Hot Off The Press!!! The State of Michigan recently announced that if you have sold a home in the last four years; you are eligible for a 75% rebate on the transfer tax that was required at the time.
Buying or selling your home can be a confusing process. There are several people involved in each transaction between your real estate agent, loan officer, appraisers, title companies, engineer inspectors, etc. With all of those different services comes a lot of different fees. The challenge that most people going through a real estate transaction face is understanding what each fee is for and how it is calculated. Instead of diving deep into understanding each fee, often times the client pays whatever amount is on the bill, and like most of us, once the bill is paid it is never thought of again.
This is especially true when it comes to transfer tax. The property transfer tax is an assessment charged by both the State of Michigan and the individual county where the home was sold. When you transfer real estate from one party to another, they charge a fee as a percentage of the sales price. The seller is typically responsible for this fee.
Transfer tax is calculated as 0.0075% of the sale price of the home, or $7.50 for every $1,000 in value. For example, a $200,000 sale price would have $1,500 in transfer tax paid at the time of closing to the state. Sellers have paid this amount on every transaction unless they managed to slip through the one of the very small loop holes that deemed them exempt from paying in years past.
The good news, is that recently Michigan’s Governor, Rick Snyder, has made that loop hole much larger for a lot of sellers by signing a new law into legislation that could make anyone who sold their home since June 24, 2011 eligible for a refund from the state.
In order for someone to be eligible for the refund, the following must have happened:
- The property must be claimed as the seller’s principal residence
- The tax assessed value of the property (or, state equalized value “SEV”) must be lower in the year of the sale than the year in which the property was initially purchased by the seller
- The property was sold for a price in which a willing buyer and a willing seller would arrive through arm’s length transaction (meaning the home sold for fair market value)
The next challenge, is that most people aren’t aware of this new loop hole, and if they were aware, they struggled to find the information necessary to see if they in fact qualified.
We at The Perna Team decided to take this task into our own hands, and not just for the people that raised their hands and asked us for help.
In the beginning of 2016, the leadership committee on The Perna Team got together and spent hours discussing one question that we asked ourselves…how can we offer more value to our clients and past clients?
When we heard of this legislation being passed making people eligible for refunds, we determined that what better way to bring value to all of our past clients then to spend the 420 hours (and still counting) it took for our administrative team to physically go to the clerks office of each city in our metro area and digging through all of our past sales in the last four years to see who is eligible.
So far we have determined that 217 of our past clients will be receiving a refund from the state for a current total of $226,837! And we still aren’t done!
Finding out who is eligible took a lot of time and was a big project, but that is only step one. For those that are eligible, we are also printing and filling out all the necessary paperwork and mail in the forms to the state. Only think we need from those eligible is their signature. 6-8 weeks later a check from the state will arrive!
If you haven’t been contacted by us yet, don’t worry…we are still working hard to collect the necessary information and will be reaching out soon.
We do all of this not because we have spare time, but because we are so deeply committed to our current and past clients to providing the greatest level of service imaginable. We want to be the only real estate agent you think of whenever you or anyone you know ever has a real estate need for the rest of your life!
That being said, if you know of anyone that has sold their home in the last 4 years and would like to know if they too qualify, please have them contact us at (248)886-4450 or fill out the form below. We would be more than happy to treat them the same way that we treat you!
We would love to hear some success stories from people who have received their refunds. Please write us a comment on our YouTube, Facebook, Twitter or Google+ page. We appreciate your support and look forward to serving you for years to come!