Cash Buyer vs Realtor vs FSBO in Michigan

Every Michigan home seller faces this choice: list with a realtor, sell yourself (FSBO), or sell direct to a cash buyer. Most articles dance around the answer because they're trying to convert you to one specific path. We're going to give you the actual math and let you decide.

The Honest Comparison Table

Factor	Cash Buyer	Realtor	FSBO
Average Michigan time to close	7-21 days	60-120 days	90-180+ days
Sale price (% of ARV)	~70% − repairs	~95-100%	~92-98%
Commission paid	$0	5-6% (~$15k on $250k home)	0-3% (buyer agent)
Closing costs	Buyer pays all	Seller pays 2-3%	Seller pays 2-3%
Repairs needed before sale	None	Often $5k-$20k+	Often $5k-$20k+
Showings/open houses	1 walkthrough	10-30+	10-30+ (you host)
Marketing & photos	None needed	Agent handles	You pay ($300-$1500)
Sale falls through rate	~5%	15-20%	20-25%
Carrying costs while selling	~0	2-4 months	3-6 months
Stress level	Low	Medium-High	High

Real Detroit Example: $200,000 ARV Home Needing $30,000 in Repairs

Line Item	Cash Buyer	Realtor	FSBO
Sale price	$110,000	$200,000	$195,000
Pre-sale repairs	$0	−$25,000	−$25,000
Realtor commission (5-6%)	$0	−$11,000	−$5,850 (buyer agent only)
Closing costs (2.5%)	$0	−$5,000	−$4,875
Title insurance, transfer tax	$0	−$2,800	−$2,800
Marketing/staging/photos	$0	$0 (agent handles)	−$1,000
4 months carrying costs	$0	−$4,800	−$6,000 (6 months)
Net to seller	$110,000	$151,400	$149,475

Realtor still nets $40k more in this example — IF the home sells at full ARV, IF you can afford the repairs upfront, and IF you can wait 4-6 months. Cash works better when any of those "ifs" don't hold.

When Cash Buyer Wins

• You can't afford or don't want to make repairs
• Time pressure (foreclosure, relocation, job change)
• Inherited property (carrying costs eating equity)
• Vacant property (insurance, vandalism, code risks)
• Tenant-occupied with problems
• You want certainty (no deals falling through)
• You'd rather have $110k now than $151k in 4 months

When Realtor Wins

• Home is in good or great condition already
• You have 4-6 months and can manage showings
• You're financially stable enough to absorb carrying costs while selling
• The local market is hot (multiple offers likely)
• You want maximum dollar amount

When FSBO Wins

• You have real estate experience or know an attorney
• Your home will sell quickly (great location, condition, price)
• You have time to handle marketing, showings, and negotiations
• You want to avoid listing-side commission ($5k-$10k savings on typical Michigan home)

The Hidden Cost Most Michigan Sellers Miss

Carrying costs. While your home sits on the market, you're paying:

• Mortgage (or full property cost if owned outright)
• Property taxes (proration adds up)
• Insurance
• Utilities (yes, even minimal usage adds up)
• Lawn care, snow removal
• HOA fees (if applicable)
• Maintenance and any emergency repairs

For a typical Michigan home, this runs $1,200-$2,500/month. A 4-month traditional sale = $4,800-$10,000 in carrying costs that erode your "higher" sale price.

Decision Framework

Answer these 3 questions:

1. How much time do I have? <2 months → cash buyer. 2-4 months → iBuyer or experienced agent. 4+ months → realtor or FSBO.
2. How much repair work does my home need? $0-$5k → realtor. $5-$15k → realtor with strategic repairs. $15k+ → cash buyer.
3. What's my financial cushion? Can absorb 4-6 months of mortgage + carrying costs while marketing → realtor. Cannot → cash buyer.