How Much Will You Actually Net When Selling Your Ann Arbor (or anywhere in Michigan) Home?

If you're planning to sell your home in Ann Arbor, Brighton, Ypsilanti or anywhere in the great state of Michigan, you’re probably wondering: How much money will I actually walk away with? From Realtor commissions to closing costs, title insurance, and transfer taxes, selling a home comes with expenses that impact your final profit.

Below, we break down the true cost of selling a home in Michigan and provide detailed net proceeds calculations for common home price points.

Understanding Closing Costs When Selling

Selling a home in Michigan means you’ll have to factor in closing costs, state and county transfer taxes, title insurance, and Realtor commissions (which are fully negotiable). Here's a breakdown of what to expect:

1. Seller Closing Costs (Approximately 4.25%)

These costs, separate from Realtor commissions, typically include:

• Title Service Fees: $300

• Owner’s Title Insurance: Varies by sale price (see calculations below)

• Michigan Real Estate Transfer Tax:

  • County Transfer Tax: $1.10 per $1,000 of the sale price

  • State Transfer Tax: $7.50 per $1,000 of the sale price

• Recording Fees: $50

• Prorated Property Taxes: Varies based on the tax rate and closing date

2. Additional Seller Costs to Consider

• Home Warranty: $400 - $650 (optional but may attract buyers)

• Attorney Fees (if used): ~$266 per hour

• Buyer Concessions: Sellers sometimes offer concessions to assist with closing costs, repairs, etc.

3. Realtor Commissions (5%, Fully Negotiable)

Realtor commissions are not fixed and are fully negotiable. While many sellers in Ann Arbor and Washtenaw County still pay commissions, you can shop around for the best rate or explore to save on costs.

How Much Will I Make When Selling My Home?

Below are detailed net proceeds estimates for various home prices after factoring in closing costs, Realtor commissions, and taxes.

Selling an Ann Arbor Home (not likely at this price) for $200,000

• Total Transfer Taxes: $1,720

• Title Insurance: $1,000

• Title Service Fees: $300

• Recording Fees: $50

• Estimated Seller Closing Costs (4.25%): $8,500

• Realtor Commissions (5%, Fully Negotiable): $10,000

💰 Estimated Net Proceeds (Fully Negotiable):
$200,000 - ($1,720 + $1,000 + $300 + $50 + $8,500 + $10,000) = $178,430

Selling a stellar Brighton Home for $300,000

• Total Transfer Taxes: $2,580

• Title Insurance: $1,225

• Title Service Fees: $300

• Recording Fees: $50

• Estimated Seller Closing Costs (4.25%): $12,750

• Realtor Commissions (5%, Fully Negotiable): $15,000

💰 Estimated Net Proceeds (Fully Negotiable):
$300,000 - ($2,580 + $1,225 + $300 + $50 + $12,750 + $15,000) = $268,095

Selling an Ypsilanti home for $400,000

• Total Transfer Taxes: $3,440

• Title Insurance: $1,350

• Title Service Fees: $300

• Recording Fees: $50

• Estimated Seller Closing Costs (4.25%): $17,000

• Realtor Commissions (5%, Fully Negotiable): $20,000

💰 Estimated Net Proceeds (Fully Negotiable):
$400,000 - ($3,440 + $1,350 + $300 + $50 + $17,000 + $20,000) = $357,860

Selling a Canton home for $500,000

• Total Transfer Taxes: $4,300

• Title Insurance: $1,625

• Title Service Fees: $300

• Recording Fees: $50

• Estimated Seller Closing Costs (4.25%): $21,250

• Realtor Commissions (5%, Fully Negotiable): $25,000

💰 Estimated Net Proceeds (Fully Negotiable):
$500,000 - ($4,300 + $1,625 + $300 + $50 + $21,250 + $25,000) = $447,475

How to Sell Your Michigan Home for the Most Money

• Negotiate Commissions: Many Realtors will adjust their commission rates based on the level of service they provide.

• Compare Service Providers: Title companies, attorneys, and closing-related services can vary in cost—shopping around could save you thousands.

• Minimize Buyer Incentives: While offering closing cost assistance to buyers can help secure a deal, only offer what’s necessary to remain competitive.

• Work with an Experienced Local Realtor: A top Ann Arbor real estate agent can help market your home, attract buyers, and negotiate better offers.

Ready to Sell Your Home? Let’s Talk!

Selling your home is one of the biggest financial decisions you'll make. Whether you're relocating, downsizing, or upgrading, understanding the true cost of selling can help you make informed decisions.

If you’re thinking about selling your home in Michigan, I’d love to help you maximize your profit. Contact me today for a personalized home-selling strategy!