Looking into selling a house “as is” in Michigan? Whether you’ve got a fixer-upper or recently inherited a relative’s home, sometimes you’d rather skip the repairs, get a fair offer, and move on. Ryan Dosenberry, Founder and CEO of Lakeshore Home Buyer, says that sellers unable or unwilling to make repairs is one of the most common reasons houses are sold “as is.” “They don’t want to make the repairs themselves to lift the house for sale with a realtor. Most of the time, if the house needs any repairs, most realtors expect the homeowner to make the necessary repairs before they lift the house on the market.” he says. Dosenberry also owns and operates Crushing REI, a real estate investment website. “They don’t have the time. They don’t have the money, they’d rather just sell the house as is. Most of the time, the type of buyer that will buy a house like that would be an investor or somebody who works for a company that fixes homes up and resells them, as our company does.” he adds. However, selling a house “as is” usually means accepting a lower offer, and it doesn’t always prevent buyers from trying to negotiate savings. Let’s look at selling a house “as is” in Michigan, your options for getting an offer, and what to expect from the process. County real estate transfer tax: $0.55 – $0.75/$500 depending on +/- 2 million county population. “As is” is a type of home sale where it’s understood that no improvements will be made to the property. When selling a house “as is.” the seller chooses not to entertain buyer requests to complete repairs or provide a credit for fixes. An as-is sale may also indicate that the functionality and longevity of certain home components, such as a stove on its last legs or an older roof, is not guaranteed. When selling a house “as is” the property’s general condition should already be accounted for in the home’s purchase price to the best of the seller’s knowledge. Homes sold “as is” often need work or might be cosmetically outdated. It’s not a label you’ll likely put on a listing in pristine, move-in-ready condition. “As is” sales often attract investors searching for their next flip or buyers seeking a bargain, perhaps on a home in a great location with lots of potential. Selling a house “as is” in Michigan doesn’t mean sweeping known problems about the house under the rug. A good time to fill out the Michigan Seller Disclosure Act, Act 92 of 1993, courtesy of the Michigan Legislature Website, is before listing your home or requesting an offer so that you know it’s taken care of. The Disclosure Act requires you to list your knowledge of the property, along with the condition, and any appliance systems or structural or mechanical defects the property might contain. The form will walk you through documenting what you know about the property’s structural, mechanical, and appliance systems. This can include but is not limited to, the status of the property’s foundation, plumbing, washer/dryer machines, and more. The form will include prompts for you to fill out information about: Appliances Range/Oven Dishwasher Refrigerator Hood/fan Disposal TV antenna TV rotor & controls Garage door opener and remote control Central vacuum Attic fan Microwave Ceiling fan Washer Dryer Humidifier Systems Electrical system Alarm system Lawn sprinkler system Plumbing system City Water System City Sewer System Central air conditioning Central heating system Electronic air filter Solar heating system Wood burning system Mechanical Intercom Pool heater, wall liner, and equipment Trash compactor Water heater Well & pump Structural Sauna/hot tub Water heater Water softener/conditioner Septic tank and drain field Sump pump Wall furnace Solar heating system Fireplace & chimney No matter what method you choose to sell your home, you must make these disclosures to the best of your ability. However, exceptions exist, such as if the home was inherited or ownership was transferred. Be sure to consult the state’s Seller Disclosure Act fully to understand what exceptions might exist for you, or consult a real estate agent if you need further assistance. The main options to sell a house ‘as is’ include: A great real estate agent will assist in listing and selling a home “as is” An agent gives simple presentation tips to improve marketing, helps to set an appropriate price that reflects the home’s condition, and works to find a buyer willing and eager to buy your home in its current state. Jeff Todd, a top-selling agent in Rochester Hills, Michigan, with 39 years of experience, says that would-be as-is sellers should take the steps to properly prepare and clean their homes if they want to get the highest possible value for their property. “A lot of people will say that I don’t have to paint our carpet because the new buyer will go with their own choices. I always explain to them that you get essentially $3 for every dollar you spend on painting. For flooring, you get more than what you usually invest, plus it helps it sell. When it comes to cleaning up a house, I highly recommend they stage it properly, clean it, and do all those things to help it sell.” he says. Someone needing to sell their home “as is” can also work directly with a property investor or house-buying company rather than a list, where getting an offer from a limited buyer pool may be difficult. We Buy Houses operations buy “as is” at a discounted rate and generally seek out homes needing significant repairs. These companies can help sellers cash out quickly, and many will cover a seller’s closing costs. Dosenberry says there are misconceptions about working with such companies and points to savings in closing costs as one of the biggest benefits, as such companies usually handle that side of the transaction. “I think a lot of people think that they’re going to be leaving money on the table and that they will not get the same amount of money with me versus if they listed the house with an agent.” Dosenberry says. “What I would say is most of the time, we end up purchasing the house for a very close to what they might net out with an agent if they listed the house on the open market, and that is mainly because they are not paying any realtor commissions or paying any closing costs with my company or companies like ours.” he adds.Fast facts about selling a house ‘as is’ in Michigan
Median sales price in Michigan
$291,186
Average days on market (DOM) for Michigan
42 Days
Disclosures
Michigan law requires sellers to disclose material facts about the property through the Seller Disclosure Act (Act 92 of 1993).
MLS has a field to mark a listing “as is”?
yes, according to Jeff Todd.
Is a real estate attorney required?
Real estate attorneys are not considered essential for closing in the state of Michigan.
Real estate transfer taxes?
State real estate transfer tax: $3.75/$500
What is ‘as is’ condition in real estate?
Which types of homes are sold ‘as is’?
What problems do you have to disclose in Michigan?
Review your options to sell ‘as is’ in Michigan
List ‘as is’ with the help of a real estate agent
Sell directly to a cash buyer
