Hidden Costs of Buying a Home in Michigan + Pop-Up Tax
Posted by Michael Perna on
The hidden costs of buying a home in Michigan typically add 3% to 6% of the purchase price to your first 12 months of ownership — roughly $12,000 to $24,000 on a $400,000 home, on top of down payment and standard closing costs. The single biggest is the Michigan property tax pop-up under Proposal A, which can raise year-two taxes by $1,500 to $10,000+ depending on how long the seller owned the home. Other major hidden costs include prorated taxes at closing, first-year escrow shortage letters, water and sewer liens in Detroit, Oakland County drain assessments, HOA capital contributions and special assessments, clay sewer line failures in pre-1970 Metro Detroit homes, and the statistically likely first major repair within six months of closing.
Why…
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