Are you considering selling your Michigan home in the near future? If you are, then there are some things you will want to know. While there is a lot goes into the home selling process, one of the biggest factors is closing costs.
While the buyer may take on some of this burden, you the seller will pay for your share. Below we are going to break down some of the most common types of closing costs you may have to pay. Keep in mind that other closing costs may apply depending on your situation.
When selling a home in Michigan you may be advised to hire an attorney to help with closing.
While you are not required by the state to have an attorney, it may be in your best interest depending on your specific circumstances.
He or she will handle all the legal aspects of the sale. They will draw up all the necessary paperwork in order to transfer the title into the new owner’s hands.
This will require you to pay attorney fees for all the work that they will do on your behalf.
Another closing cost that comes with selling a home in Michigan is escrow fees. When selling a home, a third party is required to handle the transfer of money. Once the buyer’s mortgage company has paid out, the money will be placed in escrow until all legal matters are taken care of.
Having the money in escrow will give both the buyer and the seller security and peace of mind. Escrow companies charge a fee for their services. In some cases, the buyer and the seller will split these fees.
A transfer tax is assessed when selling your home in Michigan. This tax is required by the state government and can vary from city to city.
The tax covers the cost of transferring tax and title from one person to the next. This closing cost is normally paid by the seller.
Transfer tax can range in price from a few hundred dollars to a few thousand. So keep this in mind when selling your home.
Before you can complete the sale of your home, it will need to be inspected for termites. Having termites is a serious problem that can undermine the value of your home.
Before you can sell your home a professional termite company will need to inspect it. If no termites are found you will be given a clean bill of health.
A termite letter will be given to you, and you will need to supply it to the buyer. This cost is much lower than some of the closing cost on this list, however, it may set you back a few hundred dollars.
Now that you have had the home inspected for pests, it is time to have it inspected for value. Most if not all home loan companies require the home to be inspected before they sign off.
This means that they will not lend any money out until they know what they are investing in is worth it. Most of the time the buyer will pay for the home to be inspected.
However, the seller may want to foot the bill for the inspection in order to attract buyers. This is completely up to you and the buyer.
If you have any outstanding HOA fees those will need to be paid during closing. Not everyone is part of an HOA, but if you are then expecting to pay out some money.
These fees can be small or quite large, depending on your HOA agreement. The buyer will also have to keep in mind that he or she will have to pay HOA fees after they have taken possession of the property.
Outstanding Property Taxes
If you own any outstanding property taxes they will have to be paid before you can sell your home. Remember that this is an important matter that you will need to clear up before selling your home.
If a buyer finds out that the property has a tax burden on it, they may back out of the deal. So make sure you pay your taxes as soon as possible, in order to avoid any issues.
While agent commissions may hold the largest number on a closing costs worksheet, it may also be the most beneficial. Traditionally, real estate agents get paid at the end of a sale.
Most real estate agents charge 6% of the total value of the home, with that percentage being split up between the buyer’s agent and the listing agent.
That means if your home has sold for $500,000, you will pay $30,000 for the sale of your home. While that may seem like a huge chunk of money, it is always negotiable and may be well worth it when you have successfully sold your home.
While not part of the closing costs, sellers should keep in mind the cost of moving. If you are going to be moving to a new location that is far from your current home, you may need to hire a moving company.
Moving companies will not only help you get your belongings into your new home they can take a lot of stress off of you.
Prices can range from a few hundred dollars to a few thousand. You can cut down on this cost by packing up your own items. When hiring a moving company make sure to always get a least three quotes. This will allow you to get the best service possible.
As you can see there are a lot of closing costs associated with selling a home in Michigan. So make sure you keep that in mind before you place your home on the market. While these fees can seem high, it is all part of the process of selling your home.
Contact The Norber Real Estate Group
The best source of information about local communities and real estate topics is your real estate agent. Give Joshua Norber of the Norber Real Estate Group a call today at 248-785-3737 to learn more about the area, discuss selling your house, or tour available homes for sale.