Selling a Home in Michigan
Michigan sellers pay both a state and a county Real Estate Transfer Tax at closing — 0.75% state plus 0.11% county for a combined seller rate of 0.86% of the sale price. On top of transfer tax, sellers pay agent commissions, the owner's title insurance policy, settlement fees, and recording fees.
Michigan Transfer Tax & Closing Costs
Michigan closings are handled by title companies. The seller customarily pays the full state and county transfer tax and the owner's title insurance policy; closing fees are typically split with the buyer.
How to Estimate Your Michigan Net Proceeds
- Sale Price: Start with the agreed-upon contract price.
- Mortgage Payoff: Subtract your remaining loan balance and accrued interest through closing.
- Transfer Taxes: Apply the state, county, and any municipal transfer tax owed by the seller.
- Closing Costs: Deduct commissions, owner's title insurance, attorney/escrow, and recording fees.
Michigan Net Proceeds = Sale Price − Mortgage Payoff − Commissions − Transfer Taxes − Closing Costs
