Closing Costs in Michigan: A Guide for Sellers
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
When selling your home, the dollar amount it sells for and what you’ll actually walk away with will likely differ substantially. Before planning your next steps, you’ll want to factor in your closing costs to determine how much money you’ll actually pocket when the sale is completed.
If you’re selling your home in the Wolverine State, you might have asked yourself, “What are my closing costs in Michigan?”
Michigan sellers usually pay closing costs ranging from 6% to 10% of the home’s sale price. These costs include title searches, title insurance, and transfer taxes.
Our guide will break down seller closing costs in Michigan, giving you an idea of what to expect regarding your bottom line.
What are closing costs?
Closing costs are any fees paid when finalizing the purchase or sale of your property. They can include a wide range of fees, like property taxes or insurance; most are standard for homeowners and sellers. Others, like transfer taxes, will vary depending on where your home is located when it sells.
Mortgage/Loan payoff amount
Before transferring your title to a new owner, you’ll need to pay off any remaining balance on your mortgage. This will include the principal (the amount actually owed), along with any remaining interest. To get an idea of what you’ll owe, you can use a closing costs or mortgage payoff calculator to assist you.
Depending on how deep you are into your mortgage, you may also be on the hook for a pre-payment penalty. Lenders typically charge this to deter homeowners from paying their mortgages off early, as it costs the lender money.
Property taxes
According to WalletHub, Michigan ranks 38th in the country in terms of property taxes, just outside of the top 10 highest in the nation.
Real estate in Michigan is taxed at a rate of 1.35%, with a median home value in the state of $201,100. To get a better idea of what you might owe, consult a property tax calculator.
