Thu. Aug 18th, 2022
6-of-the-top-we-buy-houses-for-cash-companies-in-detroit

Disclaimer: This post is meant to be used for educational purposes only and does not constitute legal or financial advice. Links and mentions of companies in this post do not constitute an endorsement. Individual program details can also frequently change — please visit a company’s website for the most up-to-date- information on each program’s fees, market coverage, business model, and more. HomeLight always recommends doing your own research to determine which selling option is best for your situation.

We Buy Houses companies in Detroit make all-cash offers for homes that often need some work, enabling sellers who lack the time, expertise, and money for repairs to move quickly and receive the cash proceeds from their home sooner if they need it.

You may be leaving because you accepted a great new job out of state but the company wants you to start right away. Or perhaps you are looking to sell an inherited property in the area fast. Or maybe you’re facing an escalating financial hardship and the cash from an immediate home sale is the best solution.

If you need to sell your Detroit home quickly, a We Buy Houses for Cash company could be the best solution. However, before you request a cash offer, it’s important to understand how much a Detroit house-buying company might offer for your home and weigh your options. Once you’re familiar with the process, you can opt to select a company on our list of some of the top contenders and get moving.

Get an All-Cash Offer on Your Detroit Home

No repairs, no staging, no open houses. HomeLight’s Simple Sale platform provides full cash offers for homes in almost any condition nationwide and in Detroit. Get an offer in as few as 48 hours and close in as little as 10 days.

Working with house-buying companies in Detroit

We Buy Houses companies in Detroit typically promise quick, all-cash offers and ultra-fast closings, often in as few as seven days. They tend to target distressed properties in need of repairs, and work with sellers who need to move ASAP.

Here’s how the process generally works:

  1. You request an offer and provide the company with some information about your home. Some companies may make a preliminary offer at this stage, but it’s usually subject to change once they’ve inspected your property.
  2. The company completes a walk-through of your property, usually within 24 to 48 hours.
  3. The company makes a firm offer (usually within 24 hours, sometimes on-site after the walk-through) which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
  4. If you accept the offer, you’ll both sign a contract and the closing process will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
  5. Closing and getting paid is quick, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

Popular We Buy Houses for Cash companies in Detroit

If these benefits of selling to a house-buying company in Detroit sound good to you, it’s time to find a legitimate operation you can trust.

We’ve compiled some of the top companies that will pay cash for your parent’s Queen Anne or bungalow. By selling to one of these companies, you should be able to sell your Detroit home in as little as a week or two.

We Buy Ugly Houses® / HomeVestors®

Website: webuyuglyhouses.com/detroit
Phone number: (313) 924-3603
Locations: Greater Detroit area and other markets nationally

We Buy Ugly Houses is a subsidiary of the parent company HomeVestors. HomeVestors was founded in 1996 and began franchising at that time, so this company is also one of the longer-standing house-buying companies in a crowded market. Its independently owned and operated offices have together purchased more than 110,000 houses since inception.

Unlike some competitors, We Buy Ugly Houses makes clear and firm cash offers to the sellers they work with. They are careful to visit properties before proposing an offer, and once doing so, the company does not subtract commissions or fees during the closing process. To avoid copycat companies, be sure to read up on what sets HomeVestors apart as a company.

Closing costs: Sellers pay no closing costs; We Buy Ugly Houses covers them.

Reviews: Reviews left with Google and the Detroit Chamber of Commerce indicate customers typically have positive experiences with the local office of this nationally-operative company. Sellers point to knowledgeable staff and fair offers, and reviewers on Google mention swift, worry-free transactions conducted from out-of-state. The company currently has a 4.4-star Google review rating.

Simple Sale (a HomeLight platform)

Contact information: homelight.com/simple
Phone: (844) 488-8455
Locations: Nationwide, including Detroit

Simple Sale, a solution from HomeLight, is an online platform where sellers in Detroit (and across the country) can request a cash offer for their home. Simple Sale has a network of cash buyers on its platform, and partner investors have a wide range of investment strategies, including fix-and-flip and buy-and-hold. This enables Simple Sale to provide cash offers for a wide array of properties, even those that need some or a lot of work, in different locations throughout Detroit. With Simple Sale, you can get an all-cash offer in as few as 48 hours and sell your home in as little as 10 days, skipping the months it can take to sell the traditional way.

Closing costs: No prep costs, no agent commissions, and no fees charged by HomeLight. Individual investor fees may vary.

Reviews: Simple Sale is a HomeLight platform. HomeLight is BBB accredited with a customer review rating of 4.57 stars out of 5, and has 4.6 stars on Google based on 490 user reviews. Below you can hear about how Baohan Wu, a seller who used Simple Sale to sell his high-rise apartment, closed within three and a half weeks and what he thought of the process overall.



Waymark Homes

Website: waymarkhomes.com
Phone number: (248) 886-6513
Locations: Offices in Troy, Michigan, serving markets across Michigan

Unlike many property investment companies that require an on-site walkthrough, Waymark Homes gives free over-the-phone offers for sellers who may not be able to make it to a consultation in person. For those who can, this company has a track record of meeting with prospective sellers quickly – sometimes even on the same day as initial contact. They also are equipped to make an offer quickly, sometimes as swiftly as during the initial site visit.

Supported by a robust administrative staff, this company strives to serve customers responsively. Waymark Homes averages 10-15 closings per month, and has been established in the Detroit market for eight years.

Closing costs: Sellers pay no closing costs; Waymark Homes covers them.

Reviews: Waymark Homes has been BBB accredited since 2015, where it holds an A+ rating. Customer reviews for Waymark Homes filed with the BBB mention the company’s patient, professional, and trustworthy staff. Many Google reviews mention staff members by name, citing their professionalism and transaction speed as major reasons for appreciating the company.

Metro Detroit Homebuyer

Website: metrodetroithomebuyer.co
Phone number: (313) 246-4551
Locations: Offices in Franklin, Michigan, serving the Detroit metropolitan area

Owner Dennis Fassett has been in real estate since 2004; he and two other co-owners of Metro Detroit Homebuyer have completed a combined 3,000 real estate transactions. This longtime investment in the Detroit housing market brings a wealth of experience and local market knowledge to the business.

Closing costs: Sellers pay no closing costs; Metro Detroit Homebuyer covers them.

Reviews: Metro Detroit Homebuyer has been BBB accredited since 2018, where it holds an A+ rating. Google reviews mention owner Dennis by name, citing his professional, honest, and straightforward approach. Customers express appreciation for the opportunity to transact directly with a seasoned professional who has a track record for timely closings.

Chris Buys Homes in Detroit

Website: chrisbuyshomesdetroit.com
Phone number: (313) 217-9851
Locations: Detroit, Michigan

This locally owned and operated small business positions itself as being able to pay higher than competing companies in the area, thanks to relationships with Detroit contractors. The company identifies an empathetic and humble approach in its core values, which can be especially valuable to sellers who face difficult circumstances.

Closing costs: Sellers pay no closing costs; Chris Buys Homes in Detroit covers them.

Reviews: Chris Buys Houses in Detroit has been BBB accredited since spring of 2022 and in business since 2016. Customer reviews on Google are consistently five stars, pointing to smooth transactions. Other “Chris Buys Homes In” businesses office in neighboring markets regionally, including St. Louis and Kansas City, backed by the same investment firm.

3D Property Solutions (Also Known as Quick Key Real Estate, LLC)

Website: dddhomebuyers.com
Phone number: (248) 949-1224
Locations: Detroit, Michigan, and surrounding area

Owned and operated by two local real estate investors, 3D Property Solutions works with clients in the Detroit metropolitan area who face a variety of challenges. From transactions involving divorce or death to distressed houses with repair issues, this company’s website promises understanding and transparency throughout each transaction.

Closing costs: Sellers pay no closing costs; 3D Property Solutions covers them.

Reviews: 3D Property Solutions operates under the LLC Quick Key Real Estate, which has been BBB accredited since 2018. Customer reviews with the BBB for 3D Property Solutions speak to kind, professional staff. Google and Facebook reviews mention a company that is helpful and professional, and how the business has earned trust through its transactions.

Why sell for cash in Detroit?

There are plenty of reasons a Detroit seller may choose to go the Cash-For-Homes route, speed and certainty being chief among them.

In Detroit, it typically takes around 78 days to sell a home on the market using an agent. That includes an average of 24 days on market, plus the typical 54 days a buyer needs to close on a purchase loan.

Compare that to the typical seven days promised by many We Buy Houses for Cash companies in Detroit, and you can see why these companies remain popular, even though they don’t always offer top dollar.

Not every seller has months to prep, market, show, and close. Let’s look at some common reasons Detroit sellers choose Cash-For-Homes companies over listing the traditional way.

  • The home has major repair issues common in Detroit such as plumbing issues or termite damage.
  • The seller needs to move or cash in quickly due to divorce, job relocation, medical need, financial stress, etc.
  • The seller doesn’t have the means or desire to make repairs.
  • The seller doesn’t want to bother prepping the home, dealing with showings, negotiating, or navigating a long sales process.
  • The seller prefers the privacy of selling their home off-market to a cash buyer.
  • The seller is in the foreclosure process and wants to sell the home and settle up with the lender before it’s too late.
  • The seller inherited property and wants to unload it as quickly as possible.
  • The seller is a landlord who has problem tenants or no longer wishes to manage a rental property.
  • The homeowner is aging and moving into a care facility, prompting their family to sell the home.
  • The seller is living out of state and prefers the ease of a cash sale.

If any of these sounds like you, requesting a cash offer from a We Buy Houses for Cash company might be a good starting point, though it’s not your only option, and it may not be your best move (we’ll dive into your other options in just a minute!).

Pros and cons of house-buying companies in Detroit

By now, you’ve probably figured out that We Buy Houses for Cash companies in Detroit are a bit of a mixed bag. You get speed and service, but you may “pay” a sizable premium for that service. Let’s walk through a few pros and cons to consider while weighing your options.

Pros

One of the biggest advantages of working with We Buy Houses for Cash companies in Detroit is that you can sell your home “as is” with no repairs required, and they’ll buy homes in any condition.

If your home was severely damaged in a weather event, or you’ve fallen years behind on routine maintenance, you can still sell without needing to make the extensive repairs that financed buyers may require.

Here are some other pros to consider:

  • Speed: You can often sell your home in as few as seven days.
  • Certainty: Since the company does a pre-offer walk-through, their offer is firm and comes with few (if any) contingencies. Cash-For-Houses companies are experts at clearing roadblocks and closing deals.
  • No repairs: Again, if your home is in rough shape and you don’t have the funds or the patience to make repairs, you can skip them altogether and save yourself the stress.
  • Less hassle: You don’t have to deal with staging, open houses, fielding offers, negotiating with picky buyers, worrying about the appraisal, or stressing about the buyer’s financing falling through. Overall, reputable We Buy Houses for Cash companies in Detroit offer a smooth ride from offer to close.

That all may sound pretty great to you as a seller if you’re looking to move within weeks rather than the months it might take you to list and sell your home on the market with an agent. However, there are downsides to working with Cash-For-Homes companies. Namely, they typically offer substantially below market value for your home.

Cons

When considering an offer from a We Buy Houses site, remember that these are house-buying companies, which means they’re ultimately trying to make a profit. They plan to fix up your home and either resell it or rent it out. That takes considerable time, skill, and investment.

Here are some potential downsides to weigh:

  • Lower offers: Most companies follow the 70% rule, meaning they’ll offer you 70% of your home’s after-repair value (or the value that your house could sell for on the market once it’s all fixed up) minus repair costs. So the price you get for your home may be appreciably lower than what you’d get on the market.
  • Inconsistent market knowledge: Not all cash home buying companies are equal. Some are more localized, have specific neighborhood knowledge, and are able to leverage that expertise into more competitive offers. Others are less knowledgeable about the specifics of your community, which could result in lowball bids.
  • Not all companies are trustworthy: Some companies make extremely low offers to desperate homeowners and try to pressure you into making a quick decision. A few bad players may even engage in fraud tactics, though it’s uncommon.
  • They may use pressure tactics: These companies know that homeowners looking to sell quickly are often desperate, and some do take advantage of that by using pressure tactics. You should never feel pressured to accept an offer, especially since there are plenty of We Buy Houses for Cash companies in Detroit to choose from. If anyone makes you uncomfortable, it’s time to move on to another option.

Your home is more than a place where you make memories with family, it’s also likely your biggest asset. Sure, you want to sell quickly, but you could be leaving major money on the table if you choose to work with one of these We Buy Houses for Cash companies.

Always do your research, compare your options, and consult with a trusted advisor before accepting any offer.

Vet cash buyers and know your home’s worth

For many home sellers, We Buy Houses for Cash companies can be a solid solution to get a property sold quickly or to access cash for an expected life challenge. On the other hand, the “cash for your home” rehabbing business model has also led to what some housing advocates call predatory tactics.

The level of integrity and customer service you experience can vary, even within an established house-buying company that strives to maintain consistent business standards. This is because many We Buy Houses for Cash companies are franchises and often use independent investors or local wholesaling outfits. Your experience greatly depends on the character of the person or group making the offer.

If you are considering a cash offer, vet the company thoroughly. Check reviews, read testimonials, and research its presence and performance in the market. And, of course, read the buying agreement carefully before signing.

Before committing to a We Buy Houses for Cash company, HomeLight suggests you consult with a top agent to get a better idea of what your home might be worth if sold on the open market. Then compare cash offers to what a top agent might be able to get for your home. HomeLight can connect you with a top-performing agent in your market.

You can also use HomeLight’s free Home Value Estimator right now to get an initial ballpark estimate in less than two minutes.

Other options to sell your home quickly

iBuyers

Within the cash-for-homes business you’ll also encounter a particular group of companies known as iBuyers, or instant buyers.

iBuyer companies offer sellers many of the same conveniences of other house-buying operations, but they also leverage algorithmic technology, otherwise known as automated valuation models (or AVMs), to make you a near-instant offer on your home and provide a user-friendly, mostly online home sale experience.

iBuyers have only been around since the mid-2010s, but are now widely available across Michigan.

iBuyers offer all-cash and can close in a matter of days to a few weeks. But unlike more traditional We Buy Houses for Cash companies, iBuyers tend to look for homes in better condition and offer much closer to market value, typically in the 90% range — and sometimes more, particularly in a hot real estate market.

Though one thing to note is that major iBuyers like Opendoor, Offerpad, and Redfin usually charge sizable fees for their services, between 5% and 13%.

Sellers who may be a good fit to work with an iBuyer in Detroit include those who prefer to skip staging and showing their home, who live in an area with somewhat similar housing, and who have a home in relatively good shape.

Listing with an agent

You want to sell your house quickly, not in 78 days. But hear us out! With many housing markets still being largely seller-friendly, many listings are flying off the market in a matter of days, especially those that are priced strategically.

Going with an agent could pay off big time. Selling on the market generally fetches the highest home price, and that’s especially true if you work with a skilled professional. Our internal transaction data at HomeLight shows that the top 5% of real estate agents sell homes for up to 10% more than average agents.

This is a big financial decision, so it may make sense to consult with a trusted real estate agent who can complete a comparative market analysis (CMA) to help you understand your home’s value and how quickly it’s likely to sell.

Your agent may even be able to connect you with cash buyers who are willing to offer closer to market value for your home.

Plus, a CMA is usually free and you’re under no obligation to list with the agent, so this may be a good tool to explore your options. Even if you end up deciding to work with a Cash-For-Homes company, at least you’ll know you’re making a sound financial decision.

Overwhelmed by finding an agent? HomeLight would be happy to connect you with a top performer in your area today.

FAQs on Detroit house-buying companies

Are We Buy Houses for Cash companies legit or scams?

Most We Buy Houses for Cash companies are legit, and you can rest assured that this business model has been around for decades.

However, it’s always a good idea to keep an eye out for scams, or anything that just doesn’t seem right. Always thoroughly research companies ahead of time. Verify all professional licenses, check customer reviews, get a referral if possible, and vet the company on the Better Business Bureau website.

How much will We Buy Houses for Cash companies in Detroit pay?

Most Cash-For-Homes companies follow the 70% rule, meaning they’ll offer you 70% of your home’s after-repair value, minus repair costs.

Here’s what that simple formula looks like:

(Your home’s ARV x .70) – repair costs

Now let’s take a look at a practical example. Let’s say your Detroit bungalow could sell for $350,000 after repairs, but it’s going to need $80,000 of work to get there.

($350,000 x .70) – $80,000 = $165,000

In this example, a Detroit cash-for-homes company will probably offer you around $165,000 for your property.

However, different types of house-buying companies will offer varying amounts for homes. As mentioned previously, iBuyers tend to pay more like 90%-95% of market value while charging a fee for their services.

How much does selling a home to a We Buy Houses for Cash company in Detroit cost?

Selling a home to a We Buy Houses for Cash company shouldn’t cost you any money, though you’ll likely get less overall for your home.

Since these companies are geared toward distressed homes, they tend to have zero fees, and will even cover your closing costs. That means the offer you get is the price you should walk away with. Make sure to ask about any hidden program fees that could eat into your bottom line.

How do you sell a house for cash in Detroit?

  1. Research and vet house buying companies available in your area. The above list is a great place to start.
  2. Submit offer requests to your top few companies.
  3. Schedule any on-site visits.
  4. Field and compare offers. Choose the best option for you.
  5. Close in a week to 30 days and get paid (or you can often choose a later closing date, up to 90 days after receiving the offer)

We Buy Houses for Cash in Detroit vs. top Detroit agent

Wondering how a We Buy Houses for Cash company stacks up against working with a real estate agent? We’ve got you covered.

Aspect of the sale Sell to a We Buy Houses for Cash company in Detroit Sell with a top Realtor® in Detroit
Sale timeline 7 to 30 days 78 days average; 24 to attract an offer, 54 to close the loan
Home preparations None Make necessary repairs, deep clean, declutter, landscape, stage home
Showings None 10 to 25 showings average
Inspections / repairs None May need to make repairs for the buyer or renegotiate price
Appraisal None May need to lower the price if appraisal comes in low
Title search Cash-for-homes companies often handle title issues Must clear title before you can sell home
Financing contingency None Mortgaged buyers use a financing contingency that could hold up the deal if the loan doesn’t clear
Agent commission None 5.8% average
Closing costs None 1% to 3% of sale price on top of commission

Example net proceeds

Let’s say your bungalow home in Detroit is currently worth about $150,000 and needs about $15,000 in repairs. Once the repairs are made, the home should be worth around $165,000.

Sell to a We Buy Houses for Cash company in Detroit Sell with a top Realtor® in Detroit
Estimated sale price ($150,000 x .70) – $15,000 = $90,000 $150,000
Market preparations 0 $1,500 (1% of sale price)
Agent commissions 0 $8,700 (5.8% of sale price)
Closing costs 0 $2,250 (1.5%)
Estimated take-home for seller $90,000 $137,550

Obviously, financially it’s usually in your best interest to go with a top agent, but depending on the condition of your home and any repairs needed, selling on the open market could be challenging.

Key takeaways

  • We Buy Houses for Cash companies in Detroit can offer you a way to sell your home in as few as seven days with no repairs, showings, or hassles.
  • There are many reputable cash homebuying companies across Detroit, and most sellers going this route can find a company that suits their needs.
  • You could leave significant money on the table using a Cash-For-Homes company versus going with a top agent or iBuyer.
  • HomeLight’s Simple Sale platform provides no-obligation all-cash offers for homes in almost any condition in Detroit. Because the platform has partner investors with different buying parameters across the region, it can be a great starting point if you aren’t sure who would buy your home.

House buying companies can be a good alternative for Detroit sellers in need of a quick exit from homeownership, but they’re not without drawbacks. However you choose to sell your home, it’s important to avoid making a hasty decision.

For best results, take the time to weigh your options, gather offers from multiple companies, and consider consulting with a top agent to see how easily your property could sell on the market. Whatever you decide, HomeLight would be happy to help with your real estate needs!

Header Image Source: (Sean Pavone / Shutterstock)

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