Principal Residence Exemption Changes - Senate Bill 349

Principal Residence Exemption Legislation Unanimously Passes Senate

Today, the Michigan Senate voted 38-0 in support of legislation providing a fair process when it comes to their property taxes.

Senate Bill 349, sponsored by Senator Dave Hildenbrand (R-Lowell) creates two Principal Residence Exemption (PRE) filing dates; one on June 1st, and the other on November 1st. Additionally, this legislation allows bank-owned properties to retain their PRE so that buyers can qualify at the lower rate of taxation. This is particularly important since foreclosures have flooded the market in recent years.

Senate Bill 349 now heads over to the House for consideration.

Copyright Michigan Association of REALTORS®. Reprinted with permission.

IF THIS BECOMES LAW WHAT DOES IT MEAN?

Currently, Michigan property owners have to file a principal residence exemption form by May 1 to get lower primary home taxes for the full year. If you miss the May 1 deadline or you purchase a house that wasn't a primary home after May 1 you will pay the higher non homestead taxes until the following year. If this bill becomes law the new deadline for your summer tax bill (the much higher bill) will be June 1 and November 1 for the winter tax bill. In short, it will save the home purchaser money if you buy a non-homestead (vacant or non primary residence) home after May 1 and intend to occupy the home as your primary residence.

Exemptions for bank owned properties.

This also appears to be a major tax break for lending institutions and banks that can file an exemption to receive the homestead property tax rate (primary home rate) for vacant assets that are currently for sale. This also could allow for purchasers to qualify for their mortgage based on the lower tax rate and qualify for a slightly more expensive home.

Here is the most relavent portion of the bill:

An owner of property may claim 1 exemption under this section by filing an affidavit on or before May 1 FOR TAXES LEVIED BEFORE JANUARY 1,2012 OR, FOR TAXES LEVIED AFTER DECEMBER 31, 2011, ON OR BEFORE JUNE 1 FOR THE IMMEDIATELY SUCCEEDING SUMMER TAX LEVY AND ALL SUBSEQUENT TAX LEVIES OR ON OR BEFORE NOVEMBER 1 FOR THE IMMEDIATELY SUCCEEDING WINTER TAX LEVY AND ALL SUBSEQUENT TAX LEVIES

You can read and/or download the full 27 page Senate Bill 349 by clicking here:
http://www.legislature.mi.gov/documents/2011-2012/billengrossed/Senate/pdf/2011-SEBS-0349.pdf

 

UPDATE: APRIL 26, 2012: Yesterday, the Michigan House of Representatives voted 109-1 in support of legislation providing a fair process when it comes to their property taxes. The bill now heads to the Governor, where we expect his signature before May 1st.

UPDATE #2: MAY 1, 2012: PRE Enhancement Legislation Signed by the Governor 5/1/2012 Today, Governor Snyder signed legislation providing homebuyers a fair process when it comes to their property taxes. Senate Bill 349, sponsored by Senator Dave Hildenbrand (R-Lowell) creates two Principal Residence Exemption (PRE) filing dates; one on June 1st, and the other on November 1st. Additionally, this legislation allows bank-owned properties to retain their PRE so that buyers can qualify at the lower rate of taxation. This is particularly important since foreclosures have flooded the market in recent years.

Below are a few FAQ’s regarding the new law:

1. Does the legislation take effect this year?
A. Yes. The new law moves current May 1st PRE filing deadline to June 1st of this year.

2. How does it work?
A. If a homebuyer purchases a Principal Residence and closes on or before June 1st, they can take advantage of a significant tax break by filing for a Principal Residence Exemption.

3. When is the additional filing date?
A. November 1st. This allows for tax relief in those communities that still collect a portion, if not all of their non-homestead mills, on the December tax bill.

4. If my client buys after June 1st this year, what can they expect?
A. If a homebuyer purchases a home after the June 1st filing deadline, and their local tax authority collects all non-homestead mills on the spring tax bill, their property taxes may not reflect the exemption until the next tax bill. If however that local tax authority collects a portion of the non-homestead mills on the winter tax billing cycle, the homebuyer can file for a PRE before the November 1st and exempt themselves from any non-homestead mills collected on the December bill.

5. What about the foreclosure provisions?
A. Banks have the option of maintaining the home’s Principal Residence status by filing a Conditional Rescission. By maintaining this exemption status, it’s the expectation that borrowers will be able to qualify for financing on these foreclosed properties at the PRE rate and begin paying the lower rate of taxation as soon as they move into the home. To make up for the lost school revenue, banks will be assessed a newly defined tax that will keep the 18 mills (which they presently pay on any foreclosed property) when a property can no longer qualify as a principle residence. It is important for those REALTORS® working with bank clients to let lenders know about the change and communicate the benefit of filing a Conditional Rescission.

Copyright Michigan Association of REALTORS®. Reprinted with permission.


If you are planning on buying a home in Leelanau County or Traverse City/Grand Traverse County you should continue to follow this bill as it could potentially become law in the near future.

Jonathan Oltersdorf
Vicky Oltersdorf
Oltersdorf Realty, LLC
Phone: 231-271-7777
E-Mail: realestate@oltersdorf.com

Suttons Bay Township Short Term Rental Regulations Rejected

Suttons Bay Township Rejects Short Term Rental Regulations

On March 7, 2012 Suttons Bay township officials voted 5-0 to reject moving forward with drafting a special ordinance to prohibit weekly home rentals in Suttons Bay Township. Some townships and municipalities in the Traverse City area have limited rentals to 30-day minimums. Officials stated at the meeting that there have only been two complaints in recent memory regarding short term rentals and there is no need to move forward with a township wide ordinance at this time.  Property owners that rent out their homes by the week, primarily in the valuable summer months can continue to do so.

You can find a map of Suttons Bay Township below.

10451 S Timberlee Dr, Traverse City, MI - SOLD

SOLD TRAVERSE CITY HOME

10451 S Timberlee Dr, Traverse City, MI - Optional Shared Water Access
LISTED & SOLD by Oltersdorf Realty, LLC on 3/19/2012
Asking Price: $174,000

This wonderfully maintained 1820 sq ft Elmwood Township ranch home offers 1820 sq ft of living area, 3 bedrooms, 2.5 baths, a living room with cathedral ceilings and gas fireplace, main floor master bedroom suite, a partially finished walkout lower level and 2.5 + car attached garage! Additional features include beautiful countryside and distant Lake Leelanau water views, A/C, and optional shared Lake Leelanau frontage with boat dockage!

159' on North Lake Leelanau - NEW LISTING

NEW LISTING

$435,000 - N Manitou Trail, Leland, MI - 159' on North Lake Leelanau

The best of both worlds are enjoyed with this exceptional 2.5 acre building site offering 159 feet of private, North Lake Leelanau water frontage and shared Lake Michigan sandy beach frontage!  An ideal vacant building site within Leland Township is enhanced by slightly elevated, completely controlled year round water views and private frontage perfect for boating and swimming! Within 2 miles of the quaint Leland Village, shops, restaurants and marina!

PLEASE CLICK HERE FOR ADDITIONAL INFORMATION ON THIS NEW LISTING!


4598 Arthur Ct, Williamsburg, MI - SOLD

SOLD TRAVERSE CITY HOME

4598 Arthur Ct, Williamsburg, MI 49690 - Close to Downtown
SOLD by Oltersdorf Realty, LLC on 3/2/2012
Asking Price: $274,100

  

This bank owned foreclosure home built in 2003 offers 4000+ sq ft of living space, 5 bedrooms, 4 baths, granite kitchen counters, hardwood floors, natural fireplace, gas fireplace, private master bedroom suite with jet tub, large 3 car attached garage, 2 furnaces and air conditioning! Fantastic Grand Traverse County location only minutes from downtown Traverse City.

W Jefferson Ave, Suttons Bay - NEW LISTING

NEW LISTING

$85,000 - W Jefferson Ave, Suttons Bay, MI 49682 - 2.8 Acre Vacant Parcel

This gently sloped ~2.8 acre building site located on a paved private drive within the Village of Suttons Bay in Leelanau County offers a wonderful mix of hardwoods and potential second floor seasonal water views!  Exceptionally large parcel enjoys a very private, tranquil setting within a short walk to restaurants, shops, marina, beach, theater and schools!  Call or e-mail for details!

PLEASE CLICK HERE FOR ADDITIONAL INFORMATION ON THIS NEW LISTING

510 Pinecrest Ave, Traverse City - SOLD

SOLD DOWNTOWN TRAVERSE CITY HOME

510 Pinecrest Ave, Traverse City, MI 49686 - City of Traverse City
LISTING SOLD by Oltersdorf Realty, LLC on 2/28/2012
Asking Price: $139,000 

This affordable Traverse City ranch home is situated just a few blocks from public beach access on West Bay, Central High School, and NMC! Features include: 1425 sq ft of finished living space, 4 bedrooms, 1.5 baths, large 2 car attached heated garage, new shingles in 2010, newer furnace and water heater, updated windows, main floor laundry, large corner lot with a private rear yard, shed, and more! Fantastic location within munutes of downtown Traverse City at the base of Old Mission Peninsula in Grand Traverse County!

2208 N West-Bay Shore Dr, Suttons Bay - SOLD

 SOLD SUTTONS BAY WATEFRONT HOME

 2208 N West-Bay Shore Dr, Suttons Bay, MI - 100' on Grand Traverse Bay
LISTING SOLD by Oltersdorf Realty, LLC on 2/20/2012
Asking Price: $315,000

 

 

Enjoy panoramic views of Stony Point Peninsula and Suttons Bay from this year round home offering 100 feet of private direct water frontage on this deep 280+ ft lot! Main floor features include an open living room with a gas fireplace, kitchen with bay views, 2 bedrooms, 2 baths (private master bath), laundry and more! Partially finished walkout lower level offers a 3rd bedroom, family room with a 2nd gas fireplace and bay views! This well maintained home also features a 2 car garage, newer furnace with A/C, and recent exterior paint. Great value for this waterfront home located only 3 miles from the Village of Suttons Bay in beautiful Leelanau County!

 

 

Fed Vows to Keep Rates Low Until 2014

Fed Vows to Keep Rates Low Until 2014

 

Daily Real Estate News | Thursday, January 26, 2012


The Federal Reserve announced that short-term interest rates will likely stay near zero for nearly three more years, a move that is expected to spillover to long-term mortgage rates for home buyers and home owners.

In August, the Fed had made a rare move to say it would keep rates near zero until at least mid-2013. The Fed said Wednesday that the economy still needs more help and it will now extend that period to 2014. 

Fed Chairman Ben Bernanke said in a news conference that the Fed isn’t happy with the modest economic recovery and that the Fed may need to take additional steps to spur recovery. He did not comment further on what those steps might be, though. 

While the economy has improved somewhat in recent weeks, Fed officials say it’s worried about “strains in global financial markets” and the still high unemployment rate. 

Some critics say that the Fed’s vow to keep mortgage rates longer won’t do enough to help the economy and the housing market. They argue that too many Americans are already unable to take advantage of the record low mortgage rates because of the tightening of lending standards. 

Bernanke shared that concern, saying that millions of home owners were unable to refinance because of damaged credit or being from underwater in their homes. 

Source: “Fed Sees Low Rates to 2014,” The Wall Street Journal (Jan. 26, 2012) and “Fed Signals That a Full Recovery Is Years Away,” The New York Times (Jan. 25, 2012)

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.

1740 Indian Woods Dr, Traverse City - SOLD

 SOLD DOWNTOWN TRAVERSE CITY HOME

1740 Indian Woods Dr, Traverse City, Grand Traverse County, Michigan
SOLD by Oltersdorf Realty, LLC on 1/20/2012
Asking Price: $89,900

This very affordable 2 bedroom, 1 bath home is situated in a convenient location at the base of Old Mission Peninsula in Grand Traverse County. Home features include: an open floor plan with cathedral ceilings, 1000 finished square feet, hardwood floors, full unfinished basement, fenced rear yard with deck, carport, and more! Only blocks to East Bay Park on East Grand Traverse Bay, Bryant Park on West Grand Traverse Bay, Traverse City Central High School, and Northwestern Michigan College!

2011 Grand Traverse County Home Sales

Stability was the key to Traverse City & Grand Traverse County area real estate in 2011. The year end results (January 1 – December 31st) have been posted in the graphs above. The home sales statistics compare real estate housing sold in Grand Traverse County from January 1, 2011 through December 31, 2011 to the same time period in 2010 and 2009. This includes the townships of Acme, Blair, East Bay, Fife Lake, Garfield, Grant, Green Lake, Long Lake, Mayfield, Paradise, Peninsula, Union, Whitewater, and the City of Traverse City.

As you will notice in the housing sales data posted above, 2011 residential real estate sold in Grand Traverse County has increased slightly compared to 2010 in terms of average selling price (+ 1.2 %) and total units sold (+1.2 %). We also saw a promising increases in residential sales volume (+ 2.4 %). The only decline we saw in the Grand Traverse County sales statistics was the median sale price dropping from $145,000 to $141,000 (-2.7 %).

This report is based upon sales information obtained from the Traverse Area Multiple Listing Service from 2009-2011. Undisclosed sales are not included in the data. This is for basic review purposes only. All attempts for accuracy have been made but cannot be guaranteed.

Jonathan Oltersdorf, Oltersdorf Realty, LLC
Phone: 231-271-7777
E-mail: jonathan@oltersdorf.com

2011 Leelanau County Home Sales

The results are in and the most commonly used word in Leelanau County real estate during 2011 was: Stability.  The year end results (January 1 – December 31st) have been posted in the graphs above. The home sales statistics compare real estate housing sold in Leelanau County from January 1, 2011 through December 31, 2011 to the same time period in 2010 and 2009. This includes the townships of Bingham, Centerville, Cleveland, Elmwood, Empire, Glen Arbor, Kasson, Leelanau, Leland, Solon, Suttons Bay, and the City of Traverse City within the southeast corner of Leelanau County.

As you will notice in the housing sales data posted above, 2011 residential real estate sold in Leelanau County has declined slightly compared to 2010 in terms of average selling price (- 5.7 %) and median sales price (-0.9 %). We saw a slight increases in residential sales volume (+ 0.4 %), and total houses sold (+ 6.5 %) compared to this time one year ago. Median sale price and average sale price has decreased in 2011 mainly due to a large number of sales of entry level affordable homes within Leelanau County. Direct waterfront real estate sales have remained strong.  

This report is based upon sales information obtained from the Traverse Area Multiple Listing Service from 2009-2011. Undisclosed sales are not included in the data. This is for basic review purposes only. All attempts for accuracy have been made but cannot be guaranteed.

Jonathan Oltersdorf, Oltersdorf Realty, LLC
Phone: 231-271-7777
E-mail: jonathan@oltersdorf.com

796 N St Joseph St, Unit 41, Suttons Bay - SOLD

 SOLD SUTTONS BAY YACHT CLUB CONDO

796 N St Joseph St, Unit 41, Suttons Bay, Leelanau County, Michigan
LISTED & SOLD by Oltersdorf Realty, LLC on 1/11/2012
Asking Price: $699,000

    

Rarely available this end unit condominium offers 2640 sq ft of living area, 3 BR’s, 3.5 tiled baths and 2 car attached garage!  The wonderful open floor plan offers living and family rooms with fireplaces, cathedral ceilings, a fully finished walk-out lower level with wet bar, private deck and patio all enjoying panoramic Suttons Bay views! Exceptional amenities include:1400 ft of frontage, deep sandy beach, pool & hot tub, amenities building, tennis courts, pond, beautiful common areas & optional marina!

2011 Leelanau County Building Permits

2007-2011 Leelanau County Building Permits

The Leelanau County Building Department is reporting that 454 permits were issued in 2011 at an estimated value of $26,897,501. That is a decrease of 3 permits (-.07%) and an estimated $2,015,527 in value (-7%) compared to 2010.

Below you will find a chart totaling permits and estimated values of construction within Leelanau County from 2008 through 2011.

Check back often as we will post the year-end 2011 Leelanau and Grand Traverse County real estate sales data within the next several weeks. This report will provide median and average sales price, total houses sold, and total volume sold for 2011 and previous years for each county!

Oltersdorf Realty, LLC
http://www.Oltersdorf.com
Phone: 231-271-7777
E-mail: realestate@oltersdorf.com

Leelanau County Real Estate Sales 2007-2011

Who sells the most real estate in Leelanau County?

Planning on buying or selling Leelanau County real estate in 2012? Experience Counts! Oltersdorf Realty, LLC has sold over $54.7 Million in Sales Volume and 163 Units (homes, vacant parcels, commercial buildings) in Leelanau County from 2007-2011! That’s 35% more volume and 37% more units than the next closest agent!

Our client’s listings are advertised through over 50 syndication partners, displaying listings on over 300 websites. In the spring of 2011 we completely rebuilt and modernized our website www.oltersdorf.com which has resulted in an increase of 55% in total visits, 413% in page views, and 182% in average time on the site compared to 2010!

We are very pleased with the overall effectiveness of our marketing strategy which has resulted in another productive sales year here at Oltersdorf Realty, LLC. 2011 year end totals resulted in a 10.4% increase in sales volume and a 21.4% increase in total units sold over 2010! We are looking forward to a fantastic 2012!

Vicky & Jonathan Oltersdorf
Oltersdorf Realty, LLC
//
Phone: (231)271-7777
Email: RealEstate@Oltersdorf.com

4000 N Lake Leelanau Dr, Lake Leelanau, Leelanau County, MI - SOLD

SOLD NORTH LAKE LEELANAU WATERFRONT HOME

4000 N Lake Leelanau Dr, Lake Leelanau, Michigan
Leland Township, Leelanau County
LISTING SOLD by Oltersdorf Realty, LLC on 12/29/2011
Asking Price: $580,000

  

100 feet of private North Lake Leelanau water frontage is enjoyed with this exceptional ranch home featuring: an open floor plan providing expansive lake views through large windows and glass door walls, cathedral ceilings, spacious master suite, 2 fireplaces, hardwood flooring, 4 covered porches, quality siding with fieldstone accents and a beautiful waterside stone patio leading to a waterfront sun deck & dock ideal for swimming, boating and family fun!

New Listing: Deb's Dish - 100A S Cedar St, Suttons Bay - Business For Sale

NEW LISTING

$53,000 - Deb's Dish - 100A S Cedar St, Suttons Bay - Business For Sale

Established Coffee Shop/Bakery business in Suttons Bay! Excellent high traffic location with loyal year-round customer base. Turn-key operation includes: all improvements, fixtures, and equipment! Now is the time to own your own Leelanau County business! Real Estate is not included.

PLEASE CLICK HERE FOR ADDITIONAL INFORMATION ON THIS NEW LISTING!

318-320 W Seventh Street, Traverse City, MI - SOLD

SOLD DOWNTOWN TRAVERSE CITY DUPLEX

318-320 W Seventh St, Traverse City, Michigan
LISTED AND SOLD by Oltersdorf Realty, LLC on 11/23/2011
Asking Price: $299,00

This 6 bedroom, 3.5 bath well designed duplex is located in a wonderful central neighborhood location within a few blocks to Traverse Citys exceptional downtown shopping district, quality restaurants, theater, bay front parks, schools, TART trail and more! East unit was fully remodeled in 2005 with a new kitchen, electrical, paint, fixtures, counter tops, appliances, and wood floors. Each unit features a main level den/bedroom and bath while the upstairs has two bedrooms, a full bath, and sitting area.