When selling a home in Michigan, the sale price is not your final profit. Before you walk away with a check, you must cover seller closing costs, which typically range between 6% and 10% of the sale price.

Here is a quick breakdown of where that money goes:

1. Real Estate Commissions

Usually the largest expense, this covers the fees for both your listing agent and the buyer’s agent. It is deducted directly from the sale proceeds at closing.

2. Title & Transfer Fees

You typically pay for the Owner’s Title Insurance Policy and a settlement fee to the title company to ensure a legal transfer. Additionally, Michigan imposes state and county transfer taxes based on the sale price.

3. Taxes and Prorations

You are responsible for property taxes and HOA dues only up to the day of closing. Through a "proration," you will credit the buyer for the portion of taxes corresponding to the time you owned the home during the current billing cycle.

4. Buyer Concessions & Repairs

If you agreed to help the buyer with their closing costs or pay for repairs following the inspection, these amounts (including home warranties) are deducted from your net proceeds.

5. Mortgage Payoff

Your existing mortgage balance is paid off first. The title company wires the principal, accrued interest, and any payoffs directly to your lender.

Conclusion

To know your true bottom line, do not guess. Ask your real estate agent for a Seller Net Sheet. This document subtracts all these costs from your sale price upfront, ensuring there are no surprises at the closing table.