What Michigan buyers need to know before purchasing, what to watch for during the process, and how to protect yourself from start to close.
View All ResourcesBuying a home is not a casual transaction. In Michigan, a standard residential purchase involves a legally binding contract, dozens of documents with significant financial and legal implications, multiple licensed professionals with their own interests and obligations, and a compressed timeline that makes it difficult for buyers to slow down and verify what they are agreeing to.
Coventry Enterprises LLC provides buyer education resources because informed buyers make better decisions and are harder to take advantage of. This is not theoretical. The committee's review work consistently shows that transaction problems cluster around buyers who did not know what questions to ask, did not understand what protections they had, and did not recognize warning signs that should have prompted more investigation.
Jack Bodenstein has emphasized from the beginning that education is the most effective form of oversight, applied before problems occur rather than after. These resources reflect that commitment.
Before looking at homes seriously, get pre-approved by a lender, not just pre-qualified. Pre-qualification is an estimate based on what you tell the lender. Pre-approval involves verification of your income, assets, and credit and results in a conditional commitment to lend. Know your budget before you fall in love with a house. Also understand the difference between your maximum loan amount and what you can comfortably afford to pay monthly.
In Michigan, real estate agents must disclose who they represent. A buyer's agent represents your interests, not the seller's. Dual agents represent both parties, which creates a conflict of interest that limits what the agent can do for either party. Choose an agent who will exclusively represent you and who you can trust to give you honest information even when it might cost them a commission.
Use publicly available records to learn about the property's history. Check permit records with the city or township to see what work has been done. Look at prior sale prices and dates. Search for any code violations or open permits. In Detroit, the city assessor's portal and the Building Safety Engineering Environmental Department records are useful resources. Going into an offer knowing the property's history gives you a stronger negotiating position and may surface concerns worth investigating further.
Michigan law requires sellers to provide a disclosure form before you are legally bound. Read it carefully. If sections are blank or marked "unknown" on a property the seller has owned for years, ask why. Compare what the seller discloses against what you observe during showings and what the permit history shows. Discrepancies deserve investigation. You have a right to request additional information and to walk away before signing if the disclosures raise unresolved concerns.
A professional inspection by a licensed Michigan inspector is one of the most important things you can do. Pay for the inspection yourself and hire your own inspector, not one recommended by the seller's agent. Be present during the inspection. Read the full report. Ask your inspector to explain anything you do not understand. If the inspection reveals issues, get professional estimates before deciding how to proceed. And if the property's age or location warrants it, order specialized testing for radon, lead paint, or mold as well.
The purchase agreement is a binding legal contract. Read all of it. Understand the contingency periods, what triggers them, and how they protect you. Understand what happens to your earnest money if the deal falls through under different scenarios. Understand what representations the seller is making in the agreement. If anything is unclear or concerns you, consult a Michigan real estate attorney before signing. The cost of a lawyer reviewing a contract is small compared to the cost of a bad transaction.
Compare your Closing Disclosure, received at least three days before closing, to your Loan Estimate from when you applied. The interest rate, loan amount, monthly payment, and closing costs should be consistent between these documents. If numbers have changed, ask why before you close. You have a right to understand every fee on your closing statement. Unexplained fees or changes from your Loan Estimate are worth questioning.
Before closing, do a final walk-through of the property. Verify that any agreed repairs were completed. Verify that all included items are present. Check that the property is in substantially the same condition as when you made the offer. If you find problems at the final walk-through, you have options before you sign the closing documents. After closing, your options narrow considerably.
These are warning signs that something may be wrong with a transaction. None of them is automatically disqualifying, but each warrants careful investigation before proceeding.
Seller refuses to allow inspections: This is a significant warning sign. A seller who insists on waiving inspection contingencies as a condition of accepting your offer may be concealing problems they do not want discovered.
Disclosure form has many "unknown" answers from a long-term owner: A seller who has lived in a home for 15 years should know whether the basement has ever taken on water. "Unknown" answers on conditions a reasonable owner would know about deserve follow-up.
Pressure to close quickly: Artificially short timelines can prevent you from completing proper due diligence. When sellers or their agents push for unusually fast closings, understand why before agreeing.
Price reductions with no explanation: A significant recent price reduction without explanation may indicate that other buyers found problems. Ask your agent to find out what happened with prior offers.
Your agent is also representing the seller: Dual agency is legal in Michigan with disclosure and consent, but it limits what the agent can do for you. Understand what you are giving up before consenting to dual agency.
Unpermitted work visible in the property: Additions, finished basements, and converted garages that do not show up in permit records may have been done without permits. Unpermitted work can create code compliance issues and affect insurance and resale.
Michigan buyers have specific rights that are worth knowing before you start the purchase process. You have the right to receive a completed Seller Disclosure Statement before signing a purchase agreement. You have the right to rescind the purchase agreement within a specific period if the seller provides a new or materially different disclosure after you have signed. You have the right to a licensed inspection with adequate time to respond. You have the right to an accurate Loan Estimate within three days of application and an accurate Closing Disclosure at least three days before closing. And you have the right to full, honest representation from any licensed real estate professional you hire.
When these rights are not honored, the committee is available to review what occurred. For more about what to do when something goes wrong, visit the contact page. For additional educational resources, see the real estate glossary and the FAQ.
Get pre-approved for financing so you know your real budget. Research the property's history using public records. Engage a buyer's agent who exclusively represents your interests. Read any available information about the property, neighborhood, and recent comparable sales. The more you know before making an offer, the better positioned you are to negotiate and to identify concerns that warrant investigation.
Sellers who refuse inspections, disclosure forms with implausible "unknown" answers from long-term owners, pressure to waive or shorten contingencies, unexplained price drops, dual agency without clear explanation of what that means for you, and evidence of unpermitted work. None of these are automatically deal-killers, but each deserves careful investigation before you proceed.
No Michigan law requires a buyer to get an inspection. But it is one of the most important things you can do to protect yourself. A professional inspection reveals conditions that may not be visible in a showing and gives you factual information to base decisions on. Skipping an inspection to make your offer more competitive saves you a few hundred dollars now and can cost you tens of thousands later.
Michigan does not require buyers to use an attorney in residential transactions. But having a Michigan real estate attorney review the purchase agreement is a worthwhile investment, especially if there are unusual terms, if you are buying without an agent, or if you have concerns about any aspect of the transaction. The cost is modest relative to the stakes involved.
Earnest money is a deposit the buyer provides when making an offer, held in escrow until closing. Whether you can get it back if the deal falls through depends on why it fell through and how the purchase agreement's contingency provisions are written. If the deal fails because a contingency was not satisfied (financing not approved, inspection revealed problems and seller refused to remedy) and you properly exercised your contingency rights within the required timeframe, you are typically entitled to a refund. If you back out for reasons not covered by contingencies, you may forfeit the deposit. This is one reason to understand contingency provisions before signing.
Coventry Enterprises LLC offers a range of educational resources for real estate transactions in Michigan. Explore the full collection.
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