Here’s a wake-up call for home sellers: There is no security in a traditional home sale. In fact, the only time you can feel sure that your home is going to sell is when you finally sign the paperwork and all parties get up and walk away on closing day. In the meantime, a traditional home sale typically means that you wait. What does that mean?
It can take months to do repairs, hire a real estate agent, list the house, stage the house, find a buyer, negotiate the sale price, and close the sale. The entire process can last 90 to 180 days – and that’s assuming that you have no problems or delays in the selling process. Below are some common pitfalls to a traditional home sale and how to get around them.
Pitfall #1: Your House Needs Major Repairs
There is no such thing as a perfect house. Every property has some type of flaw that ‘gives it character’. But what happens when you find out that your house has a major problem that costs thousands of dollars. In most cases, the average buyer will not even look at the house until you’ve made those repairs. Some of the most expensive home repairs include
- Foundational issues (cracks or leaks)
- Systemic problems (electrical or plumbing)
- Structural damage such as the framework
- Full roof replacement
- Window replacements
- Damage caused by fire or natural disaster
You will have to make repairs before you sell your house. As such, the cost of doing so will have to come out of your pocket.
Pitfall #2: The Buyer Does Not Qualify for a Home Loan
A buyer may come to you and tell you that they are pre-qualified for a loan or that they should have no problems getting a loan. However, what they say means nothing until they are actually approved for a loan and they sign on the dotted line.
Currently, less than 40 percent of home loan applicants are approved for a standard 30-year mortgage loan. Many applicants that are approved must meet certain criteria or conditions before the loan is actually processed, and they can move forward with purchasing the house.
Also, keep in mind that it takes roughly 30 days to get approved for a home loan. So, if you are approached by a buyer and they are ‘in the process of getting a loan’, just know that could mean any number of things, including that they may not get the loan.
Pitfall 3: The Buyer Pulls Out of the Deal
Nearly five to ten percent of all real estate deals fall through. In nearly every case, it’s the buyer that pulls out of the deal. When this happens, it can leave you in a tight spot. For instance, let’s say that you are trying to avoid bankruptcy or foreclosure and need to sell your house fast in Detroit, Michigan. If you find a buyer, but they pull out of the deal, it can leave you in a financial crisis.
Why does a buyer back out of a real estate deal?
- A last-minute inspection reveals a problem with the house.
- There are problems with financing the loan.
- You and the buyer may not agree on certain terms of the sale.
- The buyer found a better deal with another seller.
To be clear, there can be consequences of terminating a real estate transaction. However, the consequences against the buyer are nothing compared to the harm that it can do you if they pull out of the deal.
How to Avoid a Traditional Home Sale
Fortunately, a traditional home sale is not the only way to sell a house in Michigan. In fact, more homeowners today are turning to alternatives to a traditional sale to save time and money. If you need to sell your house fast in Detroit but can’t find a buyer or a buyer backed out of the deal, you can sell your house as-is for cash to a company that buys houses in Michigan.
A cash sale gives you the flexibility you need to sell your house without hiring a realtor, making repairs, or relying on buyers that may or may not be pre-qualified. You can sell your house when you want – most transactions are completed within seven to 21 days. Best of all, you work with pre-qualified professional buyers that you can depend on.
Contact M1 Home Buyers to Get a Fast Cash Offer Today
If you need to sell your house fast, contact M1 Home Buyers. We buy houses as-is in Michigan. Call 248-397-5800 to get a fast cash offer.