Want to Sell Your Farmington Hills MI House Fast? You Have Options
Selling a house can often be a lengthy and stressful process. There’s the prepping, cleaning, and staging, making necessary repairs – and once you list your home, you will need to keep it ready to show at a moment’s notice in case a potential buyer wants to take a look.
Now, throw in the fact that you need to sell your Farmington Hills MI house fast because of financial hardship, a new job, a divorce, or some other unexpected life upheaval. Selling a home under the gun ups the pressure significantly.
However, making a rash decision could leave you kicking yourself over it down the road. First, you need to know all of your options so you can make an informed decision that best aligns with your current circumstances and goals.
The National Association of Realtors (NAR) says that on average it takes just under a month to get a home under contract once you list it. According to mortgage data firm Ellie Mae, it takes around 46 days to close a home purchase mortgage once the seller accepts an offer.
That means if you are the average seller, you will probably have your money in hand in eight to ten weeks if everything goes smoothly and according to plan. But what if that’s not fast enough?
Fortunately, there are traditional and non-traditional ways to speed up the home-selling process and get your money faster such as:
- Sell to an all-cash buyer/investor
- Sell with an auction house
- Sell to an iBuyer
- Sell with a top real estate agent
Let’s take a closer look at the above options for selling your Farmington Hills MI house fast so you can look back on the experience with no regrets:
Sell your house to an all-cash buyer/investor
You can close an all-cash deal with no mortgage in less than two weeks. However, speed does come at a premium as most cash buyers are investors looking to resell the property and need a substantial discount from the fair market value (30% to 50%) for the deal to make sense. The buyer usually waives the right to contingencies, inspections, walk-throughs, appraisals, repairs, and title insurance.
Investors buying homes for cash and then selling them for a profit are actually on the rise. The National Association of Realtors (NAR) reports that investors accounted for 15% of home sales in July 2020, an increase from 11% the year prior.
As a group, cash buyers or house buying companies are individuals or entities that buy your property outright without the need for lender financing. Although selling your home to a cash buyer/investor allows you to skip the home prep, showings, and staging hassles, you’ll want to consider both the pros and cons of selling to an investor:
The pros of selling your house to an all-cash buyer/Investor:
- Selling as-is: You can sell your home as-is without having to do any repairs or upgrades. Since the investor isn’t planning on living in the home, he/she (or the company), doesn’t care whether your kitchen has been updated in the last 10 years or if your toilets are the original ones that came with the house when you purchased it 20 years ago. Many investors look for old or outdated homes to fix up themselves to flip and make a profit. As the seller, you save money by not making repairs or upgrades. You also save time and have the convenience of not having to make repairs or upgrades yourself.
- All-cash offers: – Most investors pay for homes in all-cash so there’s very little risk that you won’t close for lack of funds. Even when a traditional buyer has been preapproved for a loan, the lender can decide the buyer’s creditworthiness has changed and refuse to issue the funds needed to buy your home. However, before you sign a purchase agreement you should ask the investor for proof of funds, which can come in the form of bank or money market account statements that show cash or liquid assets that exceed the purchase price of your home.
- Fast closings: Because the sale of the property is not reliant on approved financing, appraised values, home inspections, etc., bypassing all of these steps expedites the process considerably. Since most investors purchase with all cash, you can sell your property as soon as both parties agree on the conditions of sale. The average time it takes sellers to close with an all-cash investor is about two weeks, sometimes sooner. If you’re selling to a buyer who needs a mortgage, it takes a minimum of 60 days.
The cons of selling your house to an all-cash buyer/investor:
- Investors don’t need a license to buy: As the home seller, you know nothing about the individual or entity offering to buy your home. Some investors are corporations, while others are individuals who just happen to also be real estate agents. This is cause for concern for many home sellers because they question the motive behind the purchase. Do they want to buy my home to resell it for more? Probably.
- Scam artists can pose as Investors: There’s a risk of fraud in any financial transaction, but it’s especially critical to avoid scams when dealing with the largest asset such as your home. To avoid any issues, get the name of the investor and do research online to see who they are, ask for references, look them up with the BBB, and ask your Farmington Hills MI REALTOR® to also do some sleuthing on your behalf.
- Cash-buyer is a legitimate foreign investor: If the cash buyer is a legitimate foreign investor, it could take much longer to close than with a domestic buyer who needs a mortgage. Investors who are not U.S. citizens could suffer negative tax consequences in their home countries by purchasing your home. Thus, the sale could be delayed for months while the investor works out the logistics of closing.
- Your home will likely sell below market value: Investors have their own costs to contend with and those costs will be factored into their offer price. Investors buy a property because they believe they can make more when they sell it than they paid for it. For the most part, investors buy homes as-is, not market-ready homes.
Investors are aware of the appeal and power of an all-cash offer and the fact that they are taking a risk by purchasing “as-is.” They may be relying on your motivation to get out quickly. Whatever the reason, it’s unlikely that an investor will pay market value for a home.
Sell your home with an auction house
Another way to sell your house fast is with an auction house. According to NAR, selling a home at auction has a few benefits but there are also disadvantages to consider.
The pros of selling your home with an auction house:
- Buyers come prepared to buy
- Quick disposal reduces long-term carrying costs, including taxes & maintenance
- Exposes the property to a large number of pre-qualified prospects
- Accelerates the sale
- Creates competition among buyers—auction price can exceed the price of a negotiated sale
- Requires potential buyers to pre-qualify for financing
- The seller knows exactly when the property will sell
- Eliminates numerous and unscheduled showings
- Ensures an aggressive marketing program that increases interest and visibility
The cons of selling your home with an auction house:
- Many prospective buyers believe (incorrectly) that auction properties are distress sales and expect to pay less than the market price
- Auction costs are higher (often, much higher) than real estate commissions
- If the property doesn’t sell, you still owe substantial fees to the auction house
- In an auction without a reserve price, you may get less than you wanted or expected, but you will have to take it
When you sell your house through a real estate auction house, you will have to pay extra costs associated with working with an auction company. The real estate auction house will handle the marketing of your property’s auction, decide when best to hold the event and where to hold it, decide whether you should hold an auction in which the highest bid automatically wins your property (auction without a reserve), or one in which you have the right to refuse the largest bid if it’s not high enough.
The most successful real estate auctions tend to be those in which sellers agree to accept the highest offer, even if they’re not happy with it because these auctions attract the most bidders. Real estate investors don’t want to waste their time bidding on a house only to have the seller back out of selling it at the last minute.
It can be risky selling real estate this way because you may end up selling your Farmington Hills MI house at a price that you believe is too low. Sellers must weigh this risk against the advantages.
Sell your house to an iBuyer
The term iBuyer means “instant” buyer. An iBuyer is a specific type of cash buyer – an organization that uses an automated valuation model (AVM) to analyze your property and set the price it is willing to pay. There are no real estate agent commissions and you can avoid the hassle of listing your home and the uncertainty of when the sale will close.
In general, iBuyers offer a higher percentage of fair market value than investors/home flippers. But, according to a MarketWatch study, you’ll end up with about 11% less by selling your house to an iBuyer than if you sold it on the open market with a top real estate agent. There are both advantages and disadvantages to consider with an iBuyer:
The pros to selling your house to an iBuyer:
- Speed: One of the biggest advantages of using an iBuyer, is a speedy selling process that doesn’t require waiting on the interest of a potential buyer.
- Efficiency: Using an iBuyer means selling your home with ease. Since iBuyer takes on the typical responsibilities that selling a house requires, using their services can promise a simpler selling process of all the other options.
- All-Cash offers: When working with an iBuyer, the offer generated for your home is an all-cash offer, which is typically provided to a homeowner within 24 hours.
- Inspection: When using an iBuyer, you are not required to have an inspection of your home done. Any repair that needs to be done will be taken care of by the iBuyer.
- Showings: Some people don’t want to deal with the hassle of having people in and out of their homes for showings. The iBuyer will take care of dealing with potential buyers, so you don’t have to.
- Certainty: If an iBuyer approves your home, it’s then guaranteed that your home will sell one way or another. Since homes are bought by the iBuyer, it then becomes the iBuyers responsibility to sell.
The cons of selling your house to an iBuyer
- Lower offers: Because iBuyers take a significant risk in paying quickly and closing fast when purchasing a home, the offer provided can be less than what the home may be worth on the open market. This is the payoff of selling a home fast and seamlessly to an iBuyer. When using a top Farmington Hills MI REALTOR, there is a greater chance of receiving more money for your home, but without the convenience.
- Deductions: After an inspection, if a homeowner chooses to have the iBuyers take care of the repairs, there is a deduction added to the final offer of the home that includes the payments required to do so. If the repairs are rather significant or extensive, this can lead to a much lower cash offer for the home.
- Real estate agent: There are instances where a top Farmington Hills MI REALTOR® can provide the same amount of efficiency in a similar amount of time. If you feel more comfortable using a real estate agent, you can typically receive some of the same benefits that an iBuyer can offer.
- Availability: Some iBuyers only perform in specific locations, cities, or states. If you are considering to us an iBuyer, you will need to make sure be reputable companies are operating within the area you live.
- No negotiation: When using an iBuyer, you can not negotiate the offer given to you for your home. But, with selling your home with a REALTOR®, part of closing a sale is the conversation about the final price of the home. Often, a buyer will seek out a lower price and the agent will direct the conversation to help the buyer and seller agree. When using an iBuyer, asking for a higher purchase price is non-negotiable.
- Representation: Many people don’t feel confident when it comes to selling their home on their own, and prefer to use an actual Farmington Hills MI real estate expert. With an iBuyer, there is no representation for you or the person buying your home. As the seller, you will not be represented by an expert and will have to go through the selling process on your own with the iBuyer.
- Uncertainty: iBuyers can be selective when determining which homes they want to purchase and have the option to deny buying your home. While you are in the clear if an iBuyer has confirmed to buy your home, for those that don’t qualify, using an iBuyer won’t be an option.
- Non-interactive: Using an iBuyer means there will be no face-to-face interaction. Some people would prefer to speak to an actual person in regards to their home rather than going through a website. Working with a real estate agent can help make some homeowners feel more confident their home is being considered in the most personal manner.
Ultimately, with iBuying, you’re typically selling your home at a discount and what you are getting in return are speed and certainty.
Sell your home with a top real estate agent
Selling with a top Farmington Hills REALTOR® can get you a fair market price or better. Putting the sale of your home in the hands of a skilled real estate professional can get you the speedy transaction you need at a price you can accept.
Specifically, the job of an agent is to guide the seller through necessary house preparations and repairs, price the home correctly, set up home staging, execute a marketing plan to promote the listing, negotiate with the buyer, and take the deal through to the final closing paperwork.
These efforts bring serious buyers to the table as efficiently as possible to fetch an offer for your house at fair market value. Homes represented by agents generally sell for more money and sell for a median of 99% of the final listing price. Having an agent of your own also means having an advocate on your side who can handle delays and prevent mistakes.
Not only will an experienced and skilled Farmington Hills MI REATOR® help you avoid time-wasting missteps during escrow, but they can also help you choose which offer to accept to guarantee a smooth and fast transaction. If you’re on a tight deadline, it is reasonable to be concerned about whether a real estate agent will work at a fast enough pace.
That means not any agent will do. You need to partner up with an agent who has a track record of selling homes just like yours quickly in your area.
Sell your house fast with top Farmington Hills MI REALTOR® – Tom Gilliam
Tom Gilliam has been serving Farmington Hills and the surrounding area for over two decades, with a commitment to his clients and a passion for real estate. Known for his friendly and down-to-earth demeanor, Tom’s personal approach to the real estate process allows him to connect with his clients. He will quickly ascertain your needs and wants and create a plan of action based on your specific criteria.
Tom is someone you can trust and feel good about working with. His clients appreciate his honesty and transparency and feel it helps them as they make important real estate decisions. An excellent communicator, Tom makes himself available for his clients whenever they have questions or concerns and will promptly return any texts, calls, or emails.
Having someone like Tom to advise and guide you means there is one less thing you need to worry about. A trusted Farmington Hills MI REALTORⓇ, Tom will protect your interests, advocate for you, negotiate on your behalf, and go the distance to ensure the best results possible.
If you are ready to sell your Farmington Hills MI home fast, please give Tom Gilliam a call directly at (248) 790-5594 or send him an email.
Tom Gilliam, REALTOR®
29630 Orchard Lake Rd.
Farmington Hills 48334