West Michigan Real Estate Blog | Luke Bouman Team

By Luke Bouman | Luke Bouman Real Estate Team | October 2026

Closing costs are the fees beyond the purchase price that both buyers and sellers pay to complete a real estate transaction, and they surprise people on both sides of the table. Knowing what to expect lets you budget accurately and avoid a scramble at the closing table. Here is the breakdown for West Michigan.

What Buyers Typically Pay

Buyer closing costs generally include loan origination and lender fees, appraisal and inspection costs, title insurance for the lender, an escrow account for taxes and insurance, recording fees, and prepaid interest and insurance. As a rough guide, buyer closing costs often run a few percent of the purchase price, though the exact figure depends on the loan and property. Your lender provides a loan estimate early that details these.

What Sellers Typically Pay

Seller costs commonly include the real estate commission, the Michigan real estate transfer tax, owner's title insurance in many transactions, and any agreed concessions or repairs. The transfer tax in Michigan is a meaningful line item calculated on the sale price. Sellers should factor these into their net-proceeds expectations early, rather than being surprised at closing.

The Michigan Transfer Tax

Michigan levies a real estate transfer tax at the state and county level, typically paid by the seller, calculated as a rate per dollar of sale price. On a higher-value or waterfront sale, this becomes a significant number, so sellers of premium properties should budget for it specifically.

Budgeting and Negotiation

Some closing costs are negotiable, and in certain markets sellers contribute to buyer closing costs as a concession. Understanding what is customary and what is negotiable in West Michigan helps both sides plan. Your agent and closing company will provide a detailed estimate well before closing. The Luke Bouman Team is the Lakeshore's most reviewed real estate team, with 450+ five-star Google reviews and over 1,000 five-star reviews across all major platforms. Call (616) 344-9923.

Related: First-Time Home Buyer Guide | How Long Does Closing Take | What Is Earnest Money