Michigan Seller Closing Cost Calculator (2022 Data)
Jump to section: Michigan closing cost calculator | Breakdown of seller's net sheet for Michigan | How to save on seller closing costs in Michigan | FAQ
Try our Michigan seller closing cost calculator to calculate your potential net proceeds when selling your home in Michigan. Costs and other withholdings vary depending on several criteria, like market factors, local and county regulations, sales price, and realtor commissions.
💰 Quick Tip: The best way to save on closing costs is to lower your realtor commission rate, which is the biggest closing cost by far. Find your realtor through Clever's free agent matching service, get pre-negotiated low rates, and save up to 50%. Learn more |
Michigan closing cost calculator
Breakdown of seller's net sheet for Michigan
🔍 Closing cost | 📊 Average rate | 💰 Amount* |
|---|---|---|
5.65% | $13,400 | |
N/A | $20 | |
N/A | $400–$850 | |
N/A | $25–$50 | |
N/A | $75–$125 | |
0.30% | $711 | |
varies | varies | |
0.56% | $1,328 | |
0.75% | $1,779 | |
0.11% | $261 | |
Amount calculations are based on Michigan's median home sales price of $237,156.[1] | ||
Realtor commission (5.65%)
Sellers typically pay realtor commissions from their home sales proceeds for both their listing agent and the buyer’s agent. The average rate in Michigan is 5.65%, with 2.77% going to the seller’s agent and 2.88% to the buyer’s realtor. Rates vary by local market and agent.
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Deed preparation ($20)
Sellers typically pay the fee for professionally drafting a new deed in the buyer’s name and transferring the home's title.
Home warranty ($400–$850)
Home warranties provide various levels of coverage for appliances and major home systems, like maintenance, repairs, and some replacements. Purchasing a seller’s home warranty provides limited coverage through closing.
Overnight mailing fee ($25–$50)
Sellers with outstanding home loans may need to pay overnight mailing fees for a prompt loan payoff delivery following the closing. Wiring fees may also apply if you wire your net proceeds to your bank rather than write a check. Those fees run about $25 to $35.
Pest inspection ($75–$125)
You’re generally not required to perform a pest inspection to sell your Michigan home. But if a home inspection uncovers potential past or present infestation, then a pest inspection will be necessary. You may also benefit from a home inspection even when not required due to the goodwill showing for buyers.
Settlement fee ($711)
Michigan closing agents like title companies, escrow firms, or settlement attorneys oversee the process of transferring ownership and funds. They also ensure all the necessary documents are signed correctly and notarized as required. The seller’s settlement agent may also perform an initial title search to confirm ownership and a clear title.
Prorated property tax
Michigan property taxes are complicated, as some line items are billed in advance and others in arrears. There are two billing dates each year in early July and December, but due dates vary by region.[2]
Generally, sellers must pay a prorated tax amount covering the time from their last property tax delivered date to the closing date. A property tax proration calculatorcan help you determine the more exact amount due.
Title insurance ($1,328)
Title insurance policies protect the lender and the new homeowner from potential future title problems. It’s common for the seller to pay for an owner’s title policy in Michigan. In doing so, you’re essentially guaranteeing clear title to your buyer.
State and county transfer taxes
Michigan and its counties tax most real estate transfers on sales of more than $100 between non-related parties. The state tax rate is $3.75 per $500 of property value (0.75%).[3] The county rate is $0.55 per $500 (0.11%).[4] The seller normally pays those conveyance taxes. You’ll pay in the county of residence and report the payment on a Real Estate Transfer Valuation affidavit.
More on Michigan county tax rates
Any Michigan county with a population exceeding two million residents may charge $0.75 per $500 (0.15%) in transfer taxes. However, no county is above that minimum. Michigan’s most populous county is Wayne, reporting a population of 1,734,010 for 2022.
(Use our Michigan seller closing costs and net proceeds calculator here)
How to save on seller closing costs in Michigan
Sell with a low-commission realtor
The standard real estate agent rate is 2.5–3% for each side of the home sales transaction, for a total 5–6% expense. As a seller, you should offer a competitive market rate for buyer’s agents to encourage them to show your home to qualified buyers.
You have more flexibility when choosing your listing agent, especially with the growing popularity of low-commission realtors. Consider an agent matching service like Clever Real Estate to find a top local realtor who will help you sell your home for more. And maximize your net sale proceeds with Clever's pre-negotiated 1.5% listing fees.
Negotiate closing costs with the buyer
Many closing costs are negotiable. You may be able to lower your financial burden by having the buyer pick up some extra costs. This approach is most successful in a seller’s market where the buyer is eager to stand out among many others competing for a home. Talk to your realtor to learn whether negotiates make sense for your situation.
Michigan seller closing cost calculator FAQ
Any transfer of real property in Michigan is subject to state and county transfer taxes, which the seller usually pays.
You are also responsible for your share of property taxes when you sell. The buyer must bring money to the closing to cover their share of property taxes, too, along with other buyer closing costs.
You may also owe capital gains taxes if you profited from the sale of your home. Sellers may exempt up to $250,000 (single filers) or $500,000 (joint married filers) for federal capital gains tax purposes. You must have owned the home for at least two years and used the house as your primary residence for a total of two years out of the past five years.
The seller traditionally pays transfer taxes in Michigan. Those tariffs are due when the new deed is recorded.
The average price of a Michigan owner’s title policy is approximately 0.56% of the home purchase price. An owner’s policy on a $250,000 home may be around $1,400.
Your rate will vary depending on the title company, tiered pricing rates, and whether you opt for supplemental coverage. For example, the expanded Eagle Owner’s policy covers several issues that may occur after you purchase the policy, like forgery, encroachment, and adverse possession, plus various additional title issues.
Michigan Department of Treasury. "Taxes- Frequently Asked Questions."
Michigan Legislature. "STATE REAL ESTATE TRANSFER TAX ACT (EXCERPT) Act 330 of 1993."
Michigan Legislature. "REAL ESTATE TRANSFER TAX (EXCERPT) Act 134 of 1966."