Eager to sell your home swiftly in the Great Lakes State? Accelerating the typical process — listing the home, fielding offers, negotiating, then waiting for your buyer’s financing to be approved — requires a strategic approach and careful preparation. Fortunately, home prices in the Michigan housing market are on the rise, propelled by strong demand from prospective buyers. The median sale price as of March 2024 was up 6.7 percent over the previous year, according to data from Redfin, and the homes that sold went into contract four days quicker than last year as well. Read on to learn how to expedite the process and sell your house fast in Michigan.
How fast can you sell your home in Michigan?
Homes in Michigan spend a median of 29 days on the market before selling, per March Redfin data. That’s nearly a full month of showings and negotiations before finally going into contract with a buyer, after which you’ll typically have to wait even more time for your buyer’s financing. And fewer homes are selling now than they did last year — volume is down 14 percent — likely due to today’s high mortgage rates. If you start thinking about listing your home before the cold Michigan winter is over, you can take advantage of the prime spring/summer homebuying season, usually thought to be the best time of year to sell a house.
Need to sell faster?
What if you don’t have more than a month to wait? Perhaps you need to relocate ASAP for a new job opportunity, for example. If the swift sale of your house is a priority, there are ways to speed up the process:
- Sell as-is: If your home requires repairs that you’re hesitant to invest in, or spend time on, listing it as-is could move things along more quickly. This indicates to the buyer that the home is being sold in its exact current condition, which can save considerable time on lengthy back-and-forth negotiations over repairs.
- Sell to a homebuying company: These fix-and-flip operations specialize in speed. They make quick cash offers, often within 24 hours, and many can close the entire deal within a week or two, rather than a month or two. However, keep in mind that cash-homebuying companies do need to make a profit on each transaction, so they are not likely to offer you a very high price for your home.
- Sell to an iBuyer: When time is of the essence, iBuying companies offer a similarly swift solution. If you are in the Detroit area you may be able to work with one of the industry’s biggest players, Opendoor, which buys homes in the Motor City.
- Be flexible: Sometimes, the best way to speed up a deal is to grease the wheels a bit. Lowering your price slightly or offering seller concessions can make the home more appealing to buyers, and get you more offers faster.
Find an agent to help you sell your home fast
Working with an experienced local real estate agent who knows your Michigan market well is the best way to bring in the highest price possible. Selling with a real estate agent won’t be as fast as an iBuyer or cash-homebuying outfit, but these pros do know how to expedite a sale if necessary. Be clear that speed is your top priority, and ask your agent to come up with a plan to market the home accordingly.
A capable real estate agent plays a pivotal role in connecting you with potential buyers and takes on vital responsibilities such as marketing, showcasing and negotiating the best deal on your behalf. Interview several candidates before choosing one, to find someone whose approach corresponds with your needs and who you trust to work in your best interest.
It’s important to note that Michigan law allows for dual agency, wherein your agent or another from the same brokerage may also represent your buyer. That’s not necessarily a bad thing, but there is a potential conflict of interest, so a written agreement is required in these cases.
Sell your home fast for fair market value
If you choose to follow the traditional path with a real estate agent, here are some key questions to discuss prior to listing to have the best chance at a full market value sale price:
How should you price your listing?
How much is your house worth? Striking the right balance on asking price is crucial. Your agent will know the local market conditions and buyer trends in your area — let their expertise help you set a price based on market data and local comps, or sales of similar properties nearby.
Is it worth upgrading your home before selling?
While embarking on a major project like a kitchen renovation may appear promising for a significant return, the reality often differs. Most renovations fail to recoup their entire costs upon resale. Instead of undertaking a sizable remodel, which will both cost you money and delay your sale, consider cost-effective solutions to elevate your property’s appeal instead. For example, upgrading your curb appeal with some fresh paint and potted flowers is both effective and affordable.
What should you fix before listing?
It’s probably smart to tackle visible issues like chipped paint, raised floorboards or a leaking bathroom sink to avoid deterring potential buyers. However, you don’t need to fix every tiny imperfection — your agent can help you determine what to fix before you list and what not to bother with.
Is home staging worth considering?
Cluttered rooms and layouts that don’t flow well can keep your home from making a good impression on potential buyers. If the home is full of many years worth of stuff — or if you’ve already moved out and it’s completely empty — it may benefit from a bit of professional help. Staging your house can capture buyers’ attention and help them imagine themselves living there. In fact, according to a 2023 survey by the National Association of Realtors, 20 percent of agents said that staging resulted in a 1 to 5 percent increase in the dollar value of a home, compared to similar unstaged homes on the market.
What must be disclosed to the buyer?
Most sellers in Michigan are required to complete the state’s residential property disclosure form. This involves providing details about any known defects that could impact the home’s value or safety, such as previous roof damage, leaks, termite damage or electrical problems. Additionally, for properties governed by homeowners associations, you’ll need to provide all relevant HOA documents, including bylaws and financial information.
Closing day
Closing is the culmination of your home sale, signifying the conclusion of the transaction. This is when closing costs and all other funds are actually paid. As the seller, your biggest expense will likely be paying your real estate agent’s commission (as well as your buyer’s agent, at least until the commission rules change in July). Other common closing costs for sellers include:
- Transfer taxes: Michigan is one of many states that levy charges for transferring property ownership to a new owner, and it’s typically sellers who cover the cost of this tax. The state’s transfer tax rate is $4.30 for every $500 in value. So, if your home sells for $250,000, that means you’ll probably pay about $2,150 in transfer taxes.
- Title insurance: Title insurance policies protect against problems with the home’s title and ownership. Who pays for these policies — one for the new owner and one for the lender — is typically negotiable and will likely differ with each transaction.
- Attorney fees: While the state of Michigan does not require home sellers to hire an attorney, doing so anyway is usually smart when there’s this much money at stake. Legal fees will differ with each transaction.
- Seller concessions: You’re not required to offer any concessions to your buyer. But if you do agree to, say, cover the cost of a needed repair, then that amount will be one of your closing costs. Concessions are a standard part of the negotiation process, especially if you’re hoping to move a sale along quickly.
- Mortgage payoff: If the home you’re selling still has an outstanding mortgage on it, the remaining amount will be subtracted from your earnings to pay off the loan so that ownership can be transferred.
FAQs
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Choosing a cash-homebuying company or an iBuyer will be the fastest way to sell your Michigan home. These operations make quick cash offers and can close a sale in a matter of a couple weeks, or sometimes faster. However, this is not the most lucrative way to sell — opting for a traditional sale with a local real estate agent is likely to fetch a higher price, though it will take longer.
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Yes. You aren’t required to hire a Realtor to sell your home in Michigan, or any state. A “for sale by owner” (FSBO) transaction saves you paying a listing agent’s commission fee, typically 2.5 or 3 percent of the home’s sale price. However, FSBO sales require significant effort: You’re taking on all the responsibilities that an agent would typically handle, including preparing the home for sale, pricing it accurately, marketing it to potential buyers, scheduling and hosting showings, negotiating offers and dealing with paperwork. It’s time consuming, and a mistake can be costly.
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