Thinking about selling your house in Detroit? Which way do you choose? Selling to a real estate investor, aka a cash buyer or a licensed real estate agent, on the open market? Both options can work, but they offer very different experiences.
The right path depends on your goals, your timeline, and the condition of your home. Let’s find which route is the smartest: Selling to Investors vs Real Estate Agents in Detroit, MI.
Local Detroit, MI Realities to Consider
Data shows that over the last year, home prices in Detroit went up about 16%, with the median price now around $110,000. That means if your home is in good condition, an agent may be able to list it for more than you could have just a year ago.
At the same time, there aren’t many homes for sale, especially affordable ones under $100,000. Those homes sell fast, which is good news for sellers on the open market. On the other hand, the shortage also helps investors, as they can still find demand for properties that need fixing up.
And with about 7% of Detroit home purchases coming from institutional investors, cash offers remain a steady option for sellers who want speed and convenience.
Selling Property to Investors in Detroit
Investors are companies that purchase houses with cash. They buy houses ‘as-is’ meaning you don’t have to fix or clean anything before closing. After buying, they may renovate the property to resell at a higher price, or keep it as a rental.
When you contact an investor or a ‘we buy houses’ company such as Money Team Properties in Detroit, they’ll review your property details, sometimes visit in person, and make a cash offer. If you accept, the closing can happen in one to two weeks.
Pros of Selling Your House to Investors
Fast Closings
Traditional home sales can take months, but investors who pay in cash can often close in as little as 7 to 14 days. If you are relocating, facing foreclosure, or just need cash quickly, this speed is a major advantage.
Sell As-Is
You don’t have to repair a leaky roof, replace broken windows, clean any messes, put unwanted things on the curb, or repaint the walls. Investors can handle repairs themselves. For homes in poor condition, this can save you thousands of dollars in upfront costs.
Less Stress and Effort
You can skip the step of staging, open houses, showings, and constant cleaning. Once you accept the offer, most of the hard work is done.
No Financing Problems
Investors usually pay in cash; you don’t risk the deal falling apart because a buyer’s mortgage didn’t get approved. That certainty can give sellers satisfaction.
Cons of Selling to Investors
Lower Sales Price
Investors make money by reselling or renting the house, so their offers are almost always a bit below market value. Depending on your home’s condition, they may offer anywhere from 60% to 90% of what you’d get listed on the MLS.
Limited Competition
When you sell to an investor, you are typically only negotiating with one buyer. On the open market, multiple buyers may compete for your house, which can drive the price higher.
Possibility of Scams or Unreliable Buyers
Not all investors are professional or trustworthy. Some may include hidden fees in contracts, delay closing, or try to renegotiate the price at the last minute.
Selling with a Real Estate Agent in Detroit
When you hire an agent, they list your home on the MLS, market it online, and schedule showings. Interested buyers make offers, and your agent helps you negotiate. Once you accept an offer, the process typically involves inspections, appraisals, and financing approvals before closing.
Pros of Selling Your House With An Agent
Higher Potential Sale Price
Listing with an agent exposes your home to the full Detroit market. Buyers compete, which provides multiple offers and higher sale prices. If your home is in good condition, you fetch more net profit.
Market Expertise and Negotiation
A GOOD agent knows Detroit area neighborhoods well, recent sales, and what buyers are looking for. They can help you set the right price and negotiate better terms, whether that’s a higher offer and fewer contingencies.
Professional Marketing
Agents handle photos, staging, and listing descriptions that attract serious buyers. Your property gets listed on the MLS, Zillow, Realtor.com, and other platforms, maximizing visibility.
Cons of Selling with an Agent
Longer Timeline
Detroit homes often sell faster than the national average, the process still takes time. It may be 30–60 days to find a buyer and another 30–45 days to close, and it depends on financing and inspections.
Upfront Costs and Prep Work
To get the best price, you’ll likely need to make at least some repairs, repaint walls, or upgrade outdated features. You may also need to pay for staging, professional cleaning, or landscaping.
Showings and Disruption
Buyers will want to see your home in person, sometimes at inconvenient times. Keeping your home clean and show-ready for weeks can be stressful, especially if you have kids or pets.
Commission Fees
Agents charge around 5.73% of the sale price as commission. While a higher selling price often makes up for this cost, it’s still money out of your pocket.
Possibility of Unreliable Agents
Not all agents are professional, trustworthy, or knowledgeable. Some may have higher fees, many won’t know the market well, and many just list your property and sit around and wait (typically starting with an unrealistic high asking price, and dropping the price weekly/monthly until you get a sale).
How to Compare Your Net Profit with Investors vs Real Estate Agents in Detroit?
Sometimes the agent route nets more, even after commissions, especially when the market is active. But if time is money for you, the investor route is a win-win and beats a listing that stalls or needs heavy fixes. Here is how you can compare your net profit when selling a property in Detroit:
- Start with a realistic market value, and for this, look at recent comps or ask an agent.
- Then, subtract the agent commission, around 5–6% total, and estimated repair/holding costs.
- Now, compare that net to the investor’s cash offer, often 60–90% of the market, depending on condition.
Final Words
If your house is in good condition and you want top dollar, listing with an agent is the best option. But if you need to sell fast or don’t want to deal with repairs, selling as-is to a cash buyer is the easier option.
Companies like Money Team Properties in Detroit specialize in buying houses as-is, offering quick closings and fair cash offers. Always compare both options so you know which route fits your needs.