4 property tax questions you should ask and some basic answers

1.)  Ask your real estate agent what is the State Equalized Value (SEV) of the property?   Your agent can go to public records and get this information.

2.)  How often are properties reassessed and when was the last reassessment done? In Michigan they are usually reassessed every year in the spring.  If your home is homesteaded then the taxable value can only go up so much per year. 

3.)  Will the sale of the property trigger a tax increase? In Michigan the answer is usually less.  Your taxes will be based on the SEV (state equalized value).  Often the homeowner has lived there so long that their taxes are based on the taxable value of the property which is lower because the home is homesteaded.  The taxes can only go up so much per year even though the SEV is much higher.  Unfortunately when you buy a home the taxes are now bases on the SEV and not the purchase price. 

4.)  Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?   This is possible if the homes in the area are now selling for less than the SEV

The way to figure what you will pay in taxes is to take the SEV and multiply it by the millage rate of the city you are buying in.  For more explanation onhow Millage rates and Homestead affects your home and taxes click here.

When you buy a Wayne County home, it may have a higher SEV than a Oakland county home, Livingston county home, Washtenaw county home.  It depends on the milleage rate of that city and whether the home is homesteaded or non-homesteaded.  If you have more questions aboutMichigan millage rates, homestead, and non-homestead give me (Russ Ravary) a call on my cell (248) 310-6239 or email me