Posted: 3/4/2007 5:41:01 AM EDT
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OK So just got my 07 property assessment. I live in Farmington Hills and also have a condo in the area (long story, in the process of getting ready to sell one) Anyway, how the heck does my property value go up when houses in my area have been on the market for months at below market value and still aren't selling... This is just stupid!!! It was about a 2 1/2 % increase but still it sucks! Sorry for the rant... I am just gonna blame this one on our wonderful Canuk in office (yeah yeah I know its not directly her fault but still) |
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Your increase is probably the result of the spread between Taxable Value (the amount that is directly used to determine your taxes) and the Assessed Value (the amount that is directly used to determine the next owner's taxes). Neither value is legally permitted to exceed 50% of the True Cash Value (TCV) of the home and property. If you do not appear before your local Board of Review (probably in the next 14 days - check your assessment), you lose all right to appeal the assessment to the Michigan Tax Tribunal (MTT) I too, am stuck with two homes right now. I'm challenging both. Only one challenge is likely to have any effect on my tax bills, but the other will affect my ability to sell the clinging-on property. I challenge tax assessments for a living, but it sometimes not worrth paying a professional to do it for you. At the hearing (Board of Review and/orMTT) it is YOUR burden to prove that the assessment is not in accordance with other properties in the taxing district and/or that the assessment exceeds the statutory restriction (not more than 50% of TCV) which may be determined using one of three different methods. For residential properties, the "market value" determination is usually the preferred method. Best come prepared with the same information that the tax assessor will certainly present (comparable sales within the past two years) and be prepared to explain why your place is a dog. I have some assessments in hand that actually have substantial DECREASES in both taxable value and assessed value. Assessors in those taxing districts realize that they would be SWAMPED with tax appeals if they weren't realistic. Other taxing districts figure only a small percentage of the citizenry will actually rise to contest the assessments, and the majority will simply perform their SHEEPLE duty and not complain. Or better yet, complain but not appeal. Or best yet, complain, appeal, but appeal too late to preserve their legal rights. If you're going to appeal, best to call into your city/township tomorrow morning! My $0.02. |
That's true. Also, even if the assessed value and market value of your home went down last year, the taxable value can go up. Why? Because of the effect of the tax cap from Prop A. That cap limited the increases in taxable value to roughly 2-3% for the last few years. In those years when the property appreciated at a rate greater than that, you enjoyed the benefit of the cap because the property was taxed at a taxable value less than 1/2 its market value. The flip side of that, however, is that because the taxable value is so far below 1/2 the market value, the assessor can increase the taxable value and you don't really have the right to protest unless the taxable value is greater than 1/2 the market value of your home. |
And for those who had purchased in the last 2 years, we are truly screwed as the local taxing jurisdictions seek to increase the taxable value their 3.7% and it bumps into the assessed value which is rising at a slower pace (should actually be decreasing substantially). Hype. |
| Check the insert that came with the assessment........"Understanding Proposal A in a declining market"...........Courtesy of the City of F.H..........clear as mud............yadda..yadda...yadda....2 prior years used for numbers......we'll see the decline in the next couple years....yeah right...... |
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You guys can look up comps at this website, it's really pretty sweet: zillow.com Look up a house by address, or punch in the zip and find a house by zooming in similar to Google Maps. Note that there's less coverage/data for rural areas than urban ones. |
There are no buyers and sellers are still demanding prices from 2-3 years ago chasing ghost profits. The only people selling Real Estate now are those of us with sellers who are realistic or didn't refit the heck out of the home to the point where they can't sell it. |
