1. Agent Commissions
The largest selling cost. Typically 5-6% of sale price, split between listing and buyer's agent. On a $200,000 Michigan home, that's $10,000-$12,000. Recent NAR settlement changes mean buyer's agent compensation is now negotiated separately — ask your agent about current practices.
2. Michigan Closing Costs for Sellers
Transfer taxes: Michigan charges $3.75 per $500 of sale price (seller pays). On a $200,000 sale: $1,500. County transfer tax: additional $1.10 per $1,000 in most counties. Title insurance: $800-$2,000. Attorney fees (optional but recommended): $500-$1,500. Prorated property taxes. Total typical seller closing costs: 1-3% of sale price.
3. Pre-Sale Repair and Staging Costs
Average Michigan home needs $8,000-$25,000 in pre-sale work to maximize list price. Common items: fresh paint ($2,000-$5,000), carpet replacement ($3,000-$8,000), kitchen updates ($3,000-$15,000), landscaping ($500-$3,000). Staging: $1,000-$3,000. These costs are avoided entirely in a cash sale.
4. Carrying Costs While Listed
Every month your home sits on market costs money: mortgage payment, property taxes (~$200-500/month), insurance (~$100-200/month), utilities (~$150-300/month), maintenance. Michigan's average days on market varies from 20 (Ann Arbor) to 45+ (Detroit). Budget $600-$1,200/month in carrying costs.
5. Cash Sale vs. Traditional Sale — Full Comparison
On a $180,000 Michigan home: Traditional (agent) → list at $185,000, minus 6% commission ($11,100), minus closing costs ($3,700), minus repairs ($12,000), minus 45 days carrying ($1,800) = $156,400 net. Cash buyer offer → $160,000, zero fees, zero repairs, 10-day close = $160,000 net. Cash buyer wins by $3,600 and closes 35 days faster.
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