“What’s it really going to cost to sell my home?”

It’s one of the 3 questions every seller has, yet I find that for whatever reason some agents aren’t providing the answer.

Sure, the amount of commission gets discussed. But that’s about it.

I recently listed a home that had been on the market for two years with 2 other agents, and neither of them had ever given the seller any indication of how much they could expect to walk away from the closing table with.

When you’re selling your home in southeast Michigan, there are two costs that you’ll always pay even if you don’t hire an agent.  And if you do, you’ll also pay a 3rd cost: the commission.

  • Transfer Taxes
    • When a private homeowner sells a property, the state and your local county get a little piece. For every $1000 of your home’s sale price, you’ll pay $1.10 to the State of Michigan and $7.50 to the county where the property is located.
  • Title Insurance
    • Owner’s Policy premiums from licensed companies are filed with the Michigan Department of Insurance & Financial Services, meaning title insurance rates are regulated and really non-negotiable. However, in addition to the cost of a basic owner’s policy there may be policy riders and there are often other charges and fees that vary from one title insurance agency to another. It’s important to understand those charges and make sure they’re reasonable.

So what does that mean to you in dollars and cents?

Settlement costs are based on the final sale price of the home, so I’m going to give you an easy example here for illustrative purposes.

Sale Price:                           $ 250,000.00

Transfer Taxes:                           2,150.00

Title Insurance:                            1,241.75

Gross Proceeds:                  $ 246,608.25

From the gross proceeds above you’d deduct any mortgage payoffs, home equity loans or home improvement loans, any balances owing for special assessments, amounts due for any other liens like delinquent water bills or unpaid taxes, and of course, any commission.  You’ll also be charged for some other minor miscellaneous items like postage or overnight fees, recording fees, etc. that normally total less than $150.

Now, I haven’t factored in any costs to get your home ready for sale. And I’m not considering any costs you may bear as a result of the actual negotiations like post-closing occupancy charges, repair costs, seller concessions, etc.

The point of this post is to understand the numbers behind your bottom line.  If you’d like us to provide you with the numbers for your sale, send us a note.