1. Transfer Taxes: The 0.86% Most Sellers Forget
Michigan charges a state transfer tax of $3.75 per $500 of value (0.75%) and most counties — including Wayne, Oakland and Macomb — add $0.55 per $500 (0.11%). Combined, budget 0.86% of the sale price: on a $400,000 sale that is $3,440, customarily paid by the seller at closing.
Because transfer tax scales with price, two offers $10,000 apart are really about $9,900 apart after tax — one of several reasons to judge offers on net, not headline price.
2. Title Insurance and Tax Prorations
Michigan custom has the seller provide the owner's policy of title insurance at a state-regulated tiered rate (roughly $1,800–$2,200 on a $400,000 sale). Property taxes are prorated to the exact day of closing: depending on summer and winter billing cycles you may owe a credit or receive one, and on higher-tax properties this line can move your net by thousands.
- Mortgage payoff, including any home-equity line, comes out of proceeds first.
- Agreed repairs or buyer concessions reduce net dollar-for-dollar.
- HOA document and transfer fees, where applicable, are usually small but real.
3. Read the Net Sheet Before You Sign
Before accepting an offer, ask your broker for a seller net sheet on each offer side by side. An offer with a lower price but no concessions, a waiver of repairs, or a faster close can net you more than the highest bid. At Babylon Realty every listing conversation starts with the net — get yours with a free valuation below.
Frequently Asked Questions
How much are seller closing costs in Michigan?
Beyond brokerage commission (a negotiable contractual rate agreed before listing), Michigan sellers customarily pay combined state and county transfer taxes of $4.30 per $500 of sale price (0.86%), the owner's title insurance policy at a state-regulated tiered rate, and property tax prorations to the day of closing.
Who pays Michigan transfer taxes, buyer or seller?
By custom in Wayne, Oakland and Macomb counties the seller pays the transfer taxes: state $3.75 per $500 (0.75%) plus county $0.55 per $500 (0.11%), for a combined 0.86% of the sale price.
What is a seller net sheet?
A net sheet estimates your actual proceeds: sale price minus mortgage payoff, transfer taxes, title insurance, tax prorations, commission and any agreed buyer concessions. Ask for one before accepting any offer — the highest price is not always the highest net.
