Big Rapids Real Estate

One area often confused is the amount of property taxes that will become due when tax time rolls around. There are two tax numbers to keep in mind. First is Assessed Value and the other is Taxable Value. The Assessed Value or SEV is established by the local assessor based on several factors and calculations and raises yearly. The Taxable value raises yearly also but at a different rate and the longer a parcel is owned the larger the difference between the two. The thing to watch for is when a purchase is made the parcel uncaps and the Taxable Value raises up to the  Assessed value. The new Assessed Value will once again be determined by the assessor but is roughly half of what the assessor feels the parcel is valued at. The thing to what for is if a parcel has been owned a long time the taxes can double or even triple when it is sold. The Assessed Value (or SEV) will become the Taxable Value to the new owner. Better do your math and check on this. I recently showed a repo the is priced at $99,000 but the Assessed Value was $125,000 which doubled means the taxes would be based on a home with a $250,000 value which in this caes would be about a $2,000 difference. You can come close by checking out the State of Michigan’s Property Tax Estimator: https://treas-secure.state.mi.us/ptestimator/ptestimator.asp . You just fill in the SEV of the previous owner, the County, Township and school district and the Estimator does the rest. It will show amounts for both Homestead and Non Homestead (whether or no this is your principle residence). The point is the time for checking is BEFORE you purchase.

Everyone has seen on TV and in the papers where we should all be looking for repo’s. While at times they are a great deal, other times they can be a disaster waiting to happen. First thing we need to realize when dealing wiht a repo is the seller most often will not give you sellers disclosures. Reason being the seller (usually a bank) has never lived on the property so they can’t tell you what works and what does not. That being said we really need to look extra closely as you are pruchasing as is/where is. If the pipes are all split and we don’t notice there is no one going to reimberse us after the sale. My thoughts GET AN INSPECTION!!! While both you and your agent are looking for obvious flaws an inspector is more likely to find the small hidden defects. Keep also in mind though, most inspectors will only pay the cost of their inspection should something jump up and bite you. Most inspections are under $300 which isn’t too bad when you think about the risk. Next do your due dilegence. Check legal descriptions and taxes. A little legwork before hand might save you a bunch in the long run.

Last week I heard a fellow agent telling a client that for students they should just look outside the City limits and they would be fine. That statement stuck with me and I decided to share my thoughts. Some agents are not aware that just because you leave the City limits in your search you are not exempt from zoning issues. For example a student that wants to rent to other students to help with payments. You still need to watch zoning closely. Big Rapids Township has as strict of Zoning rules as the City. Most townships are zoned and while they may not enforce them as often as the City they are still there and can be huge trouble if a home is purchased without knowing. Good rule of thought would be no matter where the search takes you, check zoning rules and be sure you are going to conform. The time to find out there is an issue is BEFORE you purchase.

Here is where I attemp to bring my thoughta to light on various subjects. First, I am not always right and Second, I always keep an open mind to new thoughts or ideas so feel free to share your thoughts with me. Thanks