Wondering how much your Metro Detroit home is going to appraise for over the next few years?
Buying a home is exciting. There’s nothing like the thrill of the hunt… Searching for that perfect house that includes everything you and your family want – whether it’s a fenced-in yard, an open floor plan, or a first-floor bedroom for an older relative – at a price that fits your budget. Of course, home buying can have its ups and downs, but overall it’s a fun and positive experience full of possibilities.
But selling a home? Not so much fun. It can be complicated to know when to sell, how to sell, and how much is reasonable to expect to get for the home. You know your home should increase in value over time, but how much?
The rate of appreciation varies massively by city, suburb, and even neighborhood, but the national average is around 3.8% per year, which lines up with Metro Detroit’s average.
This means that we might expect a home that’s currently worth $200,000 to be worth $207,600 at this same time next year. Three years from now that house might be worth about $223,677.
That’s the magic of real estate appreciation. But there are some caveats.
First, there is no guarantee of appreciation, especially if the market takes a turn. All investments include a little bit of gambling. You’ll have to factor in your local market, right down to your neighborhood, to get a better idea of how much your home is going to appreciate over the next 5-10 years. (Check out our YouTube channel for Southeast Michigan real estate market updates by county!)
Second, if you’ve owned your home for years and years, consider this: There comes a time when a home’s age starts to negate its appreciation value, and it might be a good idea to sell before this drops off. If you’re making a lot of repairs or updates to your home, then it’s likely that the appreciation rate of your property is waning.
Hopefully, this info helps as you weigh if and when to sell your home. As always, feel free to reach out to Mitten Made Properties at (248) 883-3340 before you hire a realtor. We’ve been helping Metro Detroit home sellers for a long time so we have our finger on the pulse of hyperlocal appreciation values, and we can make you a fair cash offer and close in as little as two weeks. We’ll even pay all closing costs. Follow us on Instagram for more insights and intel!