Home Buying in Michigan>Question Details

Ray, Home Buyer in 48202

what does homestead mean?

Asked by Ray, 48202 Mon Apr 6, 2009

If a bank owned property shows that the Homestead percentage is 100% and the property tax is $8000. Does that mean that the tax will be less or more when this property is sold? And if so, by what percent is it usually changed, if any?

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Ray,

Here is a copy of the Homestead Affidavit Document http://www.michigan.gov/documents/2368f_2605_7.pdf

While your lender will be using current taxes which are based upon the current Homestead percentage, actual taxes for 2009 may be higher or lower than those indicated. Your best source would be the local government assessors office.

You can use the State of Michigan property tax estimator to see the approximate difference, This varies by school district and County. http://www.michigan.gov/taxes/0,1607,7-238-43535_43540---,00.html

They now have a video on the website above that should answer all your questions.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Mon Apr 6, 2009
You may want to get in touch with little Bill.

He's at the Ponderosa.
1 vote Thank Flag Link Mon Apr 6, 2009
Ray,

There is more to this question than meets the eye, and the answer lies in few variables.

If you are speaking about a specific property, it would be best to directly contact an agent that understands Proposal A from 1994, knows the market in which the property is located (and can access the data on that specific property), and can then guide you further. We can give you advice and theoretics all day long ... I don't think that is what you want/need, if you have a specific property pinpointed.

Let me know if I can be or assistance.

Derek Bauer, Associate Broker / Realtor
Real Estate One
Derek@DoorToDreams.com
http://DoorToDreams.com
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Mon Apr 6, 2009
Homestead exemption must be filed by May 1st each year. If a property went into foreclosure as "homestead 100%), then chances are it will default to homestead when you buy/close on the house. If this is your first home, you can file the homestead exemption at closing - the title company should have the form in the closing package. If you are selling a home and buying another, right now there is a waiver that allows you to have 2 properties in homestead exemption under special circumstances. If you haven't been able to sell your existing principal residence and it is currently listed on the market for sale. You must file a special exemption form by 5/1 or you will lose your exemption for one of the houses and could face pretty extreme penalties. Contact your local title company, lender, township/city for more information.
0 votes Thank Flag Link Mon Apr 6, 2009
Dear R,

In Michigan you have Homesteaded and non-homesteaded taxes. Basically "homesteaded" means that you live in the property as your primary residence. When you get the homestead exemption on your property you will get a reduction in your taxes. When you look at Michigan rates you will see homestead and non-homestead rates. There is about a 30% reduction in your taxes when you claim the homestead exemption.

Hope that helps!
Web Reference: http://www.crestico.com
0 votes Thank Flag Link Mon Apr 6, 2009
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