How Much Does It Cost To Sell A House In Michigan

1. Real Estate Agent Commission Fees

One of the largest expenses when selling a home is the commission paid to real estate agents. In Michigan, the standard commission rate is usually around 5-6% of the home’s sale price. This fee is typically split between the seller’s agent and the buyer’s agent.

For example, if your home sells for $300,000 and the commission rate is 6%, you’ll be paying $18,000 in agent fees. While agents handle many aspects of the sale, such as marketing, showings, and negotiations, the cost can be significant.

2. Closing Costs

In addition to agent fees, sellers in Michigan are responsible for covering various closing costs. These expenses usually amount to 1-3% of the home’s sale price and can include:

• Title insurance: Protects against any legal claims on the property.
• Recording fees: Charged by the local government to officially record the sale.
• Attorney fees: Legal fees for reviewing contracts and ensuring a smooth transaction.
• Transfer taxes: Michigan imposes a state transfer tax of $3.75 per $500 of the sale price and a county transfer tax of $0.55 per $500.

For a home sold for $300,000, closing costs could range from $3,000 to $9,000, depending on the specific charges involved.

3. Home Repairs and Improvements

Before listing your home on the market, you’ll likely need to make repairs or improvements to attract buyers and increase the sale price. Some common repairs include:

• Painting: Freshening up the interior or exterior with new paint.
• Roof repairs: Fixing or replacing an old or damaged roof.
• Plumbing or electrical updates: Addressing outdated systems to meet current standards.
• Landscaping: Enhancing curb appeal with updated landscaping.

While some repairs are minor, others can be costly. Sellers can spend anywhere from a few hundred dollars on small repairs to $10,000 or more on major renovations, especially if the home requires significant work to appeal to buyers.

4. Staging and Photography

To sell your house quickly and for top dollar, many real estate agents recommend staging your home. Professional staging involves furnishing and decorating the home to make it more attractive to buyers. Staging can cost between $500 and $2,500, depending on the size of your home and the length of time it remains on the market.

In addition, professional photography is often necessary to showcase your home online. High-quality photos help make your listing stand out but can add an extra $200 to $500 to your selling costs.

5. Holding Costs

The longer your home sits on the market, the more you’ll pay in ongoing expenses. These holding costs can include:

• Mortgage payments: If you’re still paying off your mortgage, you’ll need to continue making monthly payments until the home is sold.
• Property taxes: Depending on your home’s value and location, property taxes can be significant in Michigan.
• Utilities: Even if the home is vacant, you’ll need to keep the lights, heat, and water on during showings and inspections.
• Homeowners insurance: You’ll need to maintain your insurance policy until the sale is finalized.

If your home remains unsold for several months, these holding costs can add up to thousands of dollars.

6. Negotiating Repairs or Concessions

After a buyer conducts a home inspection, they may request repairs or negotiate for concessions. For example, if the inspection reveals issues like foundation cracks, plumbing problems, or mold, the buyer may ask for a price reduction or request that you cover the repair costs. Sellers in Michigan can often find themselves spending an additional $1,000 to $5,000 on negotiated repairs or price reductions.