Streamline Your Home Sale With Cash Home Buyers in Michigan

Inside the Michigan cash home buyers market

Michigan’s cash home-buying market draws in all sorts of buyers, from homeowners selling homes to investors to those simply seeking a more straightforward purchase process. Let’s explore some of the common types of cash buyers who might be interested in your property and what drives them.

New residents

Michigan cities like Detroit and East Lansing are drawing new residents from across the country. According to Census Bureau estimates for 2023, Detroit gained 1,852 new residents between July 1, 2022, and July 1, 2023. This marks the first time since 1957 that Detroit’s population has grown year-over-year. East Lansing also saw population growth during this period, adding 1,266 new residents.

Some of these newcomers, especially those from higher-priced cities and states, may be equipped to purchase homes in cash. In Detroit, for example, 40.9% of home purchases in February 2024 were all-cash deals, up three percentage points compared to the same period a year earlier. That’s slightly higher than the national average of 34.5%.

Baby Boomers

In Michigan, 2 million residents, or about 25% of the population, are over 60 years old. Additionally, 37% of the state’s population is aged 50 or older. Michigan has one of the oldest populations in the country, ranking among the top 15 states.

Mature buyers are more likely to purchase homes outright as they settle into retirement or downsize. Not having to worry about monthly mortgage payments provides greater financial stability, which is especially important to those on a fixed income.

Across the country, 51% of Older Boomers (born 1946–1954) paid all cash for home purchases they made in 2023, as did 32% of Younger Boomers (born 1955–1964). For Michigan’s substantial population of older adults, homes with aging-in-place features and low-maintenance living are highly sought-after. Highlighting these features in your listing description can capture the attention of older, cash-ready buyers.

Property investors

Homeowners in Michigan are likely to encounter various types of property investors, including institutional buyers, house flippers, buy-and-hold investors, wholesale investors, and iBuyers. Selling to these cash buyers can often result in a faster sale process compared to traditional buyers, particularly in areas undergoing economic growth or redevelopment.

In Detroit, investors accounted for 19.3% of all home sales in the fourth quarter of 2023. The Motor City also had the highest percentage of home flips purchased with all cash (81.6%) out of any U.S. metro area in 2023, according to ATTOM, a leading provider of real estate data. Michigan’s growing number of real estate investors and trend towards cash purchases might give homeowners more choices for selling their property quickly and efficiently.

Pros of working with a Michigan cash home buyer

Selling your Michigan home for cash can be a convenient option if speed and a hassle-free sale process are important to you. Here’s a closer look at some of the key benefits of working with a cash buyer in Michigan:

How to request a cash offer in Michigan

HomeLight’s Simple Sale platform offers a streamlined approach for homeowners to quickly receive cash offers on their properties. By filling out a few basic details about your home, you can tap into a broad network of pre-approved investors ready to make a competitive offer. Within just 24 hours, you’ll have a no-obligation, all-cash offer in hand. If the offer fits your needs, the closing can take place in as few as 10 days — allowing you to skip the expensive repairs, professional staging, and open houses. Plus, you can set your own timeline for moving out, up to 30 days post-closing.

It’s important to remember that while this route offers convenience and speed, cash offers through platforms like Simple Sale are typically lower than what you might achieve in the traditional market. Although fees for selling a house can consume 9% to 10% of your sale price. Depending on your circumstances, the lower cash offer might still make financial sense when considering the overall costs and time saved.

How much are Michigan cash home buyers willing to pay?

When opting for the speed and convenience of selling to cash home buyers in Michigan, sellers often accept offers that are below what they might receive on the open market. One common guideline followed by house flippers is the 70% rule, which suggests that investors pay no more than 70% of the after-repair value of a home, minus the costs of any needed repairs. This rule helps ensure a profit margin for the investor after the home is renovated and sold.

The competitiveness of Michigan’s housing market can influence how closely cash offers align with market values. In a hot market, cash offers may approach closer to the full market value as buyers compete for available properties. In a slower market, cash offers are likely to be more conservative, reflecting the reduced competition and buyers’ advantage. It’s important for sellers to understand these dynamics and set realistic expectations about below market value offers in different market conditions.

What’s the process of selling to a Michigan cash home buyer?

If you’re prioritizing speed and ease in your home sale, partnering with a cash buyer might be the ideal route. Ahead, we’ll break down the typical steps involved in selling your home for cash in Michigan.

Complete the Michigan Seller’s Disclosure Statement

In Michigan, sellers are required to complete the Seller’s Disclosure Statement. This document requires sellers to disclose any known defects and the condition of their property, ranging from structural issues to repairs and significant maintenance history. The goal is to provide transparency and protect both parties by reducing the chance of future disputes over undisclosed defects.

If you’re working with a we buy homes Michigan company, they typically handle the preparation of all necessary documents, including the disclosure statement. However, you can speed up the paperwork process by completing this document ahead of time. These cash-for-homes companies perform their own assessments and purchase properties in any condition, viewing the disclosure as more of a formal requirement than a potential dealbreaker when the seller is selling a house as is.

The buyer runs a title search on the property

The cash buyer will conduct a title search to ensure that you are the rightful owner of the property and to uncover any liens, claims, or issues such as boundary disputes or undisclosed heirs that could complicate the sale. This step is essential to ensure there are no legal issues that could disrupt the transaction, protecting both the buyer’s investment and the seller’s legal rights.

The seller pays any associated fees

While a cash sale typically results in fewer closing costs than a conventional sale, there are still some expenses that Michigan sellers must cover. These can include transfer taxes, title insurance, escrow fees, and attorney fees.

The state-level tranfer tax is levied at a rate of $3.75 for every $500 (or a portion of $500) of the home’s sale price. Meantime, the county tax (which applies to all Michigan counties equally) amounts to $0.55 per $500.

If you’re looking to avoid closing costs altogether, “We Buy Houses” companies will often cover them in full in exchange for a purchase price that’s below market value.

Deciding to sell to Michigan cash home buyers

Michigan continues to be an attractive state for real estate investments, offering homeowners a strong likelihood of securing cash sales. Whether you choose to vet cash buyers yourself, work with a local real estate agent, or seek a quick offer through Simple Sale, HomeLight is here to help. We can simplify your home sale process by connecting you with qualified professionals and valuable resources, making it easier to find the right buyer.

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