What are the taxes like when I purchase a Detroit property?
The City of Detroit (Detroit Proper) taxes are extremely high. For an average $100K house, they can run between $1K-$10K. The reason why is because on average of just 12-24 months ago, most were appraised in the $100-$150K range and during the standard foreclosure process, the city take the homestead exemption off, which escalated the taxes after each season. When you purchase a home from a bank, taxes are ALWAYS pro-rated, meaning you have to pay the current tax bill from the last tax bill to the date of closing, and credit the seller for that bill. Taxes can be fought but can be expensive/grueling but doable.
