If you’re thinking about selling your house, here’s how much money you can get
Sellers are asking about cash for houses in Michigan – they want to know how the get the most out of selling their house. If you’re thinking of selling and wondering how much you might get, this blog post will help to answer that question.
An Important Definition
Since this blog post will be read by people all over Metro Detroit and Ann Arbor (and surrounding areas), with various price prices reflected throughout the area, it’s difficult to write about a specific dollar figure. However, here’s an important concept that will help you understand how much people pay cash for houses in Michigan…
On The Market: When a house sold “on the market”, that means it’s usually listed by a real estate agent on the MLS (or Multiple Listing Service). The house is typically listed for 7-10 days (sometimes more or less) and after several potential buyers have seen the property, at least one has made an offer. Houses sold on the market will often be sold for approximately the same amount that other similar houses in the area have sold for. This is called “market price”.
Off The Market: When a house is sold “off the market”, that usually means the homeowner has decided to sell their home directly to a buyer instead of list their home for sale with a realtor, where it is advertised on the MLS. Houses sold off the market will often be sold for slightly less than their market price, this is called “below market price.”
You might be reading this and asking, “why would anyone accept below market price, and less cash for houses in Michigan than others?”
That’s a good question but there’s more to the story:
- Selling on the market usually means you’re listing it for sale with a real estate agent and selling it to a person who will choose to live in the house. They’re buying the house for themselves and their family. Most often, this will take some time to prepare the property to be sold and time to actually have it listed and available for public showings. But when you sell off the market, you’re often selling to a company that might be investing in your house to turn it into a rental property or to renovate it and sell it.
- Selling on the market usually means the buyer needs financing. Typically when a buyer needs financing, the mortgage company will need approximately 30 days to appraise the home and secure the loan for the buyer. Selling off the market, in a private sale, often means that a professional home-buying company is will to pay cash for houses in Plymouth. (That’s why some people prefer to sell off the market – they don’t want to wait for the seller to get the appraisal and be approved for the financing). In today’s market many homes are not appraising for the sales price which can create another layer of complexity. Either the buyer has to come to closing with some cash or they want to negotiate a reduction in sales price. ; they want to know they’ve sold the house right away).
- Selling on the market actually costs money… sometimes a lot of money. If your house needs to be cleaned, painted or needs repairs, you usually have to spend money to fix up your house before you sell it on the market. However, when you sell it off the market, such as to a company like us at Amy Buys Houses MI, you may be able to sell your house AS-IS – saving the money you would have spent to list it.
- Selling on the market through an agent will often result in commissions and fees to the agent for the work they did to sell your house. Commissions in Michigan are typically 6% of the sales price. When you sell your home on the market you are also responsible for closing costs which can be another 1-2%. But selling off the market to a home buying company like Amy Buys Houses MI usually means no commissions or fees or closing costs. Amy Buys Houses MI does not charge commission, closing costs or selling fees.
How much can you get for your home? Selling on the market may mean you sell your house for more money but it takes longer and costs more; selling off the market may mean you sell your house for below market price but it’s faster and there are no expenses or fees.
So, how much will sellers get in cash for houses in Michigan? It depends on how you sell – on the market or off the market… and that is determined by how quickly you want to sell and how much time and money you’re willing to invest to sell.