A house that needs a new roof, foundation work or updated wiring is hard to sell the usual way. Kalamazoo adds one more wrinkle: if it’s a rental inside the city, it also has to pass the city’s rental inspection. Here’s how to weigh your choices.
Fix it first, then list it
Repairing before you list usually gets the highest price, because more buyers and more kinds of loans can work. The costs are real, though:
- You pay for the work up front, and older houses often hide more problems behind the walls.
- Bigger projects may need permits and inspections from your city or township.
- Taxes, insurance, utilities and any mortgage keep running while the work is done and the house sits on the market.
- The buyer’s inspector can still find things and ask for more repairs or a lower price.
List it as-is
You can list with an agent and say up front that you won’t make repairs. That saves the repair bill, but:
- Buyers using FHA or VA loans need the house to meet the lender’s minimum property standards, so a house with major problems may not qualify for those loans.
- Most buyers still inspect, and many come back asking for a lower price.
- You’ll usually pay a commission and some closing costs, and the sale can take months.
Sell it as-is to a cash buyer
A direct buyer takes the house in its current condition: no repairs, no showings and no waiting on a lender. You choose the closing date. The trade-off is price. A cash buyer pays less than the house would bring fully renovated, because the buyer takes on the repairs and the risk.
Before you accept any cash offer, ask:
- Will you put the offer in writing, and how did you get to that number?
- Who pays the closing costs?
- Are you buying it yourselves, or assigning the contract to someone else?
- Which title company will close it?
Selling a Kalamazoo rental that needs work
All rental properties in the City of Kalamazoo must be registered and certified, and the certificate is renewed through an inspection. If a rental needs repairs to pass, your choices are to fix it and re-certify, sell it to an investor who will, or sell it with the tenants in place. Before you sell, ask the city’s rental housing office (311) where the property’s certificate stands.
What you still have to disclose
Selling as-is doesn’t remove the duty to tell buyers what you know.
- Michigan’s Seller Disclosure Act usually requires a seller disclosure statement for homes with one to four units, delivered before a binding purchase agreement is signed. Some sales are exempt, such as foreclosure sales and sales by a personal representative who doesn’t live in the house (MCL 565.951–565.966).
- For homes built before 1978, federal rules require sellers to disclose known lead-based paint and hazards, hand over the EPA lead pamphlet, and give the buyer 10 days for a lead inspection, which the buyer can waive (EPA).
General information only, not legal advice. For questions about a specific property, talk with a Michigan real estate attorney.
Run the numbers before you decide
- List what the house needs and get bids from one or two licensed contractors.
- Add up your monthly holding costs (taxes, insurance, utilities, mortgage) and multiply by the months it would take to repair and sell.
- Subtract repairs, holding costs, commissions and closing costs from a realistic sale price, then compare that with a written as-is offer.
If the house came to you through an estate, read our guide to selling an inherited house in Kalamazoo County. If the taxes are behind, see how to stop a tax foreclosure in Kalamazoo County.
How Grayline Real Estate buys Kalamazoo houses as-is
We buy houses and rentals in any condition across Kalamazoo County, including Kalamazoo, Portage, Oshtemo, Parchment, Comstock and Texas Township. You’ll have a written cash offer within 24 hours, and we can close in as little as 10 days or on the date you pick. No repairs, no cleaning, no commissions, and we cover the closing costs. See how our process works.
Ernesto Rodriguez is a licensed Michigan real estate broker, so we can show you how a cash offer stacks up against listing. Call 616-816-5111 or request your cash offer.