We buy houses in Grand Rapids, Michigan. Do you find yourself asking, “I’m ready to buy/sell my house in Grand Rapids, MI, what will my closing costs be?” We are a legitimate homebuyer in Grand Rapids and we can help you with this situation. Check out our latest post to learn more about closing costs!
Closing Costs in Grand Rapids, MI- What to Expect?
You have made the decision to buy or sell a house and now it’s time to figure out what your closing costs in Michigan will be. I say “in Michigan” because some closing costs vary state to state. There is no exact science in estimating closing costs and they vary widely depending on many factors.
A general rule of thumb, if a lender is involved in financing the house, your closing costs will be higher. Also, buyers will generally have higher closing costs in Holland than sellers but it’s common for buyers to ask for “seller concessions” and ask that some (or all) of the costs be paid by the seller. This is more common in a buyers market or if you offer full asking asking price.
According to this article by Zillow, the average home seller will pay 8-10% or $19,000 – $24,000 in closing costs. Here at Lakeshore Home Buyer, we usually pay all closing costs to help maximize the seller’s gain on the house. But let’s dig a little deeper and see what all these closing costs mean and why they are part of real estate transactions.
Here is a list of the most common closing costs in Grand Rapids, MI
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Home Inspection:
It’s always wise to hire a professional to inspect the house before making the big purchase. This will also give you leverage with the seller to further negotiate the price if you do find things that need to be repaired, especially something major
- Cost $350 – $1000 (usually depends on the square footage)
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Property Taxes/Insurance:
You may need to pay a portion of your property taxes and insurance upfront into an escrow account.
- Cost depends on the property tax and insurance costs.
Michigan Transfer Tax:
- State transfer tax is $3.75 for every $500 transferred and county tax is $.55 for every $500 transferred. This is one of the standard closing costs in Michigan
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Appraisal:
All lenders require a professional appraisal to verify market value.
- Cost is $300-$500
We talked about escrow, but the buyer and seller will need to determine who is paying any remaining property taxes for the year. Usually this will be prorated on the close date and split between buyer and seller. Although some companies, such as Sell My Home Fast Philadelphia, cover both ends most of the time.
- Cost widely varies depending on assessed value of property
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Loan Origination Fees:
Standard fee charged by lenders to obtain a mortgage
- Typically .5% – 1% of loan amount
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Application Fee:
Non refundable fee lenders charge to start the process
- Up to $500
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Discount Points:
Fee charged by lenders in exchange for a lower interest rate.
- 1 point equals $1,000 for every $100,000
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Other Lender Fees:
Every lender is different and may charge additional fees for credit checks, wire transfer fees, etc.
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Loan Interest:
Interest on the loan prorated from the closing date to the first mortgage payment
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Attorney Fees:
It’s wise to hire an attorney to review purchase agreements, loan documents and help you negotiate with the buyer/sellers if any issues come up during the inspection or escrow period
- Varies – $300 – $1000
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Title Fees:
Title companies will run a title search to make sure it’s clear. You will also need to pay a one time fee for title insurance
- Varies – $100 – $800
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Mortgage Insurance / PMI:
If your down payment is less than 20%, you will be responsible to pay private mortgage insurance (PMI) and may pay it up front, or build into your loan
- Varies depending on loan
Other Less Common Closing Costs In Grand Rapids Home
Pretty long list right? The crazy thing is there could be more. If your house is located near a flood plain, you may need flood certification. If you are buying a home or condo that has a homeowners association (HOA) you may be required to pay some of this at closing. If you are assuming another loan, there could be assumption fees. Bottom line, there are a ton of potential costs you may be responsible for at closing that you weren’t aware of.
If you are selling your house, be prepared to negotiate these costs with the buyer, especially if your house has been on the market for a while or is in need of repairs.
Sell Your House In Grand Rapids, MI!
As mentioned earlier, Lakeshore Home Buyer usually pays all closing costs when purchasing houses for cash. This can really help a seller maximize his or her gain from the sale, especially considering closing costs in Grand Rapids, MI can be as much as $10,000 or more! It is our goal to help make sure the sale is a win-win for all. We offer cash for houses in Grand Rapids, MI. Get your fair offer today!
If you would like to learn more about the selling process or if you have any questions about selling your Michigan home, send us an email using this form, or give our office a call now! (616) 202-6498