Are you planning on selling your house in the Great Lakes State? Then you need to know the latest trends in the Michigan real estate market. In March 2023, selling a house in Michigan has become even more profitable, with home prices rising by 2.3% compared to last year, bringing the median price up to $227,500.
However, there’s also a downturn in the number of homes sold, with a decrease of 8.9% year over year, resulting in 9,012 homes sold this March, compared to 9,885 homes sold in March of last year. Despite this, Michigan’s housing market remains stable.
As “The Wolverine State” continues to attract buyers, selling a house in Michigan can be a lucrative opportunity for homeowners. Stay tuned to this blog to learn more about the ins and outs of selling a house in Michigan, and get ready to maximize your profits!
📉 Michigan Housing Market Update
- Median Home Sale Price Drop YoY: The median home sale price dropped to $364,366, down by 2.3% YoY, the biggest decline in more than a decade.
- Fewer Buyers are Applying for Mortgages: Mortgage purchase applications were down by 31% YoY. Due to expensive financing, fewer buyers are applying for mortgages.
- iBuyers are No More a Viable Option: Several iBuyers have either shut down or are suffering massive losses. As per our research, most iBuyers are not offering more than 70% of a property’s Fair Market Value.
- Bottom Line: In 2023, more sellers in the Wolverine State are opting to sell their homes by owner. By listing on the MLS with the best FSBO sites in Michigan, your Michigan home gets maximum exposure, and you save thousands of dollars in commissions.
Step 1: Determine How You Want to Sell Your House in Michigan
How you choose to sell will determine all other aspects of selling your Michigan home. These include the cost of selling a house in Michigan, marketing strategy, the level of preparation you need, etc.
Home sellers in the Wolverine State are no longer required to work with only 3% commission realtors to list and sell their houses. You have options now – MLS listing services, discount brokers, FSBO sites, etc. – who work at lower rates. Weigh the pros and cons of each option before you choose one.
- Sell With a Discount Broker: A Michigan discount real estate broker offers all the services similar to a traditional broker at discounted rates. Discount brokers in Michigan charge a 1.5%-2% commission or a $3,000-$5,000 flat rate. They will help you with everything, from listing to closing, and offer decent savings.
- Sell Your Property For Sale By Owner: You can sell your home without a Realtor, independently. You will save the entire 3% listing commission but won’t get MLS access. You can list your Michigan home on For Sale By Owner websites. The best FSBO sites leverage technology to get you listed and connect you with potential buyers directly.
- Sell With a Traditional Realtor: We do not recommend working with a traditional Realtor. They charge a 5%-6% commission and control most aspects of the transaction. However, if you need guidance at every step, work with Michigan Realtors in your area who have expertise in the Michigan housing market.
- Offer Your Home to a Cash Buyer: You can sell your home “as is” in Michigan to a cash buyer. Michigan cash home buyers offer 30% to 50% of the Fair Market Value and offer flexible closing timelines.
Step 2: Set a Realistic Listing Price
The listing or the asking price is the most important factor for a successful home sale. Typically, the Michigan real estate broker will run comps and help you arrive at an asking price. However, in an FSBO sale, you can use online tools like Zestimate to determine the asking price for your Michigan home.
Do not overprice your home. If you do, your home will spend more days on the market, and buyers may make negative assumptions about it.
On the other hand, underpricing can be a good strategy. Remember, the listing price is not equal to the sale price. The purpose of the listing price is to attract buyers for your home.
You can set the asking price at the lowest price acceptable to you. You might get multiple offers which may lead to a bidding war among buyers. Bidding wars can help you sell at a price higher than what you had in mind. Refer to this informative guide on how to price your home for sale for more such strategies.
Step 3: Market Your Home
A good marketing strategy will help you attract more potential buyers. You can work with a broker to market your home or do it yourself. Here are a few marketing tips that can increase your home sale value substantially:
- Stage Your Home: You can sell your home for up to $40,000 more by staging it. You can either DIY it or work with local Michigan home staging companies. They will rearrange the interiors of your house to make it look spacious and presentable.
- Hire a Real Estate Photographer: With professional real estate photography, you could sell your home in Michigan 32% faster. Professionally clicked pictures will make your property listing pop. It will also help you to market your home to 90% of buyers who search for properties online. Check out the top real estate photographers in Michigan.
- List on MLS: With an MLS listing, you can sell faster and for up to 17% more. Your property listing will also get syndicated to 100+ real estate websites. But, only licensed real estate agents in Michigan have access to the MLS. They charge a 3% commission which can burn a hole in your pocket. You can list your house on MLS in Michigan with Michigan Flat Fee MLS companies. Houzeo will get you listed for $379, and that too within 48 hours.
- List on Free FSBO Websites: Several FSBO sites allow you to list your home on their website for free. Your Michigan property can attract buyer traffic that visits a particular FSBO website. Some examples of free FSBO listing websites in Michigan include Craigslist, Zillow, ForSaleByOwner.com, etc. However, you may attract unverified buyers or scammers as well.
- Post a Yard Sign: With a yard sign, you can attract unrepresented buyers and save the buyer agent commission. Ensure you get a yard sign with your phone number so that the buyers can contact you directly.
- Host Open Houses: In a hot market like Jacksonville or Miami, an open house can be a great way of showing your property to home buyers. Also, you can attract unrepresented buyers.
Step 4: Show Your Home to Potential Buyers
Showings are essential when selling a property in Michigan or anywhere. The more the number of buyers touring your home, the greater the chances of you getting an offer. But this doesn’t mean showings should be inconvenient for you. You can use an online showings management tool like Houzeo Showings.
Houzeo Showings allows you to schedule slots for buyers to tour your Michigan house. Home buyers can also request and reschedule or cancel showings.
Step 5: Negotiate Offers
Interested buyers will send written offers to your agent or directly to you, in case of an FSBO sale. In a seller’s market, buyers might make offers above the list price. But, experts predict 2023 to be a buyer’s market. So, be open to negotiations.
As a seller, you can accept, reject, or counter an offer. A counteroffer is a way of negotiating an offer for better terms or prices. It should be in written format and must have a set timeframe for the buyers to respond. In the counteroffer, you can offer seller concessions, repair credits, etc., in exchange for selling at the list price.
In case of multiple offers, weigh all of them across various merits and do not accept the highest bid right away. You may want to consider the following before accepting an offer amongst multiple offers:
- Mode of payment (cash vs financing)
- Home buyer’s mortgage approval status (pre-approval vs pre-qualified)
- Buyer’s willingness to cover the closing costs in Michigan or some part of it
- Buyer’s willingness to bypass some contingencies like a home appraisal, home inspection in Michigan, etc.
- Closing timeline
In a traditional home sale, a real estate professional will negotiate for you. However, as an FSBO seller in Michigan, you are on your own. In such a situation, you can use digital offer management tools like Houzeo Offers. With Houzeo Offers, you can counter an offer, call for the highest and the best offer, and more.
Step 6: Close the Sale
After the seller accepts an offer, the MLS listing status is changed to “house under contract“. You and the buyer have to complete a lot of tasks from contract to closing. Here are the key milestones in the closing process in Michigan:
Allow the Buyer to Complete the Due Diligence
After you accept an offer, your Michigan property goes off the market, and the buyer can perform the necessary due diligence. The buyer inspects their to-be-home to proceed with the purchase.
Post due diligence, the buyer works on securing a mortgage, known as the underwriting period. During this period, the lender verifies the buyer’s finances and inspects and appraises the property. An amount equivalent to the property’s appraised value is sanctioned to the buyer.
Pay the Closing Costs
- The escrow or the title fee
- Taxes on selling a house in Michigan such as the transfer tax, capital gains tax, etc.
- Outstanding HOA dues
- Real estate attorney fees
- Seller credits (if you have offered any).
» Michigan Seller Closing Costs Calculator: Estimate the exact cost to sell a house in Michigan.
Sign the Escrow and Title Documents
This is the final step in the process of selling a home in Michigan. Here, you sign the escrow and title documents needed to sell a house in Michigan. Additionally, you sign the deed and closing disclosure. Ensure you bring two valid ID proofs at the signing.
After the close of the escrow, the new homeowner’s details are registered in the public records. You receive a wire transfer or a check for the final home sale price, and the sale is complete.
The real estate market in Michigan presents both opportunities and challenges for homeowners looking to sell their houses. Despite a slight decrease in the number of homes sold, the median home price has risen, indicating a positive trend for sellers.
If you’re planning to sell your house in Michigan, timing is crucial. Keep an eye on market conditions and consider the best time to sell your house in Michigan to maximize your profits.
Whether it’s spring when buyers are active, or during a period of high demand, understanding the dynamics of the Michigan real estate market will help you make informed decisions and achieve success in selling your home.
Get on the MLS with a Flat Fee Realtor or a Flat Fee MLS company like Houzeo. With Houzeo, your home will be listed for $379 within 48 hours. Read Houzeo reviews to know what home sellers across Michigan say about Houzeo.
1. What are the current market conditions for selling a house in Michigan?
The current market conditions for selling a house in Michigan vary, but overall it is considered a seller's market with low inventory and high demand.
2. Are there any specific seller disclosures required when selling a house in Michigan?
Specific seller disclosures required in Michigan may include information about the property's condition, known defects, and any environmental hazards. Read this guide on Michigan real estate disclosures to know your disclosure obligations in Michigan.
3. What are the steps involved in selling a house in Michigan?
The steps involved in selling a house in Michigan typically include preparing the property, listing it on the market, negotiating offers, and closing the sale.
4. Do you have to pay taxes when you sell your house in Michigan?
Yes, you need to pay the federal capital gains tax, transfer tax, and property tax when selling a property in Michigan.