What exactly will you pay at the closing table in Bloomfield Hills? When transactions run into the seven and eight figures, even small percentages become big dollars. You want clarity, control, and no surprises. This guide breaks down typical Michigan closing costs with an Oakland County lens, so you know who pays what, what’s negotiable, and how to plan your cash flow. Let’s dive in.
What closing costs cover in Michigan
Closing costs are the non-purchase-price expenses that finalize a real estate sale. In Michigan, some items are statutory, like transfer taxes. Others are customary, like brokerage compensation, and many are variable, like lender fees and title premiums. Your exact mix depends on your contract, financing, and property type.
Local process matters. Bloomfield Hills sits in Oakland County, where the Register of Deeds records documents and collects required recording fees. While the categories are similar statewide, county procedures and fee schedules drive the final numbers that appear on your settlement statement.
Seller closing costs in Bloomfield Hills
Big-ticket items to expect
- Real estate commission. Often the largest seller expense. Industry norms commonly cited are about 5–6% of the sale price, usually split between listing and buyer agents. This is negotiated and can vary.
- Michigan transfer taxes. Michigan typically applies a state tax of $3.75 per $500 of consideration and a county tax of $0.55 per $500. Combined, this equals $4.30 per $500 or about 0.86% of the sale price. Who pays is negotiable, but sellers commonly cover these in many Michigan transactions.
- Mortgage payoff and releases. Any existing liens must be paid off. Expect payoff statement charges and recording fees to release the mortgage.
- Title and settlement items. Depending on your contract, you may cover certain title-related costs and settlement fees. Allocation of the owner’s title policy is negotiable.
- Prorations and misc. Property taxes, utilities, HOA dues, and condo fees are prorated. You may also see document prep, courier charges, repair credits, or agreed seller-paid buyer costs.
Local notes for Oakland County sellers
The Oakland County Register of Deeds handles deed recording and related fees. Property tax proration deserves extra attention here, as higher-value properties often carry sizable tax bills, which can impact your net proceeds and buyer escrow requirements.
Seller example: $1,000,000 sale
- Commission at 5.5%: about $55,000
- Michigan transfer taxes at 0.86%: about $8,600
- Mortgage payoff(s), prorations, and closing company fees: variable
These figures are estimates for planning only. Title premiums and closing fees follow rate schedules and must be quoted by your title company. Your final costs depend on your contract and payoff details.
Buyer closing costs in Bloomfield Hills
Loan and lender fees
- Origination, processing, and underwriting fees. Quoted as a percentage of the loan or a flat fee.
- Discount points. Optional, used to buy down your interest rate.
- Appraisal, credit report, and ancillary charges. Ordered by your lender.
Title and settlement
- Lender’s title insurance policy. A one-time premium based on your loan amount. Most lenders require it.
- Owner’s title insurance policy. Optional but recommended. It is a one-time premium that protects your ownership. Allocation is negotiable.
- Title search, settlement agent, and closing protection letter. Title companies quote these items.
Prepaids, escrow, and recording
- Prepaid interest. Covers interest from your closing date to month-end.
- Initial escrow deposits. Many lenders collect several months for property taxes and homeowners insurance.
- Recording fees. Oakland County sets the schedule to record your deed and mortgage.
Inspections and HOA items
- Property inspections. Plan for general inspections and, for estate-caliber homes, specialized evaluations such as structural, roof, pool, or well/septic if applicable.
- Association fees. Expect transfer or administrative fees and prorated dues in HOA or condo communities.
Buyer example: $1,000,000 purchase with 80% LTV
- Loan origination at 1% on an $800,000 loan: about $8,000
- Appraisal: roughly $400 to $800
- Lender’s title policy: often in the ~$1,500 to $4,000 range depending on the schedule
- Owner’s title policy: typically several thousand dollars based on purchase price
- Prepaids and escrows: several thousand dollars for taxes and insurance deposits
- Recording and other fees: several hundred dollars
These are illustrative only. Ask your lender and title company for transaction-specific quotes.
Transfer taxes, title insurance, and recording in Oakland County
Michigan transfer tax basics
Michigan commonly applies two transfer taxes at closing: a state tax of $3.75 per $500 of consideration and a county tax of $0.55 per $500. Together, that is about 0.86% of the sale price. While sellers commonly pay these in many Michigan markets, the purchase agreement controls. Certain transfers may qualify for statutory exemptions. Confirm your status early.
Title insurance choices
- Lender’s policy. Protects the lender’s lien interest. One-time premium at closing based on the loan amount.
- Owner’s policy. Protects your ownership against covered title defects. One-time premium based on purchase price. Often modest relative to total investment, especially at higher price points.
- Rates and discounts. Title companies use filed or scheduled rates and may offer discounts when issuing both lender and owner policies simultaneously. Always request a written quote.
Recording and document handling
Expect to record the deed, mortgage, and any releases or related instruments. The Oakland County Register of Deeds sets fee schedules and formatting rules. Recording fees are relatively small compared to percentage-based items, but they are mandatory and should be included in your final statement.
Strategy and negotiation
Where you can negotiate
- Seller concessions. Credits toward buyer closing costs, rate buy-downs, or repair credits are all negotiable.
- Title policy allocation. Decide who pays the owner’s policy and how to share settlement charges.
- Commission. Structure and rate are negotiated between seller and brokerage.
- Closing agent fees. Some settlement costs can be shopped or negotiated.
Timing and disclosures
Under federal rules, lenders provide a Loan Estimate within three business days of your mortgage application and a Closing Disclosure at least three business days before closing. These forms detail fees, prepaids, and cash-to-close, allowing you to confirm figures before signing.
Pre-closing checklist for busy clients
- Confirm in writing who pays transfer taxes and the owner’s title policy.
- Ask your lender for a Loan Estimate and clarify all fees and points.
- Request title quotes for owner’s and lender’s title insurance and settlement charges.
- Order inspections early. Add specialized evaluations for estate features if needed.
- Obtain payoff statements for all liens and confirm release procedures.
- Verify HOA or condo transfer requirements and estoppel fees early.
- Confirm Oakland County recording requirements for originals and copies.
Common pitfalls to avoid
- Not clarifying tax and title allocations in the offer. Ambiguity leads to last-minute friction.
- Delaying inspections. Specialty scheduling can slow high-value transactions.
- Overlooking HOA or condo documents. Transfer and estoppel steps can delay closings.
- Missing lien releases or payoff timing. Incomplete releases can block recording.
- Underestimating prepaids and escrows. Large tax bills impact buyer cash to close.
Plan your next move
You want a smooth, discreet, and predictable closing. With clear allocation, early quotes from your lender and title company, and proactive scheduling, you can control timing and cash flow with confidence. If you are considering a sale or purchase in Bloomfield Hills or greater Oakland County, our boutique team can help you plan every step with precision.
For senior-level guidance tailored to your situation, connect with Crain Homes. Request a Confidential Valuation and get a personalized path to a clean close.
FAQs
Who typically pays Michigan transfer taxes in Bloomfield Hills?
- In many Michigan transactions the seller pays, but it is negotiable and should be specified in the purchase agreement.
How much are Michigan transfer taxes on a $1,000,000 sale?
- At a combined rate of $4.30 per $500 of consideration (about 0.86%), the estimated taxes are roughly $8,600.
What is the difference between owner’s and lender’s title insurance?
- The lender’s policy protects the lender’s lien; the owner’s policy protects your ownership interest. Both are one-time premiums paid at closing.
When will I see my final numbers as a buyer with a mortgage?
- Your lender must provide a Closing Disclosure at least three business days before closing, and the title company will issue a final settlement statement shortly before signing.
Can buyer closing costs be rolled into the mortgage in Michigan?
- Some charges, like discount points or certain third-party fees, may be financed if allowed by the lender, but many costs and taxes are typically paid at closing.
