October 28, 2025 - Sonic Loans

Livonia vs. Garden City: Differences in Closing Costs

When purchasing or selling a home in Michigan, one often-overlooked expense is the closing costs — the fees, taxes, and other charges that must be paid when ownership transfers. In the metro Detroit area, two nearby suburbs — Livonia, Michigan, and Garden City, Michigan — may look similar at first glance, yet local factors can influence the final closing-cost tally. While Michigan’s statewide averages provide a baseline, subtle local differences can drive cost variances.

1. Michigan Baseline for Closing Costs

Across Michigan as a whole:

Buyer closing costs typically run around 2 % to 5 % of the home’s purchase price. Treadstone Mortgage+2Redfin+2
For sellers, the average closing cost is about 4.15% of the sale price (excluding real estate commissions) in many parts of the state. Clever Real Estate+1
Transfer taxes (state + county) account for about 0.86 % of the sale price in Michigan. Clever Real Estate+2The Pernateam+2
Buyers should budget additional fees like appraisal, title insurance, recording fees, and prepaid taxes/insurance. RE/MAX, The Collective Agency+1

In short: if you are buying a home in this region, expect to budget roughly 2 % to 4 % of the purchase price in closing costs (excluding down payment). If you’re selling, expect around 4 % (plus commissions) in many cases.

2. Local Nuances in Livonia

Because Livonia is one of the larger suburbs west of Detroit, there are specific items to pay attention to:

A local home-buying guide for Livonia explicitly says “you must factor in … closing costs” as part of the overall budget when buying a home in Livonia. Christian Financial Credit Union
A title/closing firm in Livonia notes that the closing company costs typically fall within 2%–5% of the home loan amount. embassytitle.com
Given that Livonia has many mid- to larger-sized homes compared with smaller suburbs, the dollar amount of closing costs (even at the same percentage) can be higher in absolute terms.

So for a home in Livonia priced at, say, $350,000:

Buyer closing costs (at 3 %) might be around $10,500, though this is a rough estimate.
Seller closing costs might approximate 4% of the sale price, or about $14,000, before agent commissions.

3. Local Nuances in Garden City

Garden City, while still part of the Detroit metro area, tends to have lower average home prices and slightly different tax/fee structures, which can influence closing cost totals. For example:

While there are fewer publicly published “closing cost guides” specific to Garden City, the broader Michigan averages (2%–5% for buyers) apply. Redfin+2RE/MAX, The Collective Agency+2
Because many Garden City homes may be in slightly lower purchase-price tiers than in Livonia, the absolute dollar amount of closing costs may be lower, even if the percentage is similar.
The local municipality’s fees (e.g., certain permit or Certificate of Occupancy fees) may add upstream costs when selling, though these are not always large. For example, Garden City lists a $200 “Certificate of Occupancy” fee associated with inspection/closing matters. gardencitymi.org

So for a home in Garden City priced at, say, $250,000:

Buyer closing costs (at 3 %) might be about $7,500.
Seller closing costs (4 %) would be about $10,000, again before commissions.

4. Key Points of Comparison

Here’s a side-by-side look at factors that differ or might differ between Livonia vs. Garden City in terms of closing-cost impact:

Typical home price tier	Generally moderate to higher (in Metro Detroit)	Slightly lower average price tier
Buyer closing cost % range	~2 %–5 % of price (statewide)	Same range (statewide)
Seller closing cost %	~4 % average before commissions (statewide)	Same baseline percentage
Absolute dollar amount for typical home	Higher due to higher price levels	Lower due to lower purchase price
Local additional fees/permits	Standard Michigan transfer/recording/title costs	May have smaller municipal fees (e.g., Garden City Certificate)
Flexibility/negotiation	Similar across suburbs—buyer/seller may negotiate who pays which fees	Similar possibilities

5. Recommendations for Buyers & Sellers

Get a detailed estimate: A local lender or title company can produce a “closing-cost estimate” for your specific property in Livonia or Garden City.
Budget by percentage: Use the 2%-5 % rule for buyers and ~4% for sellers as a rough planning tool.
Negotiate closing-cost credits: Buyers can ask sellers to cover part of closing costs (often in tighter markets). Sellers/present-paying closing costs can make offers more attractive.
Shop the title and service providers: Some fees (title insurance, closing-agent fees) can differ by provider—even in the same city.
Understand local taxes: Transfer taxes and recording fees are set by the state/county (e.g., Michigan’s state & county rates), so they don’t vary much between Livonia and Garden City. ocmi.us+1
Watch for municipal fees: As noted, Garden City may require certain inspection or occupancy-related fees. Even if small, they add up.

6. The Bottom Line

Though Livonia and Garden City share the same state regulatory framework for closing costs in Michigan, differences in closing-cost experience are largely in the absolute dollar amounts (due to home-price differences) and local municipal fees, rather than in a different percentage structure. If you pay $100,000 more for a home in Livonia than you would have in Garden City, even the same 3 % closing cost means $3,000 more in closing fees. So the budget impact is real.

For buyers aiming to keep upfront costs manageable, a home in Garden City may present slightly lower dollar-closing-costs risk (assuming comparable property size and condition). For sellers, while the structure is similar, the higher home price in Livonia means higher nominal fees. But in both places, smart negotiation and detailed estimates can help avoid surprises.

Thank you for reading! If you enjoyed this article and want to explore more content on similar topics, check out our other blogs at Sonic Loans, Sonic Realty, and Sonic Title. We have a wealth of information designed to help you navigate the world of real estate and finance. Happy reading!

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