The main costs of selling
- Real estate commission. Often around 5% to 6% in total. Commissions are always negotiable; J.R.'s full-service total is 4%.
- Michigan transfer taxes. The state tax is $3.75 per $500 of the sale price and the Washtenaw County tax is $0.55 per $500, a combined 0.86%. In Michigan, sellers customarily pay these.
- Owner's title insurance policy. In Michigan, the seller typically pays for the buyer's owner's title policy. The cost depends on the price.
- Prorated property taxes and any special assessments, settled at closing.
- Payoff of your mortgage and any home equity loan.
- Repairs or credits negotiated after the buyer's inspection.
Example: a $500,000 Ann Arbor home
| Typical 6% commission | J.R.'s 4% total | |
|---|---|---|
| Real estate commission | $30,000 | $20,000 |
| Michigan + Washtenaw transfer tax (0.86%) | $4,300 | $4,300 |
| Commission + transfer tax | $34,300 | $24,300 |
Title insurance, prorated taxes and your mortgage payoff are the same either way. The difference is the commission: about $10,000 more in your pocket on a $500,000 sale.
Ways to keep more
- Negotiate the commission. A lower total fee is the single biggest saving. Try the savings calculator with your price.
- Price it right from day one. Overpriced homes sit, and price cuts often cost more than pricing correctly at the start.
- Fix small things before listing. Inexpensive repairs can prevent bigger credits after the buyer's inspection.
- Offer a home warranty. J.R. includes a one-year warranty, which can make buyers more comfortable and reduce repair requests.
- Ask about the transfer tax exemption. Some sellers of a principal residence qualify for an exemption from the state transfer tax. J.R. checks for you.
Frequently asked questions
Who pays transfer tax in Michigan?
By custom, the seller pays both the state and county real estate transfer taxes in Michigan, though it can be negotiated.
What is the transfer tax in Washtenaw County?
The state rate is $3.75 per $500 and the county rate is $0.55 per $500, for a combined $4.30 per $500, or 0.86% of the sale price.
Are real estate commissions negotiable?
Yes. Commissions are not set by law. J.R. offers full service for a 4% total fee, including MLS listing, a dedicated website, a Google Ads campaign and a free home warranty.
This guide is general information, not legal or tax advice. Rules can change; check with your assessor, title company or tax professional for your situation.