There are all kinds of articles on the web for first time buyers. Plenty of advice, including seminars, classes and such. But rarely do I hear someone talking about first time sellers and the questions they may have. Yes, first time sellers have been on the other side of the transaction once, but the needs of a seller are quite different from the needs of buyer.
If this is the first time you are selling a Michigan home, here are some things you may not know:
- Michigan property taxes are paid in advance, so you will receive a credit back from the buyers at close for the property taxes you have pre-paid. Who doesn’t like getting money back?
- Chances are that you did not pay your buyer’s agent a commission when you bought your home. It was paid by the seller. In Michigan, the sales commission is traditionally paid by the seller and is most often paid at close to your listing brokerage. They, in turn, pay your agent and the the buyer’s broker who pays the buyer’s agent. So that commission is actually split four ways in the end.
- Interview a few agents. The best listing agent is not necessarily the best buyer’s agent. Look for a good marketing plan first and foremost. Take a look at Dear Mr. & Mrs. Seller, here is what you need to do and Help! I can’t find your agent for some thoughts on what you should be looking for in a listing agent. If you need a referral for a listing agent anywhere across the US, let us know.
- The seller traditionally pays the transfer tax, which is calculated at $8.60 per thousand dollars. For example, on a $250,000 sale the transfer tax would be 250 x $8.60 for a total of $2,150.
- The seller also pays for title insurance, which protects the seller against claims against the title that might be made after the sale. The cost of the title insurance varies based upon the sale price of the home. If you provide your previous title insurance, you are likely to receive a discount.
- In a strong market, where real estate is appreciating, it is challenging to recoup the expenses associated with selling in the first few years after a purchase.
- Michigan law requires you to provide a purchaser with the following documents: a seller’s disclosure and a lead based paint disclosure.
- There are a number of things you can do to help you get maximum value for a home. A few that come to mind include: make sure it “shows” as well as possible, price it correctly for market conditions, make sure you have an agent who can offer you maximal market exposure and make showings as convenient for buyers as possible.
- You can use a home warranty during the listing period, if your agent places one on your home, should the stove or microwave suddenly go out. We’ve discussed that more thoroughly in Is a home warranty warranted?
- Today, selling a Michigan home takes a little patience and a strong team effort between the seller and the listing agent. Houses are selling every day. Position yours to be the best in its class and you will be rewarded.
[tags]selling a michigan home, first time home seller, sell michigan home, first time michigan home seller[/tags]