Probably one of the biggest questions, misconceptions and misunderstood things in real estate is how your property taxes are assessed. This is a very simple yet trick response. Unfortunately, J Muck Realty is in real estate and not able to fully answer the question. BUT, here's a fantastic resource for you to check what your taxes will be when you purchase your new home.
The fine folks at Investopedia do a thorough breakdown of how this is all calculated from a governmental standpoint too. Keep in mind, in Michigan, they can only increase your taxes by 5% per year. So if your SEV does happen to go up drastically, it may take a while for your actual tax assessment to match. Additionally, if you're buying from somebody that has owned for quite a while and therefore tax base doesn't meet the SEV, be prepared for a new amount to be your actual tax assessment as a new owner. Refer back to the State's link above to get a good idea of where you'll stand.
Assuming the amount your new home will be taxed is important to you, we highly suggest checking the State's website prior to getting an offer submitted. When an owner has been in a home for a lengthy period of time, there are certain areas that have huge discrepancies in the Taxable Value versus what the current owner is actually paying in taxes. Homes in Downtown Plymouth, Royal Oak, South Lyon and many other areas have seen drastic increases in values over the last 4-7 years. The address will not be used, below is a specific example of a home in Lyon Towsnhip was purchased in 2013.
Year Taxable Value SEV
2013 $140,840 $141,350
2014 $144,660 $144,660
2015 $146,970 $164,910
2016 $147,410 $171,760
2017 $148,730 $172,450
As you can see, the SEV and Taxable Value matched the year after purchase. But as values rose up to 30% year over year in the community, the SEV rose drastically, while the Taxable Value rose steadily. If the owner sold the home in 2018, the new buyer would go through a similar process. The day they close, they would pay what the previous owner was paying. Next tax year, it would adjust to the current SEV and then adjust by as much as 5% year over year after, regardless of what the SEV is at the time. Imagine how much worse that may be for somebody in an ever growing community like Canton Township and they buy their home from somebody that built in 1991.
Your trusted advisor through the entire transaction is your Realtor. However, your Realtor legally can not give advice or even certain information that does not pertain to real estate. We will guide you to websites such as the one in this blog, but can not legally look up the address and give you the number. Realtors are licensed in real estate, and tax information must come from an Assessor or form of CPA.