Could there be a silver lining to the increasing number of foreclosures in Michigan? Maybe. Maybe not.
The State of Michigan just changed the laws allowing foreclosures to be taken into consideration in property tax assessments. Previously the depressed sales were disallowed as aberrations. In Oakland County areas particularly hard hit by foreclosures, like Pontiac, Hazel Park and Southfield, this could result in as much as an 8% decrease in assessments.
The State Tax Commission also changed rules allowing sales studies to be based on one year of sales instead of two. The two year ruling had helped to keep assessments low during periods of rapidly increasing sales prices, but it also kept assessments high during periods of rapidly falling prices.
Combined, these two changes could have a significant impact on assessments, but most home owners who have been in their homes for more than a few years will not see any difference in their taxes because of the current cap on property tax increases.
Figuring in foreclosures and doing one-year sales studies beginning next year will mean that overall residential assessments will fall even in wealthy Oakland County for the first time in at least four decades, said Dave Hieber, the county’s equalization manager.
He predicts 7,800 foreclosures in the county by year’s end. That, combined with falling prices in other home sales, will drive down property values an average of 5%, he said.
For more information read the article from the Detroit Free Press.
[tags]oakland county property taxes, oakland county foreclosures, property taxes[/tags]
photo by Ulleskelf
Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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{ 6 comments… read them below or add one }
Dave Calderwood 08.22.07 at 9:36 pm
This is great information. John McCane said last night MI has 100,000 empty homes. Prices will still head down for at least the next 12 months. Property tax payers in MI are a little better of the other surrounding states i.e. OH and IN. Sounds like a good time to purchase a home in MI becaues, its a buyers market. Property taxpayers who have owned a home for 7 years or less should audit their property taxes. Large deductions are being handed out but you must ask.
Maureen Francis 08.23.07 at 5:53 am
Dave,
I am presuming you meant large reductions are being handed out, not deductions?
We have successfully helped many clients reduce their property taxes by supplying them with the data they needed to appear before the March Board of Review. Armed with recent sales data, they have been successful. I had my own taxes reduced with nothing more than the purchase agreement.
Yes, recent owners have a much bigger need to review their assessments. I feel it is best to check it the first year after a purchase in particular. We counsel our clients to do this.
Gerry Boughton 09.08.07 at 9:35 pm
Where can I get the value of sold condos in my area? I know one sold Feb. 2007 $100,000 lower than mine. Same footage and style. I need to get two more comparibles. Per the form from the Assessor’s Office I’ve got to submit info by Sept. 17th. Can you help me? Is there a charge?
Cora Bledsoe 09.17.07 at 9:30 pm
I’m a Realtor with ERA Bowers in Southfield who can perhaps help you with those other two comparables. No charge.
Maureen Francis 09.17.07 at 9:37 pm
Cora,
Gerry is actually from Oakland California, not from Oakland County. He needs an agent out there.
Paul Dudley 10.25.07 at 5:18 pm
What about the Pontiac board of review? In March, they met hundreds of homeowners and I’m told that they adjusted very few assessments (less than 1%). Will it be the same next year? To meet with the state tribunal, you need to pay a $65 court fee and try your luck at getting the assessment reduced. Has anyone had success with this?