Annual Homestead Filing Chokes Mid-Year Real Estate Sales
By Michael Delaware, REALTOR®, CRS, GRI
(North Sky Realty LLC)
In Michigan, the 'Homestead Exemption' filing for a principle residence can only be filed and take effect on May 1st every year. What this means to the home buyer is that if the home has the homestead exemption intact, then it will transfer officially to your name in May, with no difficulties. However, if the home is vacant, whether it be a bank owned property or an estate sale, or the seller have moved out of state, the Homestead Exemption in Michigan can come off at any time at the decretion of the County Assessor. What this means is that the property taxes on that home will increase by an average of 40% for the non-homestead status. This factor alone can kill a sale. For example, a buyer who is approved by a lender up to say $150,000 can put in an offer on a house at say $145,000...
Comments
3