Going through the traditional process of selling a home — hiring a real estate agent, listing your property and waiting for offers to come in — requires time and patience. In Michigan, if you’re short on either of these things, you might consider selling to one of the state’s many “we buy houses” companies instead.
Also known as cash homebuyers, these businesses work quickly, often extending all-cash offers in less than a day and closing deals in just weeks (or less). That’s much faster than the typical home sale timeline in Michigan, where houses spent about 29 days on the market before going under contract in March, according to Redfin. They also typically buy homes as-is, meaning you don’t have to make any upgrades or repairs.
While the speed and convenience are certainly appealing, selling your home this way does have a big drawback: You’ll probably pocket less money than you would from a traditional sale. Let’s look at some of the companies that buy houses in Michigan, how they operate and what you can expect when working with one.
Types of companies that buy houses for cash in Michigan
There are all kinds of cash-homebuying companies operating across the Great Lakes State, including well-known national franchises, local firms and online-only businesses. All will make quick cash offers, sometimes same-day, and close on a fast timeline too.
National options
You’ve probably seen advertising from HomeVestors, one of the biggest cash homebuyers in the country, known for the slogan “we buy ugly houses.” The company has local branches in Ann Arbor, Detroit, Flint/Saginaw and Grand Rapids and can close a sale in as little as three weeks.
We Buy Houses is another national chain with a similar business model. It purchases homes throughout Michigan and can close within a week or two.
Local options
Michigan also has its fair share of locally owned “we buy houses” companies, including:
- Hometown Development Company: This Grand Rapids–based business focuses on buying houses in western Michigan. After viewing your home, they will extend a cash offer within 24 hours and can close in as little as five days.
- We Buy Houses Right Now: Based in Troy, this family-owned business will make a same-day cash offer after visiting your property and close in seven to 10 days.
- Blue Moon Acquisitions: Headquartered in the northern suburbs of Detroit, this outfit provides an offer within 24 hours and can close in a week or less, or on a timeline that works for you.
iBuyers
The online-only companies known as iBuyers work in a similar fashion, making quick cash offers, but unlike other cash-homebuyers, they don’t usually buy homes in poor condition and sometimes charge steep fees. Of the two main players, Opendoor and Offerpad, only Opendoor buys houses in Michigan — and only in Detroit.
How do ‘we buy houses’ companies work?
Most “we buy houses” companies have a similar business model. They typically offer cash for homes in as-is condition, no matter how poor, so owners don’t need to spend money or time repairing, renovating or even cleaning up their house before selling. Keep in mind, though, that their plan is to fix up the property and resell it for a profit — so the more work they have to do to bring the home up to speed, the lower the price they’ll likely offer.
If you’re thinking about selling your home to one of these businesses, you’ll start by contacting the company and providing some basic info about the home. Many companies will then schedule an in-person visit from a representative to assess the property, but some businesses do everything online.
After the assessment, you’ll receive a no-obligation, all-cash offer — sometimes on the spot, but more commonly, a day or two after the walk-through. You can mull it over, but be mindful that these offers generally have expiration dates. Also, cash homebuyers usually won’t negotiate on price. If you decide to accept, you can often close in weeks or even days, on a timeline of your choosing, and you usually won’t have to pay any closing costs, commissions or service fees. Be sure to read the paperwork carefully, and don’t sign anything you don’t understand.
Speed and convenience are the main benefits of working with cash homebuyers. The trade-off, of course, is that the offers you receive from these companies will likely be lower than what you’d get on the open market if you sold the traditional way.
Alternatives
On the fence about selling to a “we buy houses” company in Michigan? Here are some alternatives to consider:
- Hire a real estate agent: Yes, selling with an agent takes longer than it would with a cash homebuyer. But it gives you a better chance to pull in a higher profit — and if you tell your agent upfront that speed is of the essence, they can market the home accordingly.
- Sell it yourself: If you’d rather go it alone, you can take the “for sale by owner” route. In that scenario, you wouldn’t need to pay a listing agent’s commission, but you would have to do all the work an agent would normally do yourself. It’s a lot, and on a transaction this large, a mistake could be costly.
- Rent it out instead: If you aren’t urgently in need of the money from a sale, you might consider renting out your home for extra income. The median rental price for a home in Michigan is $1,500 per month, according to Zillow Rental Manager, and a bigger home or a popular location could bring in even more.
Next steps
Selling to a “we buy houses” company is worth considering in many situations. For example, if you need to sell as quickly as possible because you’re relocating for work, or if you inherited a house and don’t want to deal with the work (or expense) of fixing it up to sell. Even if you’re just curious about how much they might pay for your house, you can request quotes from a few companies — there’s no obligation to accept.
However, if your priority is earning top dollar on your home sale, you’re better off working with an experienced local real estate agent who knows the Michigan housing market well. It might take longer, but it will help you bring in as much money as possible.
FAQs
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Yes. You don’t need a Realtor to sell a home in Michigan, or any other state — selling without one is called “for sale by owner,” or FSBO for short. But most sellers use an agent anyway. A lot of work goes into a successful sale, from creating a compelling listing to coordinating showings to negotiating price and contract terms. Real estate agents know their local market inside-out and will work to get you the best price possible.
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Yes, most cash-homebuying companies are legitimate businesses that purchase houses for less than market value, then fix and flip them to turn a profit. Still, it’s always a good idea to do your research before agreeing to work with one. This can mean checking out the company’s online reviews, looking up its Better Business Bureau profile and reviewing all paperwork very thoroughly before you sign anything.
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