Most sellers budget for the commission and get surprised by everything else. We buy and sell houses in Michigan every month, so here is the complete cost list we use ourselves, with 2026 numbers.
The Big One: Commission
Even after the 2024 NAR settlement changed how buyer agent compensation is negotiated, most Michigan listings still settle in the 5 to 6 percent range all in. On a $250,000 sale that is $12,500 to $15,000. Some sellers now negotiate lower listing fees and let the buyer side float, but the budget number to start with is still 5 to 6 percent.
Michigan Transfer Tax
Michigan charges a state transfer tax of $7.50 per $1,000 of sale price plus a county transfer tax of $1.10 per $1,000 in most counties, $8.60 per $1,000 combined. On that same $250,000 sale, the seller pays $2,150 at closing. This one surprises almost everyone because nobody mentions it until the closing statement.
Title Insurance and Closing Fees
Sellers customarily pay for the owner’s title insurance policy in Michigan, which runs roughly $1,000 to $2,000 on a typical sale, plus settlement fees of a few hundred dollars. Add the title company’s closing fee and document charges and this bucket lands around $1,500 to $2,500.
Concessions and Inspection Credits
This is the silent killer. National data consistently shows a large share of sales include seller concessions, and the inspection negotiation is where list prices quietly shrink. A buyer who finds a tired roof or an old furnace asks for a credit, and with a mortgage on the line, sellers usually give it. Budget 1 to 3 percent, more if the house has known issues.
Carrying Costs While You Wait
Taxes, insurance, utilities, and the mortgage do not pause during the sale. A Michigan house carrying $1,800 a month that takes 90 days from listing to closing costs $5,400 just for the time. Vacant houses cost more, insurers charge premiums for vacancy and Michigan winters punish empty homes.
The Honest Total
On a $250,000 conventional sale: commission $13,750, transfer tax $2,150, title and closing $2,000, concessions $5,000, carrying costs $5,400. That is $28,300, about 11 percent, before any repairs or updates to get the house market ready. This is exactly why we tell sellers to compare a cash offer against the real net of a listing, not against the list price. Run your own numbers, or ask us to run them with you through our offer form. More on how we calculate offers on our how we buy houses page.