Question: We’re looking at a couple of similar houses in the same city, but the difference in property taxes is roughly $ 2,000. Their taxable value is almost the same; within 10,000 US dollars. Why such difference?
BUT: I am often asked this question. Taxable value is the amount from which your property taxes are calculated (mill rate times taxable value equals tax). There are several reasons why taxes can be different. First of all, it is the PRE (Basic Residence Permit Exemption), formally known as the estate tax and the non-estate tax. If you reside in this property as your primary residence and claim it as such, you receive lower property taxes. If you are an investor or applying for another property as your primary residence, you will pay a higher property tax rate, typically around 40% more, give or take, depending on the city / town. Another possibility is that one of the properties may have additional liens included in taxes, such as unpaid water bills or garbage bills. It is a fact that most buyers and even seasoned homeowners are unaware of the school districts. Most cities or towns (not all, but the vast majority) have more than one school district. Some communities in Macomba and Auckland County have up to 8 different school districts within a city or town. This is important because each school district has its own property tax rate, which means up to 8 different property tax rates within a city or town. It can also be the reason for the difference in real estate taxes.
Special warning: I see this all the time, so it’s worth repeating over and over again. I cannot repeat enough how important this is. If you own a house, apartment, or other real estate, what happens to it when you die? Too often, when I am called to put up for sale real estate to the executors or heirs of the property (people close or close to you, whom you have entrusted to run your business); After asking a few questions, I quickly discovered that the late owner hadn’t done any real estate planning at all. Guess what? Now your loved ones or those you care about should start a second career in disposing of their estate by going into a will. If you have ever had to do this for someone, you would know that it is not fun and takes a lot of time, effort and energy. Now let me clarify, I am not a lawyer and I do not give you legal advice, I am simply presenting to you my professional opinion based on many years of experience. What I really discovered after talking with the executors or heirs was that the house / apartment either did not belong to the trust, did not have a contract of life property (contract of the ladybug), an agreement to terminate the right of claim, or there was no will. I have witnessed how a simple piece of paper, such as the Termination Act, signed during your lifetime and locked in a safe box, made life much easier for those who manage property while preserving real estate (house, condominium). from the will. I highly recommend that for those of you who have not done any estate planning, pick up the phone and call a lawyer who specializes in estate planning after reading this article. If you do not know anyone, do not hesitate to contact me and I will put you in touch with a lawyer I trust very much. (Note that it is NOT expensive to draft wills and documents by a lawyer.)
Market news: The June housing market report for Macomb and Auckland counties is as follows. In Macomb County, prices rose more than 14%, while prices in Oakland County also rose nearly 22% over the month. Residential building / apartment on the market fell again. Market holdings in Macomb County were down more than 37% and market holdings in Oakland County were down more than 39%. The average number of days on the market was 16 days in Macomb County and 18 days in Oakland County. Closed sales in Macomb County were up nearly 24%, while closed sales in Oakland County were up more than 24%. Closed sales are up again by a large percentage from last year due to the closure of covid last year. We have, on average, stocked houses for one month or less; A 6 month supply is considered balanced. (All comparisons are made from month to month, from year to year.)
Steve Meyers is a Realtor at RE / MAX Metropolitan at Shelby Twp. and is a member of the RE / MAX Hall of Fame. Contact him with questions at 586-997-5480 or Steve@AnswersToRealEstateQuestions.com. You can also visit his website at AnswersToRealEstateQuestions.com.