Selling your Home In Michigan

Michigan is an attractive place to live in because of its proximity to lakes and the presence of several national parks. It has the longest freshwater shoreline in the U.S. which accommodate the most number of recreational boats. The state’s real estate status is also on the upswing.

Latest reports from the real estate industry say that home sellers now are greater in number compared to buyers. And if sellers had a bigger say in the transactions in the previous years, it’s a so-called buyer’s market these days. In this case, home sellers have to make adjustments.

It’s a standard procedure today to prepare your home before selling it in the market. If needed, you have to paint your house, clean the interior and your yards and repair the defects prior to putting it up for sale. It’s a must to make a good first impression to your prospective buyers who may be meticulous to the condition of the home they would like to buy.

Don’t expect too much that buyers will flock to your house right away. Although home prices may have gone down, purchasing a real estate is still expensive for many buyers. If you are really decided on selling your home, experts advise that instead of lowering your selling price, offer to shoulder the closing costs to lower the buyer’s cash outlay.

Real Estate Contract issues

In Michigan, the contract or written offer to buy your home is also called a sales and purchase agreement, contract for purchase, agreement to sell, sales agreement or purchase agreement. This document stipulates the terms and condition for the transfer of property, disclosures, easements, liens on property and rights for inspection.

A contract between a seller and a buyer does not always immediately meet the needs of both parties. That is why there are contingencies. In most cases, if the buyer has no contingencies, the seller usually puts some of his or her own. A seller’s contingencies won’t cost the buyer additional money whereas if the buyer puts contingencies, the seller may be at a disadvantage such as if his home will be required to undergo home inspection.

Home inspection tops the list of contingencies in contracts these days. To avoid worries on this aspect, it is best, therefore, that the seller take the first steps in fixing the defects of his home. If you have an old heater or air conditioner, for instance, have them checked and repaired and be sure that your electrical system is in good working condition as well.

In selling your home by yourself, keep all the necessary permits and reports from professional inspectors to show potential buyers that you did your job. Don’t wait for other people to know your home’s defects. It’s praiseworthy for a seller to fix everything before putting the home for sale. Also, be open for contingencies and negotiate well to make the contract work for the best of both parties.

Costs involved

Real estate transactions in Michigan involve the payment of liens on a certain property. These are the construction liens, tax liens, mechanics’ lien, unpaid federal and state tax liens and unpaid child support.

In closing the contract, the home seller may need to pay for the closing costs. These may cover the remaining balance on a loan especially if the house had not been fully paid, transfer taxes, documentary stamps on the deed of sale, title insurance property taxes and home inspection. Legal fees may also be included which is usually between 2 and 4 percent of the home’s sale price. If in case you have made advanced escrow payments on your homeowners’ insurance, you may also get a refund. Consult a lender should you have questions on these matters.

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