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.