August Market Update

Understanding The Closing Costs In Michigan

When you're preparing to buy or sell a home in Michigan, closing costs can feel like one of the more confusing parts of the process. I’ve worked with many clients who were caught off guard with the total amount or weren’t sure where their money was going as part of a previous real estate transaction.

It’s very important to know what to expect ahead of time. If you're clear on how closing costs work, you’ll be able to plan more effectively and avoid unnecessary surprises.

Know What You’re Paying For

Many people think closing costs are just one big fee at the end of the deal. They’re actually made up of smaller, specific charges. You might see fees for title work, transfer taxes, recording, and legal services. If you're selling, you’ll also have commissions and prorated property taxes. If you are buying, there will also be lender fees, inspection and appraisal costs. I always walk clients through a detailed breakdown so they understand the estimated costs.

Understand How Transfer Taxes Work In Michigan

In Michigan, transfer taxes are one of the biggest line items on the seller’s side. The state collects a fee based on the sale price of the property, and in some counties, there’s a local tax as well. This cost isn’t negotiable, and it often surprises sellers who didn’t budget for it. Before you list your home, I can estimate the transfer tax based on your asking price, so there’s no guesswork later.

Keep An Eye On Property Taxes

Michigan property taxes are paid in advance or arrears, depending on the time of year and the local township. If you're selling, you may owe a prorated amount based on how long you’ve owned the home during the year. If you're buying, you might need to reimburse the seller for taxes they’ve already paid. This is something I will explain early in the process so you have a clear understanding how this impacts you.

Be Ready To Act Quickly

Homes here tend to sell fast. If one checks your boxes, don’t wait too long. Still, take time for a walk-through and inspection. A rushed offer without due diligence can lead to surprises. I can run comps on properties you're interested in so that you can make a strong offer without overpaying.

Don’t Forget About The Fees

Title services are a key part of every closing. The title company checks for any legal issues tied to the property, handles the money, and prepares the documents. In most Michigan transactions, the seller pays for the owner's title policy. The buyer usually pays for the lender’s title policy if they’re getting a mortgage. I recommend reviewing the title quote as soon as it comes in so you can confirm everything looks correct.

Plan Ahead For Agent Commissions And Extras

Commission fees are the biggest closing cost for most sellers. Commissions are negotiable. If you're selling, we will talk early on about what that looks like as part of your closing costs. Sometimes, sellers also agree to cover part of the buyer’s costs to help move the deal forward. This is completely up to the seller and is negotiable. This can be a smart move, but only if it fits your bottom line.

Commission fees are the biggest closing cost for most sellers. Commissions are negotiable. If you're selling, we will talk early on about what that looks like as part of your closing costs. Sometimes, sellers also agree to cover part of the buyer’s costs to help move the deal forward. This is completely up to the seller and is negotiable. This can be a smart move, but only if it fits your bottom line.

Should We Meet This Month?

You’re probably wondering where the market stands as summer winds down. I’ve been watching the numbers closely, and things are settling into a more balanced rhythm. Prices are steady, listings are up, and you have more room to make smart decisions without pressure.

What Buyers And Sellers Can Expect:

• Pricing: Right now, the median sale price in Kalamazoo County is about $275,000. That’s up slightly from last year, but things are no longer jumping month to month. If you’re buying, you can feel more confident in long-term value. If you’re selling, it’s important to price realistically.
  

• Inventory: Around 550 homes are currently listed for sale in the county. That’s the highest we’ve seen in a while. You’ll notice more options at every price point. As a seller, be ready to compete by making your home stand out online and in person.
  

• Timing: Most homes are staying on the market for about 34 days. With inventory increasing, buyers have more options and are taking more time to think before making an offer. Pricing is very important if sellers want to be on the shorter end of this timeline.
  

• Offers:  On average, homes are selling for about 99 percent of the asking price. Some are going for less, especially if they need work. If you're buying, there may be room to negotiate. If you're selling a clean, move-in-ready home, you should get strong offers.
  

• Financing:  Mortgage rates in Michigan are holding around 6.9 percent. That’s higher than what we saw two years ago. If you're buying, it helps to talk to multiple lenders. Some may offer credits or ways to lower your rate that others won’t mention.

Happenings Southwest Michigan

Summer is still in full swing, and there’s no shortage of local fun. From educational expos to family activities, Kalamazoo offers plenty to enjoy throughout the second half of the month. Here are three great community events happening after August 21st.

BrickUniverse Kalamazoo LEGO Fan Expo

August 23-25, 2025
BrickUniverse brings LEGO artists and fans together at the Kalamazoo Expo Center. View massive displays, meet builders, and enjoy hands-on activities designed for all ages. It’s a fun way to spend the weekend with kids or explore your creative side.

For more information, visit BrickUniverse LEGO

Dozynski Polish Fest - Grand Rapids, MI

August 22-24, 2025, All-Day Events
Thousands of people turn out each year for this three-day celebration of Polish food, music and culture, usually held at a Downtown location on the last full weekend of August. Activities include a children’s tent and demonstrations of Polish cooking and decorating eggs in the Eastern European style called pisanki.

For more information, visit Polish Heritage Society

Scottish Festival - Parchment, MI

September 6, 2025, 9am-5pm
The Kalamazoo Scottish Festival is a free, family-friendly event celebrating Scottish culture. It features live Celtic music, piping, drumming, Highland athletic competitions, and a variety of food and merchandise vendors.

Attendees can explore clan tents to learn about Scottish history/genealogy. For children, there is a dedicated games area with mini Highland games, crafts, and a ride. The festival also includes a popular animal exhibit with Highland cows, sheep, and deerhounds.

For more information, visit Kalamazoo Scottish Fest

Paw Paw Wine & Harvest Festival - Paw Paw, MI

September 5-7, 2025, All-Day Events
The Wine and Harvest Festival offers something for everyone including tastings and tours for wine enthusiasts, a 5k, the Refresco grape stomping competition, kayak race, and other contests, four stages of entertainment for music-lovers, and carnival rides, fireworks, parade for all ages. This is one weekend you won’t want to miss.

For more information, visit Wine & Harvest Festival

Allegan County Fair - Allegan, MI

September 5-13, 2025, All-Day Events
Rodeo, Tractor Pulls, Demolition Derby and parade, and two days of Harness Racing. Check out our discounts on fair admissions and carnival rides. Over the years, the fairgrounds have continued to grow and currently encompasses 110 acres featuring a race track allowing for racing 5-wide, a horse complex, a 38,000 sq. ft. indoor exhibit hall complex, livestock barns and arenas, fully-covered grandstand, the Allegan County Pioneer Village and an updated campground area. Activities occur at the fairgrounds year-round. Annual fair starts the first Friday after Labor Day and runs nine days..

For more information, visit Allegan County Fair

Featured Home(s) Of The Month

^{2432 Lawrence Dr., Benton Harbor, MI 49022}

^{SOLD - $35,000 - 8/19/25 (Listing Agent)}

^{3 Bedrooms, 1 Bathroom, 960 Sq. Ft.}

^{208 Central St., Battle Creek, MI 49017}

^{Pending - $36,900 - 8/19/25 (Listing Agent)}

^{3 Bedrooms, 1 Bathroom, 765 Sq. Ft.}

^{4673 Chasemoor Dr., Portage, MI 49024}

^{SOLD - $389,900 - 8/12/25 (Listing Agent)}

^{4 Bedrooms, 4 Bathrooms, 2,814 Sq. Ft.}

^{25808 Forest Ln., Mattawan, MI 49071}

^{Pending - $284,900- 5/14/25 (Listing Agent)}

^{3 Bedrooms, 2 Bathrooms, 1,458 Sq. Ft.}

Agent Spotlight

Prior to real esatate Sarah worked for local corporate science companies. She held different positions within customer relationship management, operations, and leadership. She understands the value of listening, organization, and effective communication to meet your selling and/or buying goals!

In her spare time Sarah enjoys traveling, gardening, staying active, and exploring new food adventures!

As a real estate professional, I work with many local professionals and want to recommend those that I have found to give exceptional service. Here are a few of my top choices, please be sure to tell them I referred you! Thank you! - Sarah Milley