Guide + calculator
Michigan closing costs calculator
National "2–5% of purchase price" advice hides what you'll really sign at a Michigan closing table. Here is the line-by-line picture for a typical $285,000 purchase.
Buyer's side (typical)
| Line item | Typical Michigan cost | Notes |
|---|---|---|
| Lender origination | $1,200–$1,800 | 0.5–1% of loan; some lenders charge flat fees |
| Appraisal | $500–$700 | Higher in the U.P. and rural counties |
| Lender's title insurance | $700–$1,100 | Priced by loan amount, regulated rates |
| Title/closing fee | $350–$600 | Split with seller at most title companies |
| Recording fees | $30–$60 | Per document, set by county register of deeds |
| Prepaid taxes & insurance escrow | $2,000–$4,500 | The big variable — depends on county millage and closing month |
| Survey (optional) | $0–$400 | Often skipped in platted subdivisions |
Seller's side
| Line item | Cost on $285,000 sale | Notes |
|---|---|---|
| State transfer tax | $2,137.50 | $7.50 per $1,000 (MCL 207.526) |
| County transfer tax | $313.50 | $1.10 per $1,000, all 83 counties |
| Owner's title policy | $1,100–$1,600 | Seller pays by Michigan custom |
| Commission | negotiable | Fully negotiable since the 2024 NAR settlement |
The rule of thumb that actually works
Skip the vague national percentages and use the two Michigan shortcuts that hold up at the closing table.
- Buyers: 2.5% of the price, plus your escrow prepaids.
- Sellers: $8.60 per $1,000 in transfer tax, plus title.
Run your payment first in the payment calculator, then add these one-time costs to see total cash to close.
Frequently asked questions
How much are closing costs in Michigan?
Budget 2–4% of the purchase price for buyers, so roughly $5,700–$11,400 on Michigan's ~$285,000 median home. Sellers pay more — the state and county transfer tax alone is $8.60 per $1,000 of price ($2,451 on a median sale), and by custom the seller usually covers it.
Who pays transfer tax in Michigan — buyer or seller?
By statute and custom the seller pays Michigan's transfer tax: $7.50 per $1,000 to the state plus $1.10 per $1,000 to the county. Everything in real estate is negotiable, but a buyer-pays arrangement is unusual outside of REO and land contract deals.
Can closing costs be rolled into the loan in Michigan?
On a purchase, mostly no — but seller concessions (up to 3% conventional with less than 10% down, 6% FHA) and lender credits in exchange for a slightly higher rate achieve the same effect. On a refinance, rolling costs into the balance is routine.