masterlock, Home Buyer in Detroit, MI

Detroit Michigan: What to do about a property purchased for $12k that has 2013 taxes due of $2,500? The tax is more than 20% of the value of the home!

Asked by masterlock, Detroit, MI Tue Mar 25, 2014

Hi everyone, I have 4 properties that I purchased in 2013 and each one has 2013 taxes due. The problem is the amount of tax is quite excessive compared to the value of the property. I have been reading up on getting the property re-assessed but I'm afraid I may have missed the deadline for this year. I was expecting to receive a tax bill in them mail but recently found out that my mail wasn't getting delivered because there was too much snow in our neighborhood so this has thrown a wrench in my plans to try and get the tax reduced. Can anyone offer any suggestions on what I might do? I'm looking at a $9,000 tax bill right now which is crazy when you consider the price paid for the properties. Thank you in advance for your help!

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Haig Istamboulian’s answer

You should have done your due diligence BEFORE purchasing the property. I know this isn't going to help you now, but I hear thiis so often from people purchasing properties at the County Tax Auctions, or on the market via a Quit Claim Deed.

Your options are the following;

1. List the homes for sale, cheaply, and state that the homes will be sold via a Quit Claim Deed and you can quit claim deed them to the new buyer. I list these types of homes with FULL disclosure, stating exacty what the back taxes are so buyers know exactly what they are getting into. Believe it or not, many buyers don't mind as long as the property is priced right.

2. Pay the back taxes and then list the homes at a higher price to see if you can sell them to at least try to break even or make some money.

3. Don't pay anything and let the homes be foreclosed upon again by the county.

4. Fix the properties up and put tenants in them and we can try and sell them as investment properties.

5. Donate the properties.

I can list them for sale for you and give you my opinion on pricing once I review everything. I may even have a buyer for the properties if priced correctly. My contact information is listed below so either call or email me with the property addresses and the tax liabilities on each.

Thank you,

(248) 379-6547
1 vote Thank Flag Link Tue Mar 25, 2014
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