When selling your home in Ann Arbor, being prepared for closing costs is essential for a smooth transaction. The largest expense is often the real estate agent commission, which typically ranges from 5% to 6% of the sale price. For example, if your home sells for around $425,000, you can expect to pay roughly $21,250 to $25,500 in commissions—usually split between the seller’s and buyer’s agents.
Another expense to consider is the transfer tax. In Michigan, this is generally set at about $1.50 per $500 of the sale price. On a $425,000 home, that amounts to approximately $1,275. Additionally, sellers often incur title insurance, escrow fees, and document fees, which together can add another $1,000 to $2,000 to your closing costs.
Don’t overlook potential repair costs or concessions that might arise from home inspections. It’s wise to budget an extra 1% to 2% of the sale price—around $4,250 to $8,500 on a $425,000 home—for any agreed-upon fixes or credits to the buyer. If you choose to work with an attorney during the sale, legal fees can range from $500 to $1,000, depending on the complexity of your transaction.
There are also prorated expenses to account for, such as property taxes, homeowners association fees, or utility bills. Many sellers find it helpful to set aside an overall contingency of about 2% to 3% of the sale price to cover all these miscellaneous costs. In the example of a $425,000 home, this would be an additional $8,500 to $12,750.
By understanding these typical closing costs—agent commissions, transfer taxes, repair expenses, and other fees—you can better prepare financially for selling your Ann Arbor home and avoid unexpected surprises at closing.