If you’re thinking about a cash home sale in Michigan, you’re probably wondering who pays closing costs.
Even when you sell your house for cash, you’ll still see some closing items on the settlement statement. The good news is that cash sales usually keep the list shorter and the process simpler than a traditional sale with a lender in the middle.
Let’s break it down, so you know what to expect before you sign anything.
What Are Closing Costs When You Sell In Michigan?
Closing costs are the expenses tied to transferring the home from you to the new owner. Some costs show up in almost every Michigan sale. Others depend on how the deal is structured and who covers what costs.
In a traditional sale, the buyer often has a longer list because lenders require appraisals, loan fees, and lender-specific steps. In a cash sale, you usually skip most of the lender-related items.
Who Pays Closing Costs In A Michigan Cash Sale?
It depends on the agreement. Many closing costs are negotiable in Michigan, and they should be spelled out clearly in writing before closing.
That said, there are some common patterns in Michigan cash deals.
Costs You Often See Sellers Cover
1) Michigan Real Estate Transfer Tax
Michigan charges a transfer tax when real estate changes hands. In many Michigan transactions, sellers commonly pay this transfer tax, though the contract can shift it if both sides agree.
2) Your Mortgage Payoff And Any Recorded Liens
If you still owe on the home, closing will pay it off so the title can transfer cleanly. The payoff comes out of your sale proceeds.
3) Some Title-Related Items
Title insurance is common in Michigan, but either the seller or the buyer can pay for an owner’s policy depending on what you agree to.
Costs Cash Buyers Often Cover (Or That May Be Reduced In Cash Sales)
1) Lender-Related Costs
When there is no mortgage, you typically skip lender fees and lender-required items. That is one reason cash sales can feel cleaner.
2) Parts Of The Title/Closing Process
Some cash buyers cover more of the “buyer-side” closing expenses to keep things simple. The only way to know for sure is to look at the offer terms and the settlement statement.
Can You Avoid Paying Closing Costs Entirely?
Sometimes you can reduce what you pay at closing, and in some deals you might pay very little out of pocket. But you’ll still see line items on the settlement statement because closing has to account for taxes, recording, title work, and any payoffs tied to the property.
If someone tells you you’ll pay nothing without showing how, push for specifics.
Here’s the clean way to think about it:
- Some costs can shift between buyer and seller.
- Some costs come out of the sale proceeds.
- Some costs exist no matter what, because the transfer needs to be recorded and cleared properly.
And yes, the terms in the contract determines who is responsible for what costs.
A Quick Comparison: Traditional Sale Vs. Cash Home Sale In Michigan
Traditional Sale (Listed, Financed Buyer)
- More parties involved (lender, appraiser, more contingencies).
- More steps and more ways a deal can fall apart.
- Buyer often has more closing fees because the loan adds costs.
- You may face repair requests after inspections.
Cash Home Sale (Direct, No Lender)
- Fewer moving parts.
- Often a shorter closing timeline.
- Fewer lender-related costs involved.
- As-is terms are more common, which can save you money upfront.
What To Ask Us (Or Any Cash Buyer) About Closing Costs
If you’re planning to sell your house for cash, these questions protect you and keep everything clear:
- Which closing costs are you covering, and which ones come out of my proceeds?
- Do you charge any fees on top of the offer price?
- Who pays the Michigan transfer tax in this deal? (Get it in writing.)
- How will property taxes be prorated? (This can vary by local custom and contract language.)
- Will the offer change later? If so, what would cause that?
You deserve straight answers. If someone dodges, that’s your sign to find a more trustworthy cash home buyer.
Frequently Asked Questions About Closing Costs In A Michigan Cash Sale
Do you still pay closing costs when you sell your house for cash?
Yes, most Michigan home sales include some closing costs. A cash home sale usually has fewer costs than a traditional sale with a lender.
Who usually pays closing costs in a Michigan cash home sale?
That depends on the agreement, since many closing costs are negotiable. Sellers often cover the transfer tax and property-related payoffs, while cash buyers may cover other fees.
Are closing costs lower when you sell your house for cash?
They’re often lower because there are no lender fees, appraisals, or loan-related charges. That can make a cash home sale simpler and more predictable.
What closing costs do sellers typically pay in Michigan?
Sellers commonly pay the Michigan real estate transfer tax, prorated property taxes, and any mortgage or lien payoffs. Title-related costs depend on what you agree to in the contract.
Do you pay closing costs when you sell your home as is?
Yes, selling your home as is doesn’t eliminate closing costs. It can help you avoid repair expenses and inspection negotiations before closing.
Simplifying Your Closing Costs
In Michigan, sellers and buyers can split costs in different ways. But there are ways to keep the process simple:
- Get the terms in writing.
- Review the settlement statement draft before closing.
- Ask direct questions early so nothing surprises you later.
To learn more about how a cash home sale can cut down on closing costs, reach out to Ryan Buys Houses and get your free no obligation cash offer.
Sell Your House As-Is In Kalamazoo, MI
Selling your house for cash doesn’t have to be complicated. Reach out to get a clear, no-obligation cash offer and see how quickly you could close without fixing up your home.
Fill out our online form or call (269) 775-4095 to get a cash offer and clear answers without any pressure.