Wayne county property tax

17 Replies

Hi all,

I've recently purchased a property in Wayne county (not the city of Detroit) where the sale price was $77,000. The property has an assessed and taxable value of $55000. This property was originally purchased in 2003 for significantly more (the previous loan at least was 120k), so I'm guessing the taxes are based on the old value of the property, which make it much higher than it needs to be.

Is this something where I can contest the property taxes? If so, does anyone have a recommended process I should follow? (I know there is something on the web about this, but if you lovely folks have any shortcuts or advice to make my appeal more successful, I'd love to hear them).

Thanks,

James

i just went through this. i am not saying i know the process, but went through this.

the "claim" period is between feb and march for livonia and westland. you go to the cityy and state your case. they reject you 99% of the time. step 2 is to go to the lansing office and present your case again. we got appraisals for the one house that was assessed at 150k.

lansing may or may not reverse your city's initial decision. that's all i know.

@George P.

Ouch, that sounds painful. Is there a business you can pay to deal with that mess? I'm happy to pay a one-off fee to get reduce the taxes forever

@James De Silva Maybe attend a Renegade Detroit Investors RE Club meeting to find that person. Good luck.

Originally posted by @James De Silva :

Hi all,

I've recently purchased a property in Wayne county (not the city of Detroit) where the sale price was $77,000. The property has an assessed and taxable value of $55000. This property was originally purchased in 2003 for significantly more (the previous loan at least was 120k), so I'm guessing the taxes are based on the old value of the property, which make it much higher than it needs to be.

Is this something where I can contest the property taxes? If so, does anyone have a recommended process I should follow? (I know there is something on the web about this, but if you lovely folks have any shortcuts or advice to make my appeal more successful, I'd love to hear them).

Thanks,

James

The assessed value is supposed to be 1/2 of fair market value.

I appeal all of the properties I buy and have had great success I took one from $78,000 assessed value to $9500 while the actual value was rapidly increasing. My appraiser said there was no way I was going to get anymore reduction when I was at $41,000 assessed value two years ago.

What city are you in?

@RichardDunlop The property is in Westland MI.

That's amazing though, can you share how you managed to do that?

Originally posted by @James De Silva :

@RichardDunlop The property is in Westland MI.

That's amazing though, can you share how you managed to do that?

 Richard is in Detroit. Westland may not have the same opportunities available. They are both Wayne County though... It doesn;t hurt to try

This guy came to the Oakland Reia a while back. I remember it was inexpensive to kick off the process then it was hands off while he managed the process. He takes a percentage at the end so you know he won't take the job unless it's worth it. http://www.overtaxedproperty.com/ Haven't used him so no personal enforcement.
Originally posted by @Joshua Woolls :
Originally posted by @James De Silva:

@RichardDunlop The property is in Westland MI.

That's amazing though, can you share how you managed to do that?

 Richard is in Detroit. Westland may not have the same opportunities available. They are both Wayne County though... It doesn;t hurt to try

 I've not done Westland before but I'd do it. I've done 8 different cities and most of them are the same. 

Most of the small cities pretend they can't change the assessment but tell you up front that MTT will change it. (Michigan Tax Tribunal) 

You have to appeal it at the local level first in order to appeal it to MTT.

The local city is hoping that you won't take it to MTT.

Originally posted by @Richard Dunlop :
Originally posted by @Joshua Woolls:
Originally posted by @James De Silva:

@RichardDunlop The property is in Westland MI.

That's amazing though, can you share how you managed to do that?

 Richard is in Detroit. Westland may not have the same opportunities available. They are both Wayne County though... It doesn;t hurt to try

 I've not done Westland before but I'd do it. I've done 8 different cities and most of them are the same. 

Most of the small cities pretend they can't change the assessment but tell you up front that MTT will change it. (Michigan Tax Tribunal) 

You have to appeal it at the local level first in order to appeal it to MTT.

The local city is hoping that you won't take it to MTT.

 And you can do this for Rentals?

On another note, I am getting ready to buy a primary residence in the city and the taxes are ridiculous, so I will definitely be looking into this.

Thanks!

Originally posted by @Joshua Woolls :
Originally posted by @Richard Dunlop:
Originally posted by @Joshua Woolls:
Originally posted by @James De Silva:

@RichardDunlop The property is in Westland MI.

That's amazing though, can you share how you managed to do that?

 Richard is in Detroit. Westland may not have the same opportunities available. They are both Wayne County though... It doesn;t hurt to try

 I've not done Westland before but I'd do it. I've done 8 different cities and most of them are the same. 

Most of the small cities pretend they can't change the assessment but tell you up front that MTT will change it. (Michigan Tax Tribunal) 

You have to appeal it at the local level first in order to appeal it to MTT.

The local city is hoping that you won't take it to MTT.

 And you can do this for Rentals?

On another note, I am getting ready to buy a primary residence in the city and the taxes are ridiculous, so I will definitely be looking into this.

Thanks!

Yes all property residential or commercial. Deadlines vary from city to city Detroit is the earliest cut off February 15 other deadlines vary through to latest I think is March 31 of each year. 

i tried westland and livonia. i even spoke to the tax lawyers that apparently make money off this process. they all said said:

Originally posted by @George P. :

i tried westland and livonia. i even spoke to the tax lawyers that apparently make money off this process. they all said said:

At the City level they all say NO!

Except Detroit, Detroit will give a little hoping you wont take it farther.

what i was confused about was the fact that 3-4 tax attorneys looked at the assessed value, looked at the comps and said, "i can't save you any money on this, it's within their estimates". they did that for all 16 that we had at the time.

my question is, if they could not do ANYTHING for me, how do these lawyers make any money? how do they pay their bills?


On another note, I am getting ready to buy a primary residence in the city and the taxes are ridiculous, so I will definitely be looking into this.

Make sure you look into the NEZ tax abatement, last I checked most of Detroit still qualifies.

Originally posted by @George P. :

my question is, if they could not do ANYTHING for me, how do these lawyers make any money? how do they pay their bills?

A couple of questions/ answers: Maybe they want the easy ones that they can cut to one third and aren't wanting to work on your property because they might only get a reduction of $5000 in the assessed value.

Are the values fair in your estimation?

Are you buying below market?

Your market is much more stable and appraisable than the markets I'm having great success in. The more in Flux a market is the more the appraisal value is nebulous.

My appraiser lives in Livonia I'll PM you some more tips.

Originally posted by @Richard Dunlop :
Originally posted by @George P.:

my question is, if they could not do ANYTHING for me, how do these lawyers make any money? how do they pay their bills?

A couple of questions/ answers: Maybe they want the easy ones that they can cut to one third and aren't wanting to work on your property because they might only get a reduction of $5000 in the assessed value.

Are the values fair in your estimation?

Are you buying below market?

Your market is much more stable and appraisable than the markets I'm having great success in. The more in Flux a market is the more the appraisal value is nebulous.

My appraiser lives in Livonia I'll PM you some more tips.

 yes, i am buying well below market. for example, i have one in westland, got it for 72k. they estimated at ~98k. houses around comp up to 120k. my taxes are over 3k.

got another for 68k. they estimated at 150k since there is no house like that within miles of it. we were able to lower it ourselves to 125k. the tax guy was like "there's no way to save money on this house"... so, i am totally confused of how the process works.

Originally posted by @George P. :
Originally posted by @Richard Dunlop:
Originally posted by @George P.:

got another for 68k. they estimated at 150k since there is no house like that within miles of it. we were able to lower it ourselves to 125k. the tax guy was like "there's no way to save money on this house"... so, i am totally confused of how the process works.

Your success with that one proves your Lawyer tax advisor was wrong. It is worth trying even if the experts say it can't be done.

I sent you a PM with a couple more tips There are many more

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