TL;DR
Michigan closing costs typically run 2–5% of purchase price for buyers — about $5,000–$12,500 on a $250,000 home. For sellers, expect 6–8% including the agent commission (typically 5–6%) plus transfer tax and prorations. The biggest line items: lender fees, title insurance, prepaid taxes/insurance escrow, and Michigan’s state transfer tax ($7.50 per $1,000 paid by the seller). Here’s the full breakdown for 2026.
Buyer Closing Costs
| Line Item | Typical Cost |
|---|---|
| Loan origination fee | 0–1% of loan |
| Appraisal | $550–$750 |
| Credit report | $50–$100 |
| Lender’s title insurance | $400–$800 |
| Owner’s title insurance (paid by seller in Michigan) | N/A to buyer |
| Inspection | $350–$550 |
| Recording fees | $30–$100 |
| Prepaid property taxes (escrow) | $1,000–$4,000 |
| Prepaid homeowners insurance | $800–$1,500 |
| Prepaid mortgage interest | $200–$800 |
| FHA upfront MIP (FHA only) | 1.75% of loan |
| VA funding fee (VA only) | 1.25–3.3% of loan |
Seller Closing Costs
| Line Item | Typical Cost |
|---|---|
| Real estate commission | 5–6% of price |
| Michigan state transfer tax | $7.50 per $1,000 |
| County transfer tax | $1.10 per $1,000 |
| Owner’s title insurance (Michigan custom) | $500–$2,000 |
| Title search | $150–$300 |
| Property tax prorations | Varies |
| Attorney/closing fee | $300–$600 |
Who Pays What in Michigan?
By Michigan custom (not law), here’s the typical split:
- Seller pays: Real estate commissions, owner’s title insurance, transfer taxes, title search, document prep
- Buyer pays: Lender’s title insurance, appraisal, inspection, loan origination, prepaid taxes/insurance escrow, credit report
- Split (or negotiable): Closing/attorney fees
Frequently Asked Questions
How much are closing costs in Michigan?
Buyer closing costs in Michigan typically run 2–5% of purchase price. Seller closing costs run 6–8% including agent commission.
Who pays closing costs in Michigan, buyer or seller?
Both. By Michigan custom, sellers pay commissions, transfer taxes, and owner’s title insurance. Buyers pay lender fees, appraisal, inspection, and prepaid escrow items.
Can the seller pay the buyer’s closing costs?
Yes — this is called “seller-paid closing costs” or “seller concessions” and is negotiated in the purchase agreement. Most loan programs limit concessions to 3–6% of purchase price.
What is Michigan’s state transfer tax?
Michigan charges a state transfer tax of $7.50 per $1,000 of sale price (0.75%), plus a county tax of $1.10 per $1,000. Combined, that’s $8.60 per $1,000, or $2,150 on a $250,000 home. Paid by the seller.
Are closing costs negotiable?
Some are. Lender fees can be shopped between lenders, and seller-paid concessions can offset buyer costs. Transfer taxes and recording fees are not negotiable.
Can I roll closing costs into my mortgage?
Not directly into a purchase loan, but seller-paid concessions can effectively do this (seller credits the buyer, buyer raises offer accordingly). VA, FHA, and conventional all allow this within limits.
Want a Net-Sheet Estimate?
We’ll give you a line-item estimate of your buyer or seller closing costs for any Downriver property. Fill out our contact form or text 734-977-1405.
Chris Bujaki with The Saward Team, brokered by eXp Realty