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This is a common question I get when a person is considering selling their Oakland County MI home. First let me explain that most everything is negotiable; the purpose of this post is to address what is customary for the Oakland County and Lapeer County areas.

Costs to the seller:

  • commission (I normally charge 6%, 10% on vacant land)
  • transfer tax (.75%)
  • revenue stamps ($1.10 per $1000)
  • title insurance (depends on the sale price)
  • $295 file retention fee (amount varies with different companies)
  • misc. costs such as wiring fees, recording fees and I usually estimate on the high side at $500 but is probably closer to $100 on most transaction

If you currently have a mortgage on the house that will have to be paid out of your proceeds. Taxes are usually prorated to the date of closing and if you are current on your taxes you will probably get some back. Homeowner association dues is usually prorated to the date of closing. Water and sewer bill (if applicable) are paid at closing.

If there is possession $200 or $300 is usually escrowed at closing to cover any water/sewer charges for the time you live in the house as a tenant after closing. You will normally pay the new owner’s house payment for the time you stay after closing. So you agree on 45 days possession after closing, we will typically escrow 45 days of the new owner’s mortgage and you pay for the days you stay.

These costs are for a normal sale- not short sale or land contract sale.

For more information about selling your Oakland County or Lapeer County MI home please don’t hesitate to contact me.

Jackie Hawley, Realtor
ReMax Encore
Jackie@JackieHawley.com

Cell: (248) 736-6407

www.MiRelocation.com

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Price Per Square Foot DOES Determine “Value”

If you are considering selling your house in North Oakland County or Lapeer County Michigan you can kiss those upgrades you added to your house over the years good bye! Had the house built and chose the $300 light fixtures over the $50 light fixtures? Went with a little better cupboard in the kitchen? You know- the ones that weather much better than the builders grade kitchen cabinets your neighbors went with. The ones that still look good 10 years later. And still aren’t dated.

Hope you had hardwood put in instead of liminate or carpet for your own enjoyment and didn’t consider re-sale one iota. I hope the ceramic and granite in the baths and kitchen made bathing and cooking that much more enjoyable. You know- the money you sank into those all so important rooms for both your own enjoyment, but mostly for resale. How much DID you spend on those upgrades? Probably enough for an extremely kick ass vacation.

Too bad those upgrades don’t mean diddly squat to your appraiser.

north oakland county mi real estate price per square foot counts more than condition

photo courtesy Shari Weinsheimer

north oakland county mi real estate price per square foot counts more than condition

photo courtesy Donna McNeely

 

 

 

 

 

 

 

VALUE IS IN SIZE ONLY

 Gone are the days when the consumer set value. I recently had 2 buyer offers accepted- both sets of buyers were extremely happy with the prices they were getting their respective houses for. And the appraisers for both those houses seemed to feel that size alone ruled.

House #1 was a multiple offer situation on Lake Oakland. We came to terms at $380,000 and according to the listing agent we were NOT the highest offer. Other incentives in the offer swayed the sellers our way. Then the appraisal came in $80K low. She put almost all her eggs in the above grade sq. footage of the house and didn’t take into consideration the neighborhood, school district, the upgrades, the premium lot, she used comps on “inferior” lakes…… But the one place she was consistent was in her price per square foot.

I have another sale going on currently. Buyer and seller came to an agreed upon price of $98,800. The appraisal came in at $85,000. The problem is the house is a tad under 1000 square feet. Most of the comparable sales are around 1300 square feet. I’ve been in many of these houses- and they don’t compare. Except for size. All are 2 bedroom homes with basements and garages. The house my client is buying is meticously maintained. A better quality kitchen to start with and even though the house is 25 years old, the kitchen still looks great. Hardwood floors, ceramic baths, newer carpet. The current owners seem to be the type who repair or replace at the first sign of a problem- not after the roof leaks or after the deck boards rot and break.

The only adjustments made in the appraisal were for the basics like walk-out basement verses standard basement, 1 car garage versus 2 car garage. No adjustments for location, maintenance or overall quality.

So the long and the short of it is- All those upgrades your house has that your neighbor’s house doesn’t is not going to put one extra dime in your pocket. What it will do is make your house easier to sell.

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