How Much Does It Cost to Sell a House in Michigan?

Most sellers focus on what their home will sell for. Fewer have a clear picture of what they'll actually walk away with. The gap between sale price and net proceeds is larger than most people expect — and understanding it in advance puts you in a much stronger position when it's time to make decisions.

Here's a realistic breakdown of what it costs to sell a home in Southeast Michigan, with a worked example on a $400,000 sale.

Agent Commission

Commission is typically the largest line item. Under rules that took effect in 2024, the buyer's agent compensation is now negotiated separately from the listing commission — it's no longer automatically bundled. In practice, here's how it plays out: listing agents in Southeast Michigan generally charge 2.5–3% of the sale price. Sellers may also choose to offer a buyer agent concession — typically 2–2.5% — as a strategic tool to attract financed buyers. If you offer nothing toward the buyer's agent, some buyers will factor that into their offer or pass entirely.

Michigan Transfer Taxes

Michigan has both a state and county real estate transfer tax, and both are paid by the seller. The state transfer tax is $3.75 per $500 of sale price. The county transfer tax is $1.10 per $1,000 in most Lower Peninsula counties. Together they run approximately 0.86% of the sale price.

Note: Michigan principal residence exemption (PRE) holders may qualify for an exemption from the state transfer tax if the property is their primary residence. Ask your title company to verify eligibility early — this can save a meaningful amount.

Title Insurance and Closing Fees

In Michigan, it's customary for the seller to pay for the owner's title insurance policy. This protects the buyer against any future title claims and is required by most lenders. On a $400,000 sale, the owner's title policy typically runs $800–$1,200 depending on the title company. Add a closing/settlement fee of $300–$500, and title-related costs total roughly $1,100–$1,700.

Repairs, Staging, and Pre-Market Prep

This line item is entirely within your control — and it's where sellers make their biggest mistakes in both directions. Some over-invest in renovations that won't be recovered in the sale price. Others under-invest and leave money on the table.

A realistic pre-market budget for a well-maintained home in Southeast Michigan is $1,500–$5,000. Homes that need significant catch-up work can run $10,000–$20,000+, but those investments should be evaluated carefully against the expected return.

Seller Concessions

In today's market, buyers frequently ask sellers to contribute toward closing costs — typically 1–3% of the purchase price. In a competitive multiple-offer situation, concessions may be zero. In a slower market or on a home that's been sitting, concessions are often part of the negotiation. Plan for the possibility even if you don't end up paying them.

The Full Picture: A $400,000 Sale

Total estimated selling costs: approximately $29,840 — or roughly 7.5% of the sale price before any seller concessions. That leaves a seller with a $400,000 sale walking away with approximately $370,000 before paying off their mortgage.

How to Protect Your Net

• •Get a net sheet before you list. Any agent should be able to produce one with your specific numbers.
• •Understand the transfer tax exemption if this is your primary residence.
• •Be surgical about pre-market repairs — fix what will come up in inspection, not what will make the home look renovated.
• •Price accurately from the start. Overpriced homes sit, and price reductions cost more than the initial discount would have.
• •In a competitive offer situation, push back on excessive concession requests before accepting.