What Does $500,000 Get You in Northern Michigan Real Estate?

From petite condos to sprawling acreage, it’s all about location, location, location

In the world of real estate, $500,000 used to buy you a mansion. Today, that big chunk of change can mean very different things depending on where you’re looking—especially in northern Michigan. In some areas, that price might get you a newer home with acreage, maybe even water access. In others, it might mean an older, modest house in a prime location.

To get a sense of what half a million dollars buys right now, we browsed listings across several counties in the region. We focused on homes priced around $500,000, giving a snapshot of what’s available at that price point—from the woods of Otsego County to the heart of downtown Traverse City.

Traverse City (Grand Traverse County): Small, but Stylish

Listed at $479,900, this 2-bed, 2-bath condo in downtown Traverse City offers modern living in one of northern Michigan’s most walkable towns. Built in 2010 and clocking in at just over 1,000 square feet, the unit features hardwood floors, a garage (a rare commodity in this area), a spacious balcony, and a location that puts you steps away from restaurants, the Boardman River, and public parks.

https://www.realtor.com/realestateandhomes-detail/307-E-Eighth-St_Traverse-City_MI_49684_M40265-33464?from=srp-list-card

Boyne City (Charlevoix County): A Wooded ’90s Beauty

This 3-bed, 2.5-bath home on Leisure Lane comes in well under budget at $425,000, leaving room for updates and customization. Built in 1995 and spanning over 3,200 square feet, the house sits on a wooded lot with ample outdoor space, shared waterfront access, and even a dedicated room for a private sauna.

https://www.realtor.com/realestateandhomes-detail/3065-Leisure-Ln_Boyne-City_MI_49712_M39445-01006?from=srp-list-card

Suttons Bay (Leelanau County): Old Bones, Contemporary Look

Built in 1910, this 4-bedroom, 2.5-bath home offers a blend of vintage charm and downtown convenience for $485,000. With major renovations from windows to a new furnace, this turnkey home offers 1,100 square feet of living space, a three-season pavilion room, and is located directly on the TART trail with views of Suttons Bay beach.

https://www.realtor.com/realestateandhomes-detail/224-N-Saint-Marys-St_Suttons-Bay_MI_49682_M47251-32745?from=srp-list-card

Indian River (Cheboygan County): Farmhouse Retreat

On the market for $439,000, this 3-bed, 2-bath home sits on 1.5 acres, including 415 feet of riverfront property on the Blue Ribbon Sturgeon River. Built in 1996, the house includes 1,500 square feet and comes with a new roof and an artesian well. Who doesn’t want kayaking, canoeing, rafting, tubing, and world-class fishing outside your front door?

https://www.realtor.com/realestateandhomes-detail/5477-Schultz-Rd_Indian-River_MI_49749_M31072-35703?from=srp-list-card

Gaylord (Otsego County): New Digs on 10 Acres

Looking for space to spread out? This 4-bedroom, 3-bath home sits on ten acres of land and is listed at $445,000. Built in 2019 with just under 3,000 square feet, the home features a finished walkout basement, large back deck, and the peace and quiet of rural living just outside of Gaylord.

https://www.realtor.com/realestateandhomes-detail/5135-Old-Alba-Rd_Gaylord_MI_49735_M42571-22185?from=srp-list-card

Harbor Springs (Emmet County): The Refreshed Alpine Life

Remodeled from top to bottom, this chalet-style condo near ski country is listed at $449,900. It offers 2 bedrooms, 2 baths, and 1,200 square feet of sleek interior space. Originally built in 1981, the home is minutes from ski slopes, golf courses, and the charming downtown of Harbor Springs.

https://www.realtor.com/realestateandhomes-detail/3955-S-Pleasantview-Rd_Harbor-Springs_MI_49740_M98547-57667?from=srp-list-card

Frankfort (Benzie County): Triple the Opportunity?

At $439,000, this triplex in Frankfort offers both living space and income potential. The property includes three separate units across 2,000 square feet, all within walking distance of Lake Michigan, downtown shops, and restaurants. Built in 1960, it’s a unique opportunity in a popular beach town.

https://www.realtor.com/realestateandhomes-detail/812-Forest-Ave_Frankfort_MI_49635_M32168-90479?from=srp-list-card

Petoskey (Emmet County): Neat and New

This 2-bed, 2.5-bath home is only five years old and blends suburban quiet with proximity to downtown Petoskey. Listed at $475,000, it features modern finishes, just over 1,800 square feet, and a location in a quiet residential neighborhood close to parks and shopping.

https://www.realtor.com/realestateandhomes-detail/705-Maple-Creek-Blvd_Petoskey_MI_49770_M38428-40554?from=srp-list-card

Shopping Smart in a Shifting Market

Of course, listings only tell part of the story. To get a better understanding of how buyers can make the most of their money in today’s market, we talked with local realtor Mike Annelin, who works throughout the region.

Annelin says that while the buying market has cooled somewhat from its pandemic-era peak, activity remains steady.

“There’s a good balance right now,” he notes. “It’s not the frenzy we saw a couple of years ago, but good homes are still moving.”

One way to get more for your money? Be flexible. Annelin says that buyers who are able to move quickly and present a clean offer—with fewer contingencies and reasonable terms—often have a better shot at landing the home they want. But even if a house looks great on paper, Annelin stresses the importance of a home inspection.

“There are a lot of hidden issues that can turn into major expenses—especially now when it can take months to get on a contractor’s schedule,” he explains. “A $50,000 project isn’t just about cost—it could mean a year-long wait.”

He also warns buyers not to get too caught up in cosmetic issues. “It’s easy to get distracted by surface-level things like paint or outdated fixtures,” he says. “But those are the easiest things to fix.”

Annelin advises buyers to think not just about the house, but how the location fits their lifestyle. Commute times, township taxes, and access to community amenities can all significantly impact your experience—and your budget.

“People don’t always realize how much taxes can vary,” he notes. “When you buy, the taxable value becomes uncapped, and your property tax can jump quite a bit—especially if the previous owner had it for a long time.”

As for up-and-coming areas, Annelin points to small towns like Frankfort, Kingsley, Cedar, and Fife Lake.

“They’ve got charm and potential, and they’re not far from larger hubs like Traverse City,” he says. “But keep in mind the market in smaller towns can be more volatile—great if you plan to stay, but maybe riskier for a flip.”

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