Cash Buyer Closing Costs in Michigan: Who Pays What

When you sell your house to a cash buyer in Metro Detroit, you skip the lender’s fees, the appraisal and the agent commission. You do not skip closing costs altogether. A few charges still exist on every Michigan sale: transfer tax, a prorated share of property taxes, title work, recording and any mortgage payoff. What matters is which of them the buyer agrees to cover in the contract and which come out of your proceeds.

This guide walks through each charge, shows a worked example, and explains the contract terms that decide your final number. If you are weighing a cash offer right now, read the section on the purchase agreement before you sign anything.

TL;DR

• Cash sales have no lender fees, appraisal or commission, but Michigan transfer tax, prorated property taxes, title charges and any payoff still apply.
• Michigan’s combined transfer tax is $8.60 per $1,000 of the price, and it is customarily the seller’s cost unless the contract says otherwise.
• Who pays each item is negotiable. A written offer should say, line by line, which closing costs the buyer covers.
• Ask for a settlement statement before closing day so you can see your net proceeds in dollars.
• At Sell Dave Your House, we cover standard closing costs for sellers and make a written cash offer within 24 hours.

Table of Contents

• Why a cash sale still has closing costs
• The seller costs you should expect in Metro Detroit
• A worked example: a $200,000 sale
• Which costs can the cash buyer pay?
• Contract terms that decide what you actually keep
• How to estimate your net proceeds before you sign
• Perspective: what we see at the closing table
• Special situations that change the math
• A broader overview of selling to a cash buyer
• Get a written offer with the costs spelled out
• FAQ
• Sources

Why a cash sale still has closing costs

Search results for this topic are mostly written for buyers. They say a buyer paying cash usually budgets roughly 1% to 3% of the price for closing costs, while buyers with a mortgage pay more because of lender charges. That is the buyer’s side of the table.

If you are the seller, the picture is different. Your costs are tied to the transfer of ownership, not to financing:

• Transfer tax owed to the state and county when the deed changes hands.
• Property tax proration, which settles who owes taxes for which part of the year.
• Title and settlement charges, including the title commitment and, by Michigan custom, often the buyer’s owner’s policy.
• Recording fees for the deed.
• Payoffs of any mortgage, home equity loan, tax lien or other claim against the property.

With a traditional listing you add agent commissions, repairs requested after inspection, and often a buyer’s request for the seller to contribute to closing costs. A direct cash purchase removes those. Our own breakdown of seller closing costs in Michigan goes through the commission savings in more detail.

The seller costs you should expect in Metro Detroit

Michigan transfer tax

Michigan charges a combined real estate transfer tax of $8.60 per $1,000 of the sale price, made up of a $7.50 per $1,000 state tax and a $1.10 per $1,000 county tax, according to a summary of Michigan transfer tax rules. The same summary notes that the seller (the grantor) is liable for it under Michigan law, although buyer and seller can agree to a different split in the purchase agreement.

The county rate is the same in Wayne, Oakland and Macomb Counties, according to a Michigan closing cost guide, so a house in Warren is taxed at the same rate as one in Dearborn or Royal Oak.

Some transfers are exempt, including transfers between spouses and certain foreclosure or court-ordered transfers, and the legal basis for an exemption has to be stated on the deed, per the same transfer tax summary. If you think your sale qualifies, ask the title company before closing rather than after.

Prorated property taxes

Property taxes are split between buyer and seller based on the closing date, following local tax-cycle convention, as a Michigan real estate law firm explains. In practice, this means you pay for the days you owned the home. If taxes for the current period are unpaid, your share is deducted from your proceeds. If you prepaid, you get a credit.

This is the line that surprises people most, because it is not a fee. It is your own tax bill, settled on the closing statement. A faster closing date does not make it larger, but it does change the split.

Title insurance and title work

In Michigan, it is customary for the seller to pay for the buyer’s owner’s title insurance policy, although that is negotiable and can be adjusted in the contract, according to the same law firm’s guide. Standard Michigan sale paperwork also expects the seller to provide a title commitment showing the title is in the condition the contract requires, as seen in a sample Michigan purchase package from a Sterling Heights title company.

Title problems are where closings slow down. Old liens, unpaid contractor bills, missing heirs on an inherited house and open probate matters all show up here. We explain how a local title company keeps a quick closing safe in our guide to closing in 7 days.

Recording fees

Recording the deed is a small line. Wayne County’s Register of Deeds lists a recording fee of $30 per document effective January 1, 2026, and asks that the property tax ID number and common address appear on the document, per its recording page. Oakland and Macomb Counties set their own fee schedules, so confirm the amount with the title company.

Mortgage payoff and other liens

If you still owe money on the house, the payoff comes out of the sale price at closing. That includes the balance, accrued interest and any prepayment penalty your loan carries. Attorney or closing fees apply too if you hire an attorney for your side, as one Michigan closing cost overview notes. The payoff is not a cost of selling to a cash buyer. It is money you owe regardless. But it is the single biggest reducer of what you walk away with, so request an exact payoff figure from your lender early.

A worked example: a $200,000 sale

Here is how the main seller charges stack up on a $200,000 Metro Detroit sale, using the transfer tax rate above. The title, attorney and proration figures vary by house, so they are described rather than guessed.

The point of the table is the first and third rows. The transfer tax is the same arithmetic in both cases: $200,000 divided by 1,000, times $8.60. The commission and repair negotiations are what differ. If you want the commission side in numbers, our article on the hidden costs of selling with a realtor covers it, and our page on the cost to sell a house in Michigan lists the fees and documents together. For a Detroit address specifically, see what sellers actually pay in Detroit.

Which costs can the cash buyer pay?

Nearly every seller-side closing cost can be moved to the buyer by agreement, because Michigan’s customs are defaults, not mandates. The ones commonly negotiated are:

• Owner’s title insurance. Customarily the seller’s cost, but adjustable by contract.
• Transfer tax. Seller’s by law, though buyer and seller may agree on another split.
• Settlement or escrow fees. Often split or assigned to one side in the agreement.
• Recording fees. Small, and easy for a buyer to absorb.

What cannot be moved is your own debt. A payoff, a tax lien or a judgment against you belongs to you, and your net proceeds are the price minus those items.

A cash buyer who says “no closing costs” should be able to show you which lines that covers. The honest version is: “we pay the standard costs listed in the contract, and your payoff and prorated taxes are settled from the price.” At Sell Dave Your House, we cover standard closing costs for sellers, and we put the arrangement in writing so you can see it before you commit.

Contract terms that decide what you actually keep

The purchase agreement is where closing costs become real. Before you sign a cash offer, check these terms:

1. Closing date. A sample Michigan purchase agreement sets the closing date and lists costs such as seller-paid taxes and assessments, according to a title company’s sample package. With a cash buyer, a date you choose, even one a week out, is normal. A date that keeps sliding is a warning sign.
2. The as-is clause and inspection option. The same sample agreement includes an as-is clause that is subject to the buyer’s inspection option. Ask how long the buyer’s inspection window runs and what happens if they walk away. Our guide on removing the inspection contingency explains why a short or waived window protects your timeline.
3. Who pays what. Look for a line that names the transfer tax, title policy, settlement fee and recording fee, and says who bears each.
4. Fees outside the price. Ask whether any assignment fee, service fee or deduction appears between the offer and the settlement statement. A fair offer has none.
5. Your ability to cancel. Read the termination language. Know what deposit, if any, is at risk and under what conditions either side can cancel.
6. Occupancy and cleanout. Confirm whether you must remove belongings, since an as-is purchase usually means you do not have to clean.

If anything in the agreement is unclear, a Michigan real estate attorney can review it before closing. This matters most when the sale involves probate, a co-owner, a divorce or a lien.

How to estimate your net proceeds before you sign

Do not rely on a headline offer. Ask for a net sheet, then for the settlement statement ahead of closing day.

A closing statement in the ALTA format lists the sale price, mortgage payoff, transfer tax, prorated property taxes, title fees, any commission, other agreed costs and your net proceeds, as described in a Metro Detroit closing process guide. The same guide suggests requesting it 48 to 72 hours before closing so you have time to question every line.

A simple way to check it yourself:

1. Start with the offer price.
2. Subtract your mortgage and lien payoffs.
3. Subtract the transfer tax if the contract leaves it with you ($8.60 per $1,000).
4. Subtract your prorated property tax share, or add a credit if you prepaid.
5. Subtract any title, settlement or recording charge the contract assigns to you.
6. The remainder is your estimated net.

Compare that with a listing scenario where you subtract commission, repair credits and the carrying costs of waiting. Homeowners are often surprised that a lower headline cash offer can net a similar amount once commissions, repairs, months of utilities and taxes, and the risk of a deal falling through are counted. Run both numbers with your own house before deciding.

Perspective: what we see at the closing table

We have bought houses across Southeast Michigan for more than 16 years, and the same misunderstanding comes up again and again. Sellers hear “cash buyer” and assume that means “no costs at all,” or they hear “closing costs” and assume a cash sale will be eaten up by fees. Neither is true.

What decides your result is how clearly the offer is written. We put our offer in writing within 24 hours, name who pays each standard closing cost, and let you choose the closing date. Many sellers close in as little as 7 days. Others, such as heirs sorting out a probate estate or owners who need time to move, pick a later date. Either way, the numbers should not change between the offer and the table.

Our advice is simple. Compare offers on net proceeds, not on price alone. Ask every buyer, including us, for the costs in writing. And if a house comes with a lien, a tax problem or a family disagreement, tell us early so the title work can start right away.

— Real Estate Team

Special situations that change the math

• Inherited or probate houses. Your authority to sell depends on the estate paperwork, and title clearance can take longer. We explain the options on our pages for selling an inherited house and a house in probate, and we buy houses in these situations as-is.
• Foreclosure. Selling before a sale date can protect your credit and your equity. If you are in this position, see our page about selling a house before foreclosure. The payoff and any back payments will come off the price at closing.
• Rentals with tenants. Tenant leases, security deposits and rent prorations also appear on the settlement statement.
• Principal-residence sellers. One source says a qualifying principal-residence seller may claim a state transfer-tax refund, but you should confirm eligibility with the Michigan Department of Treasury or a tax professional before counting on it.

If you are tracing costs in a particular city, the process is the same, and we buy in Warren, Southfield and across Wayne County, among many other Metro Detroit cities.

A broader overview of selling to a cash buyer

If you want a second explanation of how the pieces fit together, this overview of closing costs when selling to a cash buyer covers the general structure of a direct sale, including what disappears when there are no agent fees or commissions. Rules and rates are state-specific, so use the Michigan numbers above for your own sale.

Get a written offer with the costs spelled out

If you want to see the numbers for your own house, we make a fair all-cash offer within 24 hours. You pay no repair costs, no commissions and no hidden fees, and you pick the closing date. Request your cash offer and we will show you who pays each closing cost before you decide. You can also read how selling your house for cash works step by step first.

FAQ

Does a cash buyer pay closing costs in Michigan?

It depends on the contract. Michigan customs make the seller responsible for transfer tax and often the buyer’s title policy, but both can be shifted to the buyer by agreement. We cover standard closing costs for our sellers, and we state that in the written offer.

How much are seller closing costs on a $200,000 house in Michigan?

The transfer tax alone is $1,720 at $8.60 per $1,000. Add your prorated property taxes, title charges, recording fee and any payoff. With a traditional listing, commission comes on top. In a direct cash sale where the buyer covers standard costs, much of that is removed.

Are closing costs cheaper if you pay cash?

For a buyer, yes, because lender and appraisal charges disappear. Cash buyers commonly budget about 1% to 3% of the price, compared with higher percentages for financed purchases. For a seller, the main saving comes from avoiding commissions, repairs and delays.

Can I cancel a cash offer after signing?

Only as the contract allows. Read the inspection option, any deposit terms and the termination clause before you sign. If you are unsure, have a Michigan real estate attorney review the agreement first.

Sources

• How Much Is Transfer Tax in Michigan: Rates & Exemptions
• Cost to Sell a House in Michigan: Closing Costs
• Michigan Seller Closing Costs, Holden Richardson
• Sample Michigan purchase package, Sterling Title
• Document Recording, Wayne County Register of Deeds
• Michigan Closing Costs 2026: Complete Fee Breakdown
• Real Estate Closing Process For Home Sellers In Metro Detroit

Recommended

• Skip a 5% Commission: Seller Closing Costs in Michigan
• Seller Closing Costs in Detroit: What You’ll Actually Pay
• Hidden Costs of Selling with a Realtor in Michigan
• Cost to Sell a House in Michigan: Fees, Taxes & Documents