Selling a house in Detroit: steps, timeline and costs to expect

Selling in Detroit works a lot like selling anywhere else in Michigan, with a few local things that are worth checking before you list. Here's how it usually goes.

Sell as is, or fix it first?

This is the first decision, and there's no single right answer. It comes down to three questions:

• Will a lender approve the house as it sits? If the roof leaks, the furnace is out or there's no working kitchen, a lot of buyers using a mortgage won't be able to buy it. That limits you to cash buyers and investors, and their offers reflect it.
• Will the repair come back to you in the price? Fixing what stops a loan usually pays. Cosmetic projects often don't, especially if you're paying someone to do them.
• How much time and cash do you have? If you need to move soon, selling as is can be the better trade even at a lower price.

Selling as is means you won't make repairs. It doesn't change what you have to disclose. More on that in our post on the Michigan Seller Disclosure Statement.

A typical timeline

• Week 1: We walk through the house, look at recent sales nearby and settle on a price and a plan.
• Weeks 1 to 2: Cleanup, small repairs, photos and the disclosure paperwork.
• On the market: This depends on price, condition and the street. A well priced home in good shape can go under contract quickly. One that needs work can take longer.
• Under contract to closing: Usually 30 to 45 days with a mortgage, often faster with cash. Inspection, appraisal and title work all happen here.

For more on what speeds this up or slows it down, see how long it takes to sell a house in Metro Detroit.

What it costs to sell

• Commission. Negotiable, and spelled out in your listing agreement.
• Transfer tax. Michigan charges $3.75 per $500 of the sale price and Wayne County charges $0.55 per $500, which is 0.86% combined. The seller usually pays it.
• Owner's title policy. The seller usually pays for the buyer's owner's policy in Michigan.
• Prorated property taxes for the time you owned the home.
• Your mortgage payoff and any liens on the property.
• Final water bill, settled at closing.
• Repair credits, if you agree to any after the inspection.

Here's a fuller breakdown: how much it costs to sell a house in Michigan.

Detroit paperwork to check early

None of this is hard, but finding it late is what holds up closings. Before you list, it's worth checking:

• Property tax status. Make sure taxes are current. Older unpaid taxes in Detroit are handled by the Wayne County Treasurer, and they have to be paid at or before closing.
• Blight tickets. Unpaid tickets can turn up in the title search. It's easier to pay or contest them now than with a buyer waiting.
• Open permits. If work was done on the house, check that permits with the city's Buildings, Safety Engineering and Environmental Department were closed out.
• Rental status. If the home is rented, have the lease and the city rental certificate paperwork ready. A current lease usually stays in place after a sale, and buyers will want to see it.

How we price and market a Detroit home

Prices in Detroit can change a lot from one block to the next, so we start with recent sales close to your house and as similar as we can find, then adjust for condition and updates. From there it's good photos, a clear description, the MLS and the major home search sites, and quick follow up with every showing.

Want a starting number first? Our instant home value takes about a minute, and you can see recent Detroit sales too.