By: Mike Aziz
A distressed house is a property in a state of disrepair, often due to the owner’s financial difficulties or neglect. Distressed properties can range from homes that are in need of minor repairs to those that are in serious disrepair and may be unsafe to occupy.
Some common examples of distressed properties in Detroit include foreclosed homes, short sale properties, and abandoned homes. These properties are often sold at a discounted price, as they may require significant repairs or renovations to bring them back to a livable condition.
Types of Distressed Houses
There are several types of distressed houses, including:
- Foreclosed homes – seized by the lender due to the owner’s inability to make mortgage payments.
- Short sale properties – sold for less than the amount owed on the mortgage.
- Abandoned homes – left unoccupied by the owner for an extended period of time.
- Pre-foreclosure properties – in the process of being foreclosed but has not yet been seized by the lender.
- Fire-damaged homes – damaged by fire and may require significant repairs.
- Flood-damaged homes – damaged by flooding and may require significant repairs.
- Homes with code violations – cited for building code violations and may require costly repairs to bring it into compliance.
Is it Legal to Sell a Distressed House in Michigan?
Yes, it is legal to sell a distressed house. However, the sale of a distressed property is subject to state and federal laws and regulations, including building codes, zoning laws, and consumer protection laws.
For example, you need to disclose any known defects or issues with the property, such as building code violations or flood damage, to potential buyers. You must also comply with state and federal disclosure requirements, such as the lead-based paint disclosure requirements for properties built before 1978.
What is the Best Way to Sell a Distressed House in Detroit?
A cash home sale can be a good option for selling a distressed house, as it offers several benefits. Cash home sales often close much faster than traditional sales, as there is no need to wait for mortgage approval or appraisal. It can be especially beneficial for owners of distressed properties, who may not have the resources or patience to wait for a long and drawn-out sales process. Other benefits include
- Close the sale in as little as one to three weeks.
- Make no home repairs or upgrades.
- Skip the realtor and work directly with the buyer.
- Sell your house as-is for any reason.
- Avoid bankruptcy or foreclosure with a cash home sale.
A cash sale eliminates the risk of the sale falling through due to financing issues or appraisal problems. This provides the seller with a greater degree of certainty that the sale will close as agreed. Cash buyers often purchase properties as-is, without requiring the seller to make any repairs or renovations.
How Does a Cash Home Sale Work?
Determine the Value of the Property
The first step in a cash home sale is to determine the value of the property. This can be done by researching similar properties in the area, getting an appraisal, or working with a real estate agent.
Find a Home Buyer
Next, you will need to find a cash buyer. This can be done by working with a real estate agent, advertising the property for sale, or contacting cash home buying companies.
Negotiate the Sale
Once you have found a cash buyer, you will need to negotiate the sale. This includes determining the price, the terms of the sale, and any contingencies or conditions that must be met.
Sign the Paperwork
Before the sale can be completed, you will need to prepare the necessary paperwork, including the sales contract, deed, and other necessary documents.
Close the sale
The final step in a cash home sale is to close the sale. This involves signing the necessary documents, transferring the property title, and transferring the funds from the buyer to the seller.
Sell You Distressed House As-Is for Cash in Detroit, Michigan
A distressed house can be a financial burden for you and your family. If you need to sell your property but can’t find a buyer or don’t have the money for repairs, we can help. M1 Home Buyers can buy your house as-is and pay cash. We close on most sales in as little as seven days. Call 248-397-5800 to get a fast cash offer on your house within 24 hours.