Understanding Closing Costs: What Buyers & Sellers Should Know

Buying or selling a home in Washtenaw County—or anywhere in Southeast Michigan—comes with more than just the purchase price. One of the most common surprises for first-time buyers and sellers is closing costs. Whether you’re purchasing your first condo in Ann Arbor, downsizing in Saline, or selling a luxury home in Dexter, understanding these expenses will help you prepare for a smoother transaction.

Let’s break it down so you know what to expect.

What Are Closing Costs?

Closing costs are the fees and expenses due at the end of a real estate transaction, beyond the home’s sale price. These costs cover everything from lender fees to title insurance and typically range between 2–5% of the purchase price for buyers. Sellers also have their own share of costs to consider.

Common Closing Costs for Buyers

If you’re buying a home in Washtenaw County, here are some of the fees you may see on your settlement statement:

Loan origination fees – Charged by your lender for processing the mortgage.

Appraisal & inspection – Required to confirm the property’s value and condition.

Title search & insurance – Ensures the property has a clear title with no ownership disputes.

Escrow deposits – Funds set aside for property taxes and homeowners insurance.

Recording fees – Paid to the local county to record your new ownership.

Pro tip: Some loan programs in 2025 are offering credits or down payment assistance for first-time buyers, which may help reduce your out-of-pocket expenses.

Common Closing Costs for Sellers

Sellers don’t pay the same costs as buyers, but there are still important expenses to prepare for:

Agent commissions – Typically the largest cost, split between the listing and buyer’s agents.

Title insurance (seller’s portion) – In Michigan, sellers often pay for the owner’s title policy.

Transfer taxes – Local and county fees for transferring property ownership.

Outstanding bills – Property taxes, utilities, or HOA dues owed at the time of closing.

In August 2025, with mortgage rates slowly easing and buyer demand picking back up, many sellers are choosing to offer seller concessions—covering some buyer closing costs as an incentive to help their home stand out.

How to Save on Closing Costs

Negotiate concessions – Buyers can ask sellers to cover part of their costs.

Shop for lenders – Different lenders offer different fees; comparing can save you hundreds.

Ask about local programs – Washtenaw County buyers may qualify for Michigan State Housing Development Authority (MSHDA) grants or credits.

Review your closing disclosure carefully – Mistakes happen; double-check every line item.

Why Closing Costs Matter

Closing costs directly impact your bottom line as a seller and your total investment as a buyer. Being prepared ensures you avoid last-minute surprises and make confident decisions.

If you’re planning to buy or sell this year, having a trusted local real estate team guide you through the numbers can save you both stress and money.

Thinking about buying or selling in Washtenaw County? Don’t let closing costs catch you by surprise. Register on our website today to get a personalized market report and tailored guidance on your next move.

_________

Written by LIVgreat Real Estate, your trusted Washtenaw County real estate experts.
Email: hello@livgreatrealestate.com
Website: https://livgreatrealestate.com

🎧 Listen to our Podcast
Stay inspired and informed even on the go! Tune in to our podcast for real estate tips, local insights, and motivation designed to guide your journey.