What Fees Are Involved When Selling a House in Michigan?

Selling a house in Michigan involves more than just accepting an offer. Before you walk away from the closing table, there are several fees and costs that come out of your proceeds. Here's a complete breakdown so there are no surprises.

Real estate agent commissions

Is completely negoriable and depending on the services provided by your agent.

Transfer taxes

Michigan charges a state transfer tax of $3.75 per $500 of the sale price (0.75%). Counties add an additional $0.55 per $500 (0.11%). Combined, you're looking at roughly 0.86% of the sale price in transfer taxes, paid by the seller.

Title insurance and closing fees

In Michigan, it is customary for the seller to pay for the buyer's owner's title insurance policy. This typically costs 0.5–1% of the sale price depending on the title company. Closing fees and settlement charges from the title company are usually split or negotiated between buyer and seller.

Prorated property taxes

Sellers are responsible for property taxes up to the date of closing. Michigan property taxes are paid in arrears, so you will typically owe a prorated credit to the buyer at closing for the portion of the year you owned the home.

Mortgage payoff

If you have a mortgage on the property, the remaining balance plus any prepayment penalties will be paid off at closing from your sale proceeds. Request a payoff statement from your lender before closing.

Repairs and concessions

After the buyer's inspection, you may be asked to make repairs or offer a credit toward closing costs. These are negotiable and vary by transaction, but it's smart to budget 1–2% of the sale price for potential concessions.

How much will I net from the sale?

As a rough estimate, sellers in Michigan typically net 88–92% of the sale price after commissions, taxes, title, and other closing costs. Crystal Hallack can provide you with a detailed seller's net sheet so you know exactly what to expect. Contact her today for a free estimate.