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Transaction Fees

What are some of the fees associated with a real estate transaction? In the state of Michigan, no two deals are the same. Here are some fees a Seller should keep in mind when it gets closer to closing time:

#1. Commission

Commission is about the same across the board. The commission is always paid by the seller. In the state of Michigan, we charge six percent which is very standard. The agents then split that six percent 50-50 with an outside broker so that’s the buyers or the buyer agent coming in. They’re getting paid from the seller and that’s standard in the state of Michigan. 

But if you wanted to have a number in your mind when you’re calculating out the expenses to sell a home, I would say come up with about eight and a half percent. The reason that I say that is because you have six percent commission and then you have about another two and a half percent commission with your transfer tax and and your title insurance which is also paid for by the seller.

#2. Transfer Taxes

There are also transfer taxes in the state of Michigan. You have to pay the state when you transfer a property for one owner to the next and so it’s .0086 cents times the sale price. 

#3. Title Insurance 

Title Insurance just means that you’re conveying clear title over to that new owner so we want to make sure that you have a good idea of those fees going into the thought process of selling. 

If you have any questions regarding the processes of selling a home, call Home Seekers today!

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