What It Costs to Sell a House in Michigan
Before you list, it helps to know the real cost of selling a house in Michigan — commissions, the state transfer tax, title fees, and the documents you'll need. Here's a clear breakdown, plus how a cash sale can help you skip most of it.
What documents do I need to sell a house in Michigan?
Michigan asks most sellers to share a few key documents before the sale becomes final. The most important one is the Seller's Disclosure Statement. State law (MCL 565.957) requires it for most home sales, and you must give it to the buyer before they sign a binding purchase agreement. If the buyer doesn't get it in time, they may have the right to back out.
The Seller's Disclosure Statement
This form asks what you know about the home. It covers the roof, foundation, basement, plumbing, electrical, and heating systems. It also asks about the water supply, the sewer or septic, and any known problems or past damage. You answer based on what you actually know. If you truly don't know something, "unknown" is an acceptable answer. The goal is honesty, not perfection.
Lead paint and HOA documents
If your home was built before 1978, federal law also requires a lead-based paint disclosure. Many older Metro Detroit homes fall into this group. If a homeowners association governs your property, you'll need to provide the HOA documents and any rules or fees that come with them.
When the disclosure isn't required
Some sales are exempt from the Seller's Disclosure Statement. Common examples include transfers between spouses or close family, court-ordered sales, and many estate or probate transfers. Your title company can confirm which forms your specific sale needs.
How much does it cost to sell a house in Michigan?
Selling a house the traditional way comes with several costs. Most of them come out of your sale price at closing, so it helps to know them before you start.
Agent commissions
Commissions are usually the largest cost. They often run about 5–6% of the sale price. On a $200,000 home, that's roughly $10,000 to $12,000. On higher-priced suburban homes, the dollar amount climbs fast, even though the percentage stays the same.
The Michigan Real Estate Transfer Tax
Michigan charges a transfer tax on the sale, and the seller usually pays it. The state part is $7.50 per $1,000 of the sale price. The county part adds $1.10 per $1,000. Together that's $8.60 per $1,000, or about 0.86%. On a $200,000 sale, the transfer tax comes to about $1,720. The title company collects it at closing.
Title insurance, closing fees, and repairs
Sellers also typically pay for the owner's title insurance policy and the title company's closing fees. Together these often add a few hundred to a couple thousand dollars. On top of that, many buyers ask for repairs or a price credit after the inspection, especially on older homes. Add it all up, and selling the traditional way often costs about 7–9% of the sale price.
How to figure out your net proceeds
Net proceeds are the amount you actually walk away with after every cost is paid. The math is simple once you list everything out:
Net proceeds = sale price − mortgage payoff − commissions − transfer tax − title and closing fees − repairs or credits − prorated property taxes
Here's an example. Say your home sells for $200,000 and you still owe $90,000 on your mortgage. If you pay 5.5% in commissions ($11,000), about $1,720 in transfer tax, $1,500 in title and closing fees, and $3,000 in prorated property taxes, your estimated net proceeds would be around $92,780. Change any number and your result changes too. A cash sale removes the commission and repair lines, which can leave more in your pocket even when the headline price is different.
Will you owe taxes when you sell?
Many sellers owe no tax on a home sale. The federal home-sale exclusion lets you keep up to $250,000 in profit tax-free if you're single, or up to $500,000 if you're married. To qualify, the home must have been your main home for at least 2 of the last 5 years.
Profit above those limits can be taxed at the federal level. Michigan's income tax of 4.25% may also apply to the part of the gain that isn't excluded. Rental homes and inherited homes follow different rules, and an inherited home often gets a "stepped-up" value that lowers the taxable gain. Taxes depend on your own situation, so it's smart to talk with a tax professional before you sell.
Selling for Cash vs. Listing With an Agent
A traditional listing can work well for an updated home. But it comes with commissions, repairs, showings, and waiting. Here's how the two stack up.
| What matters to you | Selling to Sell Dave Your House | Traditional listing with an agent |
|---|---|---|
| Timeline to close | As little as 7 days | 60–90+ days (often longer) |
| Repairs & cleaning | None — we buy as-is | Repairs, staging, deep cleaning |
| Showings & open houses | None | Ongoing, on buyers' schedules |
| Agent commissions | $0 | Usually 5–6% of sale price |
| Closing costs | We cover standard costs | Often paid by the seller |
| Risk of the loan falling through | None — cash offer | Common — deals can fall apart over loans |
| Appraisal & inspection | No conditions | Can lower the price or end the deal |
| Certainty of sale | Guaranteed once accepted | Not sure until closing day |
Skip Most Selling Costs With a Cash Sale
If you'd rather avoid the commissions, repairs, and waiting, a cash sale is worth a look. As a local cash home buyer, we charge no agent commissions, you make no repairs, and we cover the standard closing costs. We buy houses as-is, so there are no inspection demands and no Seller's Disclosure back-and-forth that drags the deal out.
A cash sale makes the most sense when speed and certainty matter most. If you're relocating, settling an estate, behind on payments, or holding a home that needs a lot of work, a fair cash offer lets you skip the prep and choose your own closing date. Want to see the steps? See how selling your house for cash works, or read why homeowners sell to us. You can also see where we buy houses across Metro Detroit.
Cost to Sell a House in Michigan — Common Questions
What documents do I need to sell my house in Michigan?
Michigan asks most home sellers to fill out a Seller's Disclosure Statement before you sign a binding purchase agreement. This form comes from state law (MCL 565.957). It covers what you know about the roof, foundation, plumbing, electrical, heating, water, and sewer, plus any known problems. You can answer "unknown" if you truly don't know. If your home was built before 1978, federal law also requires a lead-based paint disclosure. If a homeowners association governs the property, you'll need to share the HOA documents too. A title company can tell you which forms fit your exact sale.
What is the Michigan Real Estate Transfer Tax?
It's a tax on the sale that the seller usually pays at closing. The state part is $7.50 for every $1,000 of the sale price. The county part adds $1.10 per $1,000. Together that's $8.60 per $1,000, or about 0.86% of the price. For example, on a $200,000 sale the transfer tax is about $1,720. The title company collects it at closing, so you don't mail it in yourself.
What are typical seller closing costs in Michigan?
On a traditional sale, the biggest cost is usually the agent commission, which often runs about 5–6% of the sale price. After that, sellers commonly pay the Michigan transfer tax (about 0.86%), the owner's title insurance policy, title company closing fees, and any prorated property taxes. Repairs or buyer credits can add more. Add it all up and a typical seller often pays roughly 7–9% of the sale price to sell the traditional way.
How do I calculate my net proceeds?
Net proceeds are what you actually keep after every cost comes out. Use this simple formula: sale price − mortgage payoff − agent commissions − transfer tax − title and closing fees − repairs or buyer credits − prorated property taxes = net proceeds. Start with the price, subtract what you still owe on the loan, then subtract each selling cost. The number left over is your estimated cash at closing.
Will I owe taxes when I sell my home in Michigan?
Many home sellers owe nothing. The federal home-sale exclusion lets you keep up to $250,000 in profit tax-free if you're single, or up to $500,000 if you're married, as long as the home was your main home for 2 of the last 5 years. Profit above those limits can be taxed at the federal level, and Michigan's income tax of 4.25% may also apply to the gain. Rental and inherited properties follow different rules. Always check with a tax professional about your own situation.
Does Michigan require an attorney at closing?
No. Michigan does not require you to hire an attorney to sell your home. A licensed title company handles the title search, paperwork, and the closing itself. You're welcome to hire an attorney if you'd like extra help, especially with an estate, a trust, or a tricky title — but it isn't required by law.
How can I sell my Michigan house without these costs?
Selling to a cash home buyer like us removes most of them. We charge no agent commissions, you make no repairs, and we cover the standard closing costs. We buy houses as-is across Metro Detroit and many Michigan counties. You skip the showings and the Seller's Disclosure back-and-forth that can stall a traditional sale. You get a fair cash offer and pick the closing date that works for you.
See Your Cash Offer — No Fees, No Repairs
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