Lothrop Street Renovation

[48202]

Is the Real Estate One advertisement for this home misleading? It the residence sells for $229,900, one might assume that it might be assessed, for tax purposes, at one-half of that amount. The current millage rate for home owner occupied residences in Detroit is, I believe, 68.87 mills. That implies an annual tax of about $7700. Real Estate One states the annual tax is $508. Does that refer to some older assessment or am I confused?

Taxes listed in real estate listings are what the current owner currently pays.

[Hamtragedy]

Taxes listed in real estate listings are what the current owner currently pays.

As far as I'm concerned this is also a primary reason of Detroit's real-estate collapse of the early 2000s / Great Recession. Gramma or Auntie living in the house since the 60s or 70s only paid 500 in taxes. Then it sells in 1995 for 100K in Grandmont. Problem over the next 6 or 7 years with balloon mortgages, prop taxes, ever-increasing insurance, tripled natural gas rates, doubling of gasoline, and collapse was imminent well before the rest of the country.

It's somewhat simplified, but I always thought the real-estate people should have levelled with prospectives what the new taxes would be based on the asking price, if not publish that on the listing.

[48202]

As far as I'm concerned this is also a primary reason of Detroit's real-estate collapse of the early 2000s / Great Recession. Gramma or Auntie living in the house since the 60s or 70s only paid 500 in taxes. Then it sells in 1995 for 100K in Grandmont. Problem over the next 6 or 7 years with balloon mortgages, prop taxes, ever-increasing insurance, tripled natural gas rates, doubling of gasoline, and collapse was imminent well before the rest of the country.

It's somewhat simplified, but I always thought the real-estate people should have levelled with prospectives what the new taxes would be based on the asking price, if not publish that on the listing.

This isn't a Detroit thing. As far as I know, real estate listings everywhere list the current taxes. In Michigan, blame the Headlee Amendment for the big jump in taxes between owners.

Ignoring Headlee for a moment, taxes are based on assessed value. Don't ever assume assessed value is current. Cities and towns can reassess whenever they get around to it.

Bottom line, Renf did a quick calculation for guesstimating taxes. Anyone can, and should, do the same.