Michigan home prices are up, but not all properties are selling quickly. Southeast Michigan has experienced a sizzling summer for home sales. However, as with other pockets of the country, not all homes as selling swiftly.
Why is that? How can you sell your home faster? Should you consider offering seller financing?
Quick Michigan Real Estate Stats
According to a local RE/MAX agent:
- Macomb County home prices rose 9% in June
- Macomb County home inventory for sale has fallen almost 50%
- Oakland County home prices are up by over 10%
- Oakland County home inventory is down 32%
- Average days on market is just 24-26 days
The Listing & Sales Issue
Home prices are up, and many are selling fast. However, not all sellers are getting the results they expect. Some have had their homes listed for sale for months, or even over a year. They may have had some showings, but few bites.
There are two main reasons behind this. The first is that many owners are listing very high. Often, they don’t really understand the value and perspective of buyers. They may have talked to a hungry real estate agent, or quickly checked out neighboring home sales on Zillow. Yet, they can be way off when pricing their own homes. The most eager and qualified buyers check new listings as soon as they come online. If a house is overpriced, it gets ignored, and quickly gets buried by dozens and hundreds of other properties. The longer it sits, the less desirable and valuable it appears.
Many prices are up so high that they simply don’t make sense to real estate investors. The group which is the most qualified and active in buying. First time home buyers and repeat buyers are generally being far more cautious today too. More prefer to rent. If they consider buying, they are more focused on sustainable payments. Most don’t want to deal with scandalous banks, or deal with the stress of underwriting and hoping the mortgage comes through. That fear is more powerful than the perceived benefit and joy of owning a home.
Long listing times can be costly and derail your plans, or just leaves you in limbo.
One solution is accepting offers of land contracts, seller financing, and rent-to-own arrangements. It does have risks as detailed in this piece by The Oakland Press. Yet, there are many benefits too. That can include tax benefits, ongoing income, great returns, confidence in the asset your money is collateralized by, and helping others. You’ll typically sell a lot faster, and for more money on one of these arrangements.
If you are thinking of selling your MI home - price it right. Consider seller, or partial seller financing, but consult expert real estate attorneys, and a local MI title company for help in drafting the right legal paperwork to protect you.