Michigan real estate: buy or sell with a local AXEN agent
Michigan gives you the right to cancel if the seller's disclosure shows up late, puts the transfer tax on the seller, and resets the new owner's property taxes the year after a sale. Here is what is the same everywhere in Michigan, and where to search homes.
Michigan: search homes by city
Tap a city to see the newest homes for sale there.
What every Michigan buyer and seller should know
The seller gives you a state disclosure before you sign
Michigan's Seller Disclosure Act makes the seller of a 1 to 4 unit home give you a written disclosure statement before a binding purchase agreement is signed (MCL 565.954). It covers the roof, basement, water, septic or sewer, heating, electric, and known environmental problems.
A late disclosure lets you cancel
If you get the disclosure, or a change to it, after you signed, you can end the deal by written notice. You have 72 hours after it was handed to you, or 120 hours if it came by registered mail (MCL 565.954). The right ends once the deed is delivered at closing.
The transfer tax is on the seller
Michigan charges two transfer taxes, and the law puts both on the seller: the state tax of $3.75 for each $500 of price (0.75%) and the county tax of 55 cents for each $500 (MCL 207.523 and 207.505). A county with 2 million or more people may charge up to 75 cents.
Some sellers can skip or get back the state tax
If the home was the seller's principal residence and its state equalized value is no higher than when they bought it, the sale can be exempt from the state tax (MCL 207.526(u)). The county tax still applies. A seller who paid it by mistake can ask Treasury for a refund on Form 2796 within 4 years and 15 days of the sale.
Your taxes reset the year after you buy
Michigan caps how fast a home's taxable value can rise, but only while the same owner holds it. In the year after a sale, the taxable value 'uncaps' and jumps to the state equalized value (MCL 211.27a(3)). So the seller's tax bill is not your tax bill. Ask for an estimate on the new value before you buy.
File your principal residence exemption
The principal residence exemption takes most school operating taxes off the home you live in. File the affidavit with your local assessor by June 1 to cover that year's summer and winter taxes, or by November 1 to cover the winter bill (MCL 211.7cc).
Condo document rights depend on who is selling
The Condominium Act's 9-business-day walk-away after you get the documents applies when you buy from the developer. On a resale from an owner, do not count on it. Ask for the master deed, bylaws, budget, reserves and minutes, and write a review period into your offer.
Some counties inspect the well and septic at sale
Michigan has no statewide septic code for sales. Instead, many counties and townships have their own time-of-sale rules that make the seller get the well and septic inspected, and fix failures, before the home can transfer. Ask the county health department in the first week.
Closing costs in Michigan: who pays what
Who pays what in Michigan. The transfer taxes are set by law and put on the seller. The rest is custom and can be negotiated.
| Buyer pays | How it works |
|---|---|
| Lender's title policy | By custom the buyer pays it. Based on the loan amount. |
| Closing or settlement fee | A flat fee from the title company, often split. |
| Recording the deed and mortgage | County register of deeds fees. |
| Home inspection | A flat fee. Not required, but worth it. |
| Well and septic tests | Only on homes without city water or sewer. |
| Condo or HOA fees | Whatever the association charges to transfer. |
| Tax proration | Your share of the summer and winter bills. |
| Your own lawyer | Optional. |
| Seller pays | How it works |
|---|---|
| State transfer tax | $3.75 for each $500 of price, unless exempt. |
| County transfer tax | 55 cents for each $500 of price. |
| Owner's title policy | By custom the seller buys it for the buyer. |
| Deed preparation | A flat fee from the title company or a lawyer. |
| Mortgage payoff and discharge | Your lender's payoff plus the fee to record the discharge. |
| Time-of-sale well and septic inspection | Only where the county or township requires it, plus any repairs. |
| Listing agent's commission | Set in your listing agreement. Always negotiable. |
| Tax proration | Your share of taxes for the time you owned the home. |
Fees change. The state sets the transfer tax rates in MCL 207.505 and 207.523, and each county sets its recording fees. Confirm current numbers with your title company.
How a Michigan home purchase runs
The order most Michigan purchases follow. Your purchase agreement sets the exact deadlines, so keep a calendar.
Get pre-approved →-
Get pre-approved. Know your budget and payment before you tour.
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Read the seller's disclosure. It should come before you sign. If it comes after, your 72-hour clock starts.
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Sign the purchase agreement. Your earnest money is held in escrow.
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Inspect. Add well and septic tests if the home has them.
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Condo? Review the documents. Use the review period you wrote into your offer.
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Appraisal and loan approval. The lender orders the appraisal and finishes underwriting.
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Title work. The title company clears liens and prepares the commitment.
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Final walk-through. Check the home is in the condition you agreed to.
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Close, then file your exemption. Sign at the title company, then file the principal residence affidavit with the assessor.
Michigan by region
Michigan's markets run from big-city suburbs to lake towns. Tap a city to see the newest homes for sale there.
Metro Detroit
Detroit and its suburbs in Wayne, Oakland and Macomb counties.
Ann Arbor and Lansing
The University of Michigan town and the state capital.
West Michigan
Grand Rapids and the Lake Michigan shore towns.
Northern Michigan
Lake and resort country, where many homes are on well and septic.
AXEN Realty in Michigan
Every AXEN agent in Michigan works under a licensed managing broker: Joseph Bergin (AXEN Realty, LLC, firm license 6505433574). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
Michigan real estate questions
Do I need a lawyer to buy or sell a home in Michigan?
State law does not require one. Title companies handle most closings. You can hire a lawyer at any point, and it is worth it for estates, land contracts, divorces or unusual titles.
Who pays the transfer tax in Michigan?
The law puts both the state and county transfer tax on the seller. The purchase agreement can shift costs, but by law the tax is the seller's. The state part may not apply if the home was the seller's residence and did not go up in value.
What if the seller's disclosure arrives after I sign?
You can cancel in writing. You have 72 hours after it is handed to you, or 120 hours if it was sent by registered mail. After the deed is delivered at closing, that right is gone.
Why will my taxes be higher than the seller's?
Because Michigan uncaps the taxable value the year after a sale. The seller's value was held down by a yearly cap. Yours starts over at the full state equalized value. Budget for that, not the seller's bill.
When do I file for the principal residence exemption?
File the affidavit with the local assessor by June 1 to get it on that year's summer and winter taxes, or by November 1 to get it on the winter taxes. It only covers the home you actually live in.
Can a seller get the state transfer tax back?
Yes, if the home was their principal residence and its state equalized value did not go up since they bought it. They file Form 2796 with Treasury within 4 years and 15 days of the sale. The county tax is not refunded.
Who usually buys the title insurance?
By custom in Michigan the seller buys the owner's policy for the buyer, and the buyer pays for the lender's policy. The purchase agreement can change that.
Is a home inspection required in Michigan?
No state law requires one for a normal sale. You should get one anyway. If the home has a well or septic, check whether the county has a time-of-sale inspection rule, because that one the seller may have to do.