What to do about property taxes?

With lower property values due to our struggling economy, many homeowners have been able to take advantage of an exemption contained in the Michigan Transfer Tax Act. If your seller meets the criteria, they would be exempt from paying the state transfer tax. Following are the criteria:

The property must have been occupied as a principle residence – classified as homestead property.
The property’s SEV for the calendar year in which the transfer is made must be less than or equal to the property’s SEV for the calendar year in which the seller acquired the property.
The property cannot be transferred for consideration exceeding its “true cash value” for the year of the transfer.

For example:
If the SEV of the homestead principle residence when acquired in 2005 is $100,000 and the current SEV on the property is $90,000, then the first two criteria have been met. To establish the “true cash value” of the property, you must double the current SEV at the time of transfer. In this scenario, the true cash value would be $180,000. If the property sold for $170,000, then the 3rd criteria has been met of Exemption “u” as designated by the Michigan Transfer Tax Act.

Please call your local Real Estate One Sales Associate if you have more questions or to chat about this topic.

Selling Your Home in a Michigan Winter

Selling a home can be a daunting task in the current market. Now it is even tricker with the onset of winter. While the location of your home is the most important feature to most buyers, it is the one thing that cannot be changed. There are plenty of other factors that you DO have control over that will enhance your ability to sell.
First of all, curb appeal. When a potential buyer pulls up in front of your home what do they see? Rake up the leaves, take out the remnants of last summer's flowers and trim up the perennials. Even though it is the time of year all the vegitaion tends to fade away, a tidy appearance of what remains will be an inviting view from the street. Accentuate your landscape with the use of creative up-lighting. Also pay attention to your entryway. The front door tends to be the focal point of a home. A welcome appearance to your front door will speak volumes to those entering! Make a great first impression.
The first step inside your home needs to have "wow" factor. A clean and fresh entry is a necessity! Organization and proper clutter reduction throughout the home is at the top of the list of things every home seller must do. Remove personal items including family photos, pet beds and children's items. Decorate in neutral colors using mirrors to enhance the sizes of the rooms. Accessorize tastefully, in this case less is always more. You want a potential buyer to be able to visualize their own items in your home but if they are overwhelmed by your belongings they may not be able to imagine anything at all.
Above all else, be realistic. Price, terms and condition are all factors in the home selling equation. To help you determine what those things are, choose a professional REALTOR to assist you. A true professional will know the facts about your local market and can recommend a sound marketing plan to help get you the results you desire. Homes are selling and with the right tools and attitude, you can achieve success.