massive drop in inventory from this time last year. We’re down by nearly 50%, and our average days on market is down to under 60 days. That’s a far cry from the 13 months of inventory we were seeing at this point back in 2008.

Because of this hot seller’s market, home prices are up by 13% from last year. Part of this is also due to increased buying due to low interest rates. Only 32% of buyers out there right now are first-time buyers. The buyers that are out there are having to deal with multiple offer situations due to the market conditions.

If you’re a buyer and find yourself in a situation like this, it’s important to not get too hung up on the list price. This price is set by the seller or their agent and while it may be accurate, it is not absolute. If you have your agent do a market analysis of the home as well, you’ll be able to get a more accurate picture of what the home is worth and what you’re willing to pay.

In a hot market like this, buyers are at a disadvantage. However, they can still accomplish their goal of purchasing a home with a low interest rate, which will save you money down the line no matter what you purchase the home for now.  Just remember, an extra $1,000 on the list price is an extra $4 a month in mortgage payments. If you’re looking to find your dream home, think about how much extra you’d be willing to pay to get it.

If you have any questions for us about the Grand Rapids market or you’re looking to buy or sell in the area, we would love to hear from you. Just give us a call or send us an email!