Michigan Real Estate Sale: Costs & Commission Explained

The personal representative can pay themselves before anyone reviews the number — a level of trust few other states extend this directly.

MCL 700.3719, 700.3721

Quick answer: the ordinary 5-6% realtor commission applies as usual, plus a reasonable compensation fee the personal representative can pay themselves without asking first, plus Michigan's real estate transfer tax on an actual sale (roughly 0.86% typically). See how this plays out for your own numbers in the Michigan probate real estate sale calculator.

Self-payment, subject to later review

Straight from §3719(1): "A personal representative may pay the personal representative's own compensation periodically as earned without prior court approval" — a level of self-directed trust few other states extend this plainly. It isn't the final word, though: under §3721, an interested person can petition the court to review the reasonableness of that fee at any time.

Hourly, services-rendered billing is common

Michigan practitioners commonly use a services-rendered, hourly approach, with the rate shaped by the nature of the work, what's customarily charged for similar services locally, the estate's size and results, time limitations, and the representative's own experience and capabilities.

Transfer tax runs about 0.86% on most sales

Michigan's real estate transfer tax combines a state rate of $3.75 per $500 of value (0.75%) with a smaller county-level rate, typically bringing the combined total to roughly 0.86% of the sale price for most transfers.

A bare inheritance is usually exempt; a sale isn't

A no-payment transfer at death is typically exempt from the transfer tax, but an actual sale for value — to an outside buyer, or even a sibling buying out the others' shares — can trigger it.

Facing probate in Michigan?

A local probate attorney can review your estate — many offer a free consultation.

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The §3719 self-payment rule and the transfer tax structure apply the same way whether the estate is administered in Wayne, Oakland, or any other Michigan county.

Sale costs and commission — frequently asked questions

Can a Michigan personal representative really pay themselves before a judge signs off?

Yes — MCL 700.3719(1) lets the personal representative pay their own compensation periodically as earned without prior court approval. This isn't the final word, though: an interested person can later petition the court to review the reasonableness of that fee.

What method do Michigan practitioners commonly use to set the fee?

A services-rendered, hourly approach is common in Michigan, with the rate set by factors like the nature of the work, what's customarily charged locally, the estate's size and results, time limitations, and the representative's experience.

How much is Michigan's real estate transfer tax on a sale?

A combined state and county rate that typically runs about 0.86% of the sale price for most transfers — $3.75 per $500 of value at the state level, plus a smaller county-level rate.

Does the transfer tax apply if the estate simply distributes the house to an heir?

Generally no — a no-payment transfer at death is typically exempt from Michigan's real estate transfer tax; it's an actual sale for value, to an outside buyer or even a sibling buyout, that can trigger the tax.

This page provides general guidance only and is not legal, tax, or financial advice. Based on MCL 700.3719, 700.3721 and Michigan's real estate transfer tax statutes. Confirm current figures with a licensed Michigan attorney or real estate professional before acting.