Your final utility bills should be prorated as of the date of sale. The best way to avoid paying any commission fees is to sell to an unrepresented buyer. Brokerage, By searching Northstar MLS listings you agree to the Northstar MLS End User License Agreement, Selling a house is time consuming and expensive — often much more than sellers might expect. If you don't offer a commission that is competitive compared to similar homes in your area, then your home could be shown less. Real estate laws, processes, and trends vary greatly across the country. "If your kitchen is a disaster, spending more money on a remodel to get it in solid condition will pay off in the end," said Mizes. convenience. Sellers are also typically required to pay for a title insurance policy for buyers, which protects their interest in the home if there are issues with a disputed title or outstanding liens. Once the deal closes, the buyer can personally oversee the project to their liking and you don't have to worry about repairs going over budget. However, there is a solid argument for offering a buyer's agent commission. Agent commission: The majority of your closing costs come from paying commission to real estate agents. You’ll want to check with your mortgage company to see if there is a prepayment penalty as well. For example, if you have a house that is selling for $100,000, the Owners Title policy will cost $700. How do the neighborhoods and nearby amenities compare? While homes are listed on the MLS, there's no independent Clever listing site. But be sure to shut off utilities as of the date you vacate so you can avoid unnecessary costs. There also may be a fee for the transfer of ownership. of buyers' closing costs. Real Estate Commissions The most significant fee you'll pay will probably be the real estate commission , anywhere from 5% to 6% of the sale price, although 6% is common. A survey (or an affidavit verifying a previous survey) proves exactly where the property lines are. Michigan Seller Closing Costs & Net Proceeds Calculator. Vetting buyers to ensure they're qualified, from a financial perspective. It’s rare that you receive the perfect offer and can close without making any concessions to the buyer. In a typical sale, the seller also agrees to a commission rate for the realtor who brings the buyer to the table, which runs between 2.4% to 2.8%. "Staging" your home so it looks its absolute best for showings can cost an average of about $1,200 as of 2018. But now that you know what awaits, if you're feeling confident about all the steps and possible challenges, you might be ready to sell without a realtor. For the seller, this cost comes out of the profit you’ll make on the home on closing. It will cost about $500. Selling a house For Sale by Owner (FSBO) in Michigan can save you 2.6% to 5.8% in realtor commissions. Analyze details When you’re thinking about selling, it’s easy to get excited looking at your Zestimate and seeing how much your home value has increased over the years, but it’s important to be prepared for the hidden, and sometimes overlooked, costs of selling a home. Preparing your home by making necessary repairs, cleaning, and staging your home. *These reviews are for Redfin's Seattle, WA office. For example, if you live in Grand Rapids and think your house is worth about $244,000, search Zillow for active listings that are about $50,000 more and less than that. Attorneys are required to oversee closing in these locations: Alabama, Connecticut, Delaware, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, West Virginia and Washington, D.C. If you had a pre-sale inspection, you'll want the results to compare to the buyer's inspection. Lower the asking price or provide a credit to the buyer. Negotiating the final price, contingencies, repair concessions, and other aspects of the purchase agreement. "But spending money on high-end features to take it from good to extravagant will be a waste.". The State of Michigan and the County in which the property is located charge a fee for conveyance of property. While this can cost $500-$5,000, an experienced lawyer can answer any questions you have along the way. This is often prepared by your escrow agent or title company. You'll need a good system for scheduling showings and saving buyers' and agents' contact information. Not only can it make your home stand out from others on the market, but it can increase a buyer’s confidence in your property. Calculate Michigan title insurance fees for buying, selling, and refinancing residential real estate. You can sometimes negotiate down your own agent’s commission, or consider using a discount agent, who offers limited services in exchange for a lower cut. The tax covers the cost of transferring tax and title from one person to the next. Homeowners insurance for vacant property: Did you know that your existing homeowners insurance policy may not cover your property when it’s vacant? If you've already paid your mortgage in full, you'll need documentation proving that. In Michigan, this will typically cost you a couple hundred dollars. The MLS is how real estate agents find homes for their clients, and typically a buyer's agent commission is included to incentivize these realtors to show the house to their clients. Clever’s Concierge Team can help you compare local agents and find the best expert for your search. Did you know that your existing homeowners insurance policy may not cover your property when it’s vacant? In most cases, you'll still need to offer a competitive buyer's agent commission, but you'll save on listing Little touches like new bath towels, a fresh doormat, flowers, and cookies can go a long way too. Transfer tax can range in price from a few hundred dollars to a few thousand. Real estate fees for sellers add up fast. Use comforting scents to your advantage so they feel at home the moment they walk through Selling without a real estate agent, known as listing For Sale By Owner (FSBO), is a viable option for experienced home sellers who are willing to put in the time and effort. If your home is going to be vacant for any period of time, it’s important to talk to your agent about adding a rider to cover that period. Transfer tax: Also known as a government transfer tax or title fee, this amount varies widely due to varying tax rates by state and the sale price of the home. On a home of median value, that equates to $3,348 to $5,022, but can help you close the deal sooner and for more money. Before your first open house or showing, consider hiring a house cleaner to do a deep clean. A notarized document that states you own the home, that there are no liens on the property, that you are not simultaneously selling the home to someone else, etc. According to data from ClosingCorp, the average closing cost in Michigan is $4,014 after taxes, or approximately 2.01% to 4.01% of the final home sale price. 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