Understanding Closing Costs for Sellers in Michigan

Selling your home in Michigan involves several costs, and understanding these can help you prepare financially for the process. Here’s a breakdown of the typical closing costs you can expect as a seller in Michigan:

Title Insurance Policy

One of the primary expenses is the seller’s title insurance policy. This cost is based on the sale price of the home. Title insurance protects the buyer from any claims or disputes over the property.

Michigan Transfer Tax

Michigan imposes a transfer tax on the sale of real property. This tax is 0.75% of the purchase price. For example, if you sell your home for $200,000, the transfer tax would be $1,500 (calculated as $200,000 * 0.0075).

Revenue Stamps

Revenue stamps are another fee to consider. In Michigan, these are $1.10 per $1,000 of the sale price. For a $200,000 home, the cost would be $220 (calculated as $200,000 / $1,000 * $1.10).

Brokerage Fee

If you list your home with a Realtor, there will be a brokerage fee. This fee is negotiable and can be either a set amount or a percentage of the listing price. Working with a professional Realtor can provide you with expertise and support throughout the selling process.

Title Company Closing Fee

The title company charges a closing fee for their services, typically ranging from $300 to $500. This fee covers the administrative work involved in closing the sale.

Recording Fees

There are also fees for recording the deed, discharging the mortgage, and other necessary documentation. These fees ensure that all legal paperwork is properly filed with the county.

Additional Negotiable Costs

Several other costs may be included as part of the negotiations with the buyer, such as:

  • Inspections: The cost of any required home inspections.
  • Survey: If a survey of the property is needed.
  • Broker Administration Fee: Most brokers charge an additional administrative fee.
  • Buyer’s Closing Costs: Sometimes, sellers agree to cover part of the buyer’s closing costs.
  • Tax Prorations: Any property taxes that need to be prorated between the buyer and seller.
  • Home Warranty: Offering a home warranty to the buyer as part of the sale.

The Importance of Professional Guidance

Understanding these fees is crucial before you sell your home. Each transaction is unique, and the specific costs can vary. Hiring a professional Realtor can help you navigate these expenses and ensure a smooth selling process. A Realtor’s expertise can be invaluable in helping you understand and manage your closing costs effectively.

If you’re considering selling your home in West Michigan, I’m here to help. Contact me to learn more about how I can assist you in understanding and managing your closing costs, making your selling experience as seamless as possible.

This post was written as of June 17, 2024 and costs may change as time progresses.

RE/MAX SunQuest, 6740 Cascade Rd SE STE 4, Grand Rapids, MI 49546