Selling a Home As Is in Michigan (A-to-Z Guide)

A residential house sold ‘as is’ in Michigan is offered by the seller in the condition the buyer finds it in at the time the sales contract is signed.

The seller accepts no responsibility to repair, replace, or rehab anything before the sale.

The standard sales contract in Michigan doesn’t include an ‘as is’ condition clause, so the seller must use a property disclosure to let the buyer know the home is being sold without any warranty.

Yes, you can sell a home ‘as is’ in Michigan.

Sellers must present the buyer with a written inventory that lists any defects or problems with the property.

The homeowner must also allow buyers access to the property for inspections done by professionals. Buyers have the responsibility to pay for these home inspections.

Before we answer the question, “How does selling a house ‘as is’ work in Michigan?” we need to do a deep-dive into the residential property disclosure required under Michigan law.

Michigan adopted the Seller Disclosure Act in 1993. It requires homeowners to inventory their home before selling. This includes disclosing any defects or problems.

Sellers must provide prospective buyers, or the buyer’s agent, with a written copy of the disclosure form.

Owners should be transparent on this form and share known conditions affecting their property.

Failure to disclose can mean fines for sellers who misrepresent or purposely fail to answer questions on the disclosure form in an attempt to defraud the buyer.

However, the homeowner doesn’t need to hire a property inspector to complete the form. It’s enough to disclose known facts.

Conditions include anything that would impact the value of the house, or things that risk the health and safety of the new owners.

The formal disclosure lists a number of home features and finishes and a checklist where owners can simply check “yes” or “no”.

There is also a category where owners can check that they’re unaware of the condition, or the category doesn’t apply to the house.

For example, if the house doesn’t have central air conditioning, the form allows the owner to use “N/A” (not applicable) for that question.

All of the categories have a section for the owner to explain the circumstances for the answer.

Homeowners can also attach separate sheets and documents to the disclosure form to explain problems or conditions.

Selling a house with unpermitted work, or work done by a contractor working without a state license, must be disclosed.

Selling a home with asbestos and selling a house with lead pipes require comments from the homeowner.

Sellers who have had radon or mold testing done on the house need to disclose these tests.

Owners selling a house with septic system failure, or one with foundation problems, need to explain these conditions to prospective buyers.

Selling a house with fire damage must include an explanation of the damage. Property owners selling a house with termite damage need to note that on the disclosure.

Selling a house in a flood zone doesn’t require the homeowner to provide a copy of the zoning, but disclosing water infiltration, erosion, and water damage is a category on the disclosure form.

Selling a house with polybutylene pipes, or homes impacted by hydraulic fracturing operations, (fracking) isn’t a category on the form, but if it negatively impacts the home’s value, the buyer must disclose.

Owners of houses constructed prior to 1978 must complete a federal lead paint disclosure, informing buyers of the hazards of lead paint and how to mitigate the dangers.

Michigan also asks owners selling a house with lead paint to note that on the state-required form.

While selling a haunted house or one with an infestation of bed bugs isn’t specifically asked on the Michigan disclosure form, the seller should be totally transparent about these issues.

You can leave stuff behind when you sell your Michigan house ‘as is’, but only if both seller and buyer agree to some specific conditions of the transfer.

Answer the question, “Should I sell your Michigan house ‘as is’ or fix it up?” by considering the time you have to repair the house yourself or by assessing the time you have to supervise others doing the repairs.

Evaluating the advantages and disadvantages of each approach can help you make up your mind to fix or just list.

Why sell a Michigan house ‘as is’? Let’s see.

Pros of Selling Your House As Is

• You’ll skip the chore of locating and overseeing contractors to repair your house.

• ‘As is’ sales typically close faster than traditional sales since the sellers don’t need to take time to do home repairs. This is especially true with a company that buys houses in Michigan — such companies advertise quick sales.

• Most ‘as is’ buyers don’t nitpick over home repairs, even after a buyer receives a report from a Michigan home inspector. A buyer of a fixer understands the property is offered as a fixer, not a turnkey property.

• Once a property inspector files a report on your house, it needs to be shared with all prospective buyers. You’ll eliminate some of these reports when selling ‘as is’, since buyers looking to purchase fixers may not require a report before making an offer to buy.

• Most ‘as is’ buyers will allow sellers to leave the house at closing without asking to have it cleaned. Many will even allow sellers to leave items behind in the house.

• You’ll save the costs and fees normally paid during the time when the home would be off the market and under repair. These include utility fees, mortgage interest, and property taxes. These fees can be significant, especially when repairs take time to complete.

Cons of Selling Your House As Is

• You won’t sell your house for as much as you could if you repaired it. Buyers typically deduct the cost of the needed repairs and their time to do them. You do save time, however, and time may add up to some cash savings. Examining the estimated closing costs for sellers helps you determine if the offers give you what you need to accept the price.

• Most buyers want to purchase properties that require little or no repairs. Your buyer pool will be limited with an ‘as is’ home sale. The exception is investor buyers. They enthusiastically look for fixers. We’ll talk about this type of buyer in the next section of this article.

Once you’ve decided to fix or simply sell, the next question is, “How do I go about selling my house ‘as is’ in Michigan?”

There are a number of ways to list and sell your house in the Wolverine State. Let’s begin with selling your house to a cash real estate buyer in Michigan.

How to Sell a House As Is, Fast and For Cash Directly to an Investor

Who Are Cash House Buyers?

If you sell your home to a real estate investor, you’ll be working with a person or a business that won’t be contingent on being approved for a mortgage to purchase your property.

Investors use their own cash, or they borrow money from private lenders. This process moves much more quickly compared to a traditional mortgage loan from a bank.

Cash buyers look for Michigan real estate investment opportunities. This might mean buying rentals, or it could mean buying properties that need repairs to rehab and resell to others.

Michigan property investors help people who need a quick sale, including:

• heirs inheriting a house and selling it
• homeowners selling a damaged house
• couples selling marital property during divorce
• seniors selling to downsize
• workers selling a house for job relocation
• homeowners selling a home when facing foreclosure
• property owners selling a house with taxes owed

Michigan investor-friendly title companies work with local investors to ensure the property transaction closes quickly. They have experience in closing rapidly.

Pros of Selling Your House As Is Directly to an Investor

• A company that buys houses generally means a fast sale. They have experience purchasing fixers and aren’t bothered by the fact the house needs some repairs.

• Since the sale is a cash transaction, there’s no need for loan applications, house appraisals, or the time spent waiting to see if the underwriter approves a loan. This saves weeks of wait time.

• Investors typically don’t use a real estate agent, so if you skip agent representation, you’ll both forgo paying any real estate commissions.

• Cash buyers typically pick up their closing costs and the seller’s closing cost. This can be a significant savings for the seller.

Cons of Selling Your House As Is Directly to an Investor

• You won’t receive market value from an investor. They’ll deduct the cost of repairs from their offer, which will already be lower because they need to buy cheap to sell at a profit.

• You won’t have a real estate agent to protect your best interests in the transaction. If you work with an investor who has years of experience in the industry, you’ll receive an offer and terms that are fair to both parties in the transaction. Investors don’t stay in business long by failing to act ethically. However, an investor is not your fiduciary.

Finding the Best Cash House Buying Company

How can you find cash house buying companies so you can compare some offers? That’s the easy part.

To find investors online, you can use some basic search terms like these:

• we buy houses in Lansing MI
• sell my house fast in Lansing MI
• cash house buyers in Lansing MI
• sell my house for cash Lansing MI
• iBuyer companies in Lansing MI

But how to find someone who won’t take advantage of you? Let’s talk about it now.

How to Choose an Ethical Investor?

Look for companies who have an “About Us” page and investigate there. Note the years of experience in investing for each prospective investor.

Three years should be a minimum to ensure you’re dealing with an experienced investor.

You can also investigate the people and companies on your list a few other ways.

Go to the Better Business Bureau (BBB) website, and locate the BBB branch closest to your house. Look for any complaints filed there against the investors on your list.

Also, search online consumer review sites to see if clients have posted complaints about the people and companies on your list.

If you’re finding complaints on these two sites, move to the next name on your list.

If all this seems like a lot of work, it is. You can do this another way that takes far less time and effort by clicking on a few links on the HouseCashin website.

We’ve done the prescreening and background research for you. You’ll receive up to five offers from HouseCashin’s partner companies.

You can also do your own research on each company or investor after receiving their offers. There’s no fee for receiving offers. And you aren’t on the hook to accept anything by requesting them. Request your cash offers now.

If you want to explore more selling options before making a final decision, let’s cover a for-sale-by-owner listing next. It’s known as an FSBO in the world of real estate.

How to Sell a House As Is by Listing It by Owner

Listing your home on your own is called “for sale by owner” or FSBO. This is the method to take if you want full control over the selling process.

While you can sell your home independently, it’s important to know how much your property is worth. You can get an estimate by using a house value calculator.

This tool helps you figure out an approximate price to ask for your property by considering market trends and comparable homes (assuming it doesn’t require major repairs).

With that out of the way, you can then take care of other steps in the FSBO process, starting with finding the right buyers for your listing.

Where Can You List a House For Sale by Owner?

“For sale” signs on the lawn work well to attract prospective buyers in some areas. Signs do require a significant amount of foot and vehicle traffic by the house to be effective.

Be sure to include a contact number where you can be easily reached to answer questions about your property.

Creating a website that features images of your house is one way to share a home tour without requiring you to be at the house for potential clients to walk through your listing.

Posting a professional video on social media websites such as YouTube may draw a number of views for your listing.

Websites for selling homes by owner offer another outlet to have your listing before potential buyers. Some are free, while others charge a nominal fee to post.

Pros of Selling Your House by Listing It by Owner

• Michigan real estate agents earn 5-6% of the sale price as a commission. This covers the seller’s and the buyer’s agents’ fees, both of which are paid by the seller. When you list your house and serve as your own agent, you’ll eliminate the seller’s portion of that commission fee.

• As an FSBO, you decide every detail associated with your listing and sale. You can set your own calendar for listing and the sale closing.

• Your home is your only focus. While agents have multiple clients, your house is your only listing. You can devote all your time to selling your house.

Cons of Selling Your House by Listing It by Owner

• In an FSBO sale to non-investors, you’ll need to accommodate buyers who need a mortgage to buy your property. That involves making sure your house appraisal matches the price your buyer agrees to pay. This can be a chore when a property is a fixer.

• You won’t have the ability to consult with a real estate agent when problems arise. You are your own fiduciary when you list and sell by yourself. Understanding the basic closing costs when selling a home by owner, details of the listing and sales contracts, and the legal requirements of the disclosure are just a few of the details you’ll need to master when working as your own agent.

• Unless you have training and experience in selling real estate, you may make some mistakes in marketing and selling your house. These can cause delays. You also may have a lawsuit filed against you when your mistake is more than minor.

The final way to list your home is to hire a professional real estate agent to represent you in the sale.

Who Are Real Estate Agents?

Real estate agents are professionals who are trained to represent clients in real estate transactions.

If you hire an agent, they will determine the highest price it could be sold for, find a buyer, and negotiate with them and their agent, as well as take care of all legal intricacies.

Real estate agents work as part of a real estate brokerage, with a licensed broker supervising the transactions of the office.

The National Association of Realtors (NAR) is a professional trade organization that promotes ethical real estate practices. Agents using the title “Realtor” are members of the state branch of the NAR.

Pros of Selling Your House As Is with a Real Estate Agent

• Local boards of Realtors collect information about local property sales. This information is available to members to assist in setting high enough and, at the same time, realistic listing prices for comparable properties. Without an agent and experience in real estate, it’s challenging to correctly price a house for sale.

• A Realtor is a professional who takes an ethical oath to be your fiduciary in the sales transaction. That means your agent represents you and places your interests above all others.

Cons of Selling Your House As Is with a Real Estate Agent

• The average Realtor cost to sell a home is the largest part of your closing costs in Michigan. Hiring a Realtor to represent you in the sale will mean you pay 2.5-3% of the sales price to your agent as a sales commission.

• Agents typically have a number of clients that require assistance. Your agent will divide time between clients, and you’ll be one of many. Fixers generally move slowly in the real estate market, so you may wait a considerable amount of time for your house to sell.

• An agent will bring you buyers most of whom need mortgages to purchase homes. Your buyers will take time to apply for a loan, time for an appraisal of the house, and then require more time to receive the final loan approval from underwriters before they can close the transaction on your house.

How to Choose an Ethical Real Estate Agent?

The fastest way to locate a real estate agent is to ask family, coworkers, and friends for their recommendations.

Those recommendations need to be vetted on another level when you’re selling a home in Michigan that needs repairs.

Marketing a fixer requires specialized skills. Your list of agents should have those skills to sell your house quickly.

You also want to be sure that your agent is experienced. It takes at least three years to understand the real estate industry and become a good agent.

If you’re not familiar with the agents, a quick check of several resources helps determine if the agent is ethical.

One place that will help in your research is the local branch of the Better Business Bureau. The BBB websites list complaints filed against agents for unethical business practices.

The other place for research is the local board of Realtors. Local boards receive complaints against member Realtors, and they keep records of these complaints.

If your Realtor has been reprimanded or fined, or the agent has had a suspended membership, it may be wise to select a different Realtor from your list of prospects.

Some insights about your agent might also be found by reading the online reviews on consumer websites. You’ll find both negative and positive comments about agents there.

If you’re seeing a number of negative comments, that’s a sign you may need to consider another agent.