Average closing costs in Michigan

When you buy a house, you need to pay closing costs to cover services related to funding your loan and transferring legal ownership of the property to you. How much are closing costs in Michigan? They're lower than the national average, though how much you'll need to spend will vary depending on the home you're buying and its location.

How much are closing costs in Michigan on average?

Closing costs in Michigan averaged $4,138, including recording fees and taxes, according to 2025 data from LodeStar Software Solutions. That's 23.5% lower than the national average of $5,410.

Without recording and taxes, average Michigan closing costs are $3,603, which is 22.6% less than the national average of $4,661.

Closing costs can vary significantly depending on location, home price, and other factors.

The median home price in Michigan in 2025 was $382,211, according to LodeStar. That's 12.7% less than the national median sale price of $438,236.

The average closing cost percentage in Michigan is about 1.08% of the home’s sale price, including recording fees and taxes, which is slightly higher than the national average of 1.06%. Without recording and taxes, the national average is 0.86%.

Closing costs can vary significantly depending on location, home price, and other factors. Home prices, your down payment, and mortgage rates in Michigan all have an effect how much you'll pay for a home.

Like some other states, Michigan has some unique characteristics that affect its closing costs. For example, the state has a mandatory transfer tax of $3.75 per $500 of the property’s value. So, if you buy a home worth $300,000, your transfer tax will be $2,250.

Michigan also allows counties to levy their own transfer taxes, with a typical rate of $0.55 per $500 of the property’s value.

Closing costs overview

Closing costs are a necessary part of buying a home. They’re required to compensate your lender, the title company, local government agencies, and other parties for processing your new loan and transferring ownership of the house to you.

Here are some of the most common closing costs you can expect to pay when you buy a home in Florida:

• Appraisal fee. An appraisal is a professional assessment of the home's fair market value. Lenders require appraisals on all home purchases to make sure the purchase price and loan amount align with the property's actual value.
• Attorney fees. Some states require real estate attorneys to oversee real estate transactions. Michigan is not one of them, but you can hire one on your own to represent you and review legal documents on your behalf.
• Credit report fees. Credit report fees cover your lender’s cost of checking your credit report to determine your creditworthiness and eligibility for a loan.
• Recording fees. Your local government may charge a fee to change the property deed registration to your name.
• Inspection fee. A home inspection is when a professional evaluates the condition of a home, including its structure, electrical systems, plumbing, and other components. The inspection isn't required, but it helps you know the condition of the home you're buying.
• Origination fee. Some lenders charge mortgage origination fees, usually 1% or less of the loan amount, which covers their underwriting costs.
• Prepaid costs. Your closing costs may include some prepaid expenses, such as the first year of your homeowners insurance and property taxes. The average property tax rate in Michigan is 1.15%.
• Real estate agent commissions. It was previously the case that sellers paid the commissions for both the buyer’s and the seller’s agents. Under a rule change in 2024, buyers may now be responsible for their own agent's commission, although who pays this fee is negotiable. Real estate commissions in Michigan average 5.73%, which is usually split between the buyer's and seller's agents.
• Title insurance: When you buy a home, you typically must pay a title company to conduct a title search on the property to ensure it's free from any liens or other encumbrances.

Calculating closing costs

Closing costs typically total 3% - 6% of your loan amount. The amount you're borrowing and the location in Michigan where you're buying your home will affect the amount you pay.

Your lender will provide you with a list of expected closing costs in the Loan Estimate, which it will deliver within 3 business days of receiving your loan application. It will also tell you which costs you can shop for on your own, allowing you to find the best deal. The final estimate will be included in the Closing Disclosure, which your lender will provide at least 3 business days before closing. This will tell you how much cash to close you need.

Who pays closing costs in Michigan?

Both buyers and sellers are typically responsible for some closing costs, but for different reasons. For example, many of the buyer’s closing costs are for the loan, while the seller’s closing costs include taxes and some other fees.

Usual costs for sellers

While their costs may vary from one real estate transaction to the next or differ depending on where you live, these are some costs you can expect:

• Real estate agent commissions
• State and county transfer tax
• Title insurance (owner’s policy)
• Deed preparation and recording fees
• Outstanding liens or mortgages
• Prorated property taxes and HOA fees

In some cases, sellers also agree to cover some of the buyer's closing costs through seller concessions. This is more common in buyer’s markets, where sellers want to attract buyers.

Usual costs for buyers

Typical closing costs buyers pay in Michigan include:

• Appraisal fee
• Attorney fees
• Credit report fee
• Government recording fee
• Inspection fee
• Origination fee
• Prepaid costs
• Real estate commissions
• Title insurance

How can you save on closing costs in Michigan?

You can save on closing costs by asking for seller concessions, negotiating with your lender or other service providers, or shopping around for services like home inspections. You can also look into financial assistance programs in Michigan.

The bottom line: Closing costs in Michigan vary from sale to sale

Buying a home comes with plenty of up-front costs, from your down payment to the furnishings for your new home. Closing costs are among the most significant expenses you'll need to factor into your budget. If you're preparing to buy a home, it's essential to be prepared for everything, from closing costs to mortgage preapproval.

If you are ready to move forward with a home purchase in Michigan, apply for a loan with Rocket Mortgage® today.