))
Home Pricing in Southeast Michigan Is About to Change
Manage episode 156352837 series 1186136
Content provided by Derek Bauer. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Derek Bauer or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Want to sell your Michigan Home? Get a FREE home value report
Want to buy a Michigan Home? Search all homes for sale
Today, I want to talk about the future of home pricing. For decades, homes have been priced the same way. Realtors look at comparable homes and run a Comparative Market Analysis.
Part of that is a necessary evil. When I meet with a prospective seller, I like to focus on absorption rates, what’s coming on the market, days on market, and other factors. These factors give sellers a better perspective and insight compared to basic questions about bedrooms, bathrooms, and price per square foot.
Home buyers have shifted their focus from bedrooms, baths, and price to lifestyle, affordability, and commute times. In recent years, buyers purchase a home to suit their lifestyles. Right now, companies are creating algorithms to calculate the true cost of ownership. These algorithms will take factors like the age of the home, features, and mechanics to figure out the cost of ownership.
That’s just one factor these new algorithms will take into account. A buyer can search for homes based on mortgage insurance, school quality, and proximity to favorite recreational hangouts. These pricing models will allow users to manipulate the algorithms by selecting properties and adjusting for market activity in their desired area. You can also search for the cost of home ownership, projected expenses, location, market activity, and the condition of the property.
For example, let’s say you purchase a home with a new roof that will last for 30 years and plan on living there for 10 years. That’s less expensive than buying a home with a 15 year old roof that’s designed to last for 30 years. You will probably have to spend more money on roof upkeep. You may even have to replace it, raising your cost of ownership.
This technology is very new. I’m going to stay on top of it and direct you to it once it’s working well. I’m very excited about this new technology. If you have any questions, give me a call or send me an email. I would be happy to help you!
17 episodes
Share
