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Navigating Closing Costs in Michigan: Understanding the Expenses Involved in Selling Your Home

Selling your house in Michigan is an exciting but costly process. One important thing to understand is the costs of selling your home. These are the fees and charges you'll need to pay when finalizing the sale of your home. In this blog post, we'll explain what closing costs are, break down the different expenses involved, and explain who is responsible for paying them.


Understanding Closing Costs:

Closing costs are the fees you have to pay when selling your home. They cover various services and expenses that ensure the transfer of property ownership goes smoothly. It's essential to know that some closing costs are usually paid by the buyer, while others are the responsibility of the seller. Captain Buys Homes in Grand Rapids and West Michigan by paying all of these closing costs when we offer on your house. This saves you potentially thousands of dollars in the transaction.




Elements Included in Closing Costs:

  1. Title Search and Insurance: A title search makes sure you are the legal owner of the property and checks for any outstanding debts. Title insurance protects both the buyer and the lender if any future problems arise. In Michigan, the average cost of a title search is around $200 to $300, and title insurance can be 0.5% to 1% of the property's price. (a)

  2. Attorney or Escrow Agent Fees: An attorney or escrow agent helps with the legal documents and paperwork needed for the sale. Their fees can range from $500 to $1,500, depending on how complex the transaction is. (b)

  3. Appraisal and Inspection Fees: Buyers often request an appraisal to know the value of the property and an inspection to check its condition. An appraisal usually costs between $300 and $500, while an inspection can be around $300 to $600. (b)

  4. Recording and Filing Fees: These costs involve registering the sale and transferring property documents with the government. In Michigan, recording fees are typically between $30 and $60. (b)

  5. Transfer Taxes: Transfer taxes are charges imposed by the government when property ownership changes hands. In Michigan, the transfer tax is usually $8.60 for every $1,000 of the property's sale price. (b)

  6. Realtor or Agent Commissions: In many transactions a real estate agent or broker is involved to assist with the sale. This costs are typically 5-6% of the total sale price of the home. (c)


Get a cash offer for a house in Grand Rapids Michigan with Captain Buys Homes.
Avoid paying closing costs Michigan with Captain Buys Homes

Responsibilities for Closing Costs:

Generally, certain closing costs are the buyer's responsibility, while others are the seller's responsibility. However, this can be negotiated between both parties. Here's a simple breakdown for Michigan:

Typical Buyer's Closing Costs:

  • Title insurance for the lender

  • Appraisal and inspection fees

  • Attorney or escrow agent fees (if applicable)

  • Recording and filing fees (if applicable)

  • Transfer taxes

Typical Seller's Closing Costs:

  • Title search and title insurance for the buyer

  • Real estate agent commissions

  • Mortgage payoff and prepayment penalties (if applicable)

  • Recording and filing fees (if applicable)

  • Transfer taxes

When selling your house in Michigan, it's important to consider the closing costs involved. These are the fees and charges you'll need to pay during the final stages of the sale. Understanding the different elements and expenses associated with closing costs, as well as who is responsible for paying them, will help you navigate the process more confidently. Remember you can avoid paying these costs with Captain's CASH offer for your house


Sources

a. https://www.rocketmortgage.com/learn/title-insurance-cost

b. https://www.rocketmortgage.com/learn/closing-costs

c.https://www.redfin.com/guides/how-much-is-real-estate-agent-commission-buyer-seller



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