It is quite beneficial to sell a house on cash in Michigan. It is a well-known fact that selling a house on cash speeds up the transaction process, gives seller more bargaining and buying power and provides immediate available fairness. But if it is done carelessly it can turn into a nightmare.
There is a definite set of rules and regulations that is introduced to help both sellers and buyers thus making the whole process of transaction smooth and reliable. Let’s take a look on the steps involved:
Steps Involved in the Process of Buying a House for Cash in Michigan
Step 1: Preparing a Purchase and Sale Agreement
This document contains the information about all the terms of sale and purchase.
It contains all the information about date of agreement, purchase price, property description, who will pay closing costs as well as all the other related information. This agreement is usually made as a long and complicated document but it can be turned into a small and precise document that will contain all the information thus would be easy to understand.
Make sure to have the document available before you start the work.
Step 2: Conduct a Title Research
After getting your hands on the agreement you need to do the title research if you know well about the area or hire someone who can help you with this process.
In both the cases your purpose should be to make sure that the title is clear. This step is important as in this it is made sure that the property only belongs to the owner, have no liens against it and no one holds the rights over it.
Don’t neglect this step as it can lead to so many other issues.
Step 3: Determining the Kind of Deed
An official document that transfers ownership and clearly states who is the owner of a certain property is called deed.
Quit claim, warranty and special warranty are the few types of deed but warranty deed is more preferable. A quit claim is considered as a fastest way to get the property but it doesn’t make sure whether the title is clear or not. In order to simplify quit claim, it can be said that the owner is simply quitting his/her claim to the property.
Whereas by using warranty deed it is made sure that the title is clear and free to use by others. After knowing the difference, it is you who will decide whether you want title free property or wants to adopt the fast route.
Steps in Making the Transaction
Follow the steps outlined below.
Step 1: Make an Offer
After going through all the initial steps, there comes a point where you have to make an offer.
With cash in hand, you will have more bargaining powers and you will be considered as more potential, trustworthy buyer. The deal you will be making would not depend upon the entities giving loan and you will be free to make your own offer.
Step 2: Conduct an Inspection/Appraisal
Conductance of inspection and appraisal must be done after the offer is finalized/accepted.
Appraisal will provide some peace of mind as you will be sure about the fact that you are not paying for a property more than it is worth. Inspection is important as it can reveal the current condition of the house and you will be able to know whether a property needs more repairs or not.
It will also help you in setting the price of a property.
Step 3: Close the Deal
After all the inspection and appraisal is done and the agreement is finalized from both the parties.
There comes a time when you have to sign the papers and it is easier to do because no lender will be involved. You will have more authority in your hands. You can set the closing date that would be earlier and more suitable for you.
After all this you just have to show up with a pen and check to complete the process.