Detroit, MI real estate: buy or sell with a local AXEN agent
In Detroit, the water bill has a drainage charge based on how much hard surface on your lot sends rain into the sewer. Homes get an automatic 25% credit, and you can look up your own hard surfaces on the city's map. If you buy a rental, you must register it again in your name.
What are the popular neighborhoods in Detroit?
Popular Detroit neighborhoods include Corktown, Midtown, Indian Village, Boston-Edison, Palmer Woods and East English Village. Each one prices differently, so ask your agent for recent sales in the ones you like.
Also near Detroit:
What should you know before buying a home in Detroit?
In Detroit, file your Principal Residence Exemption by June 1 or November 1 so you skip up to 18 mills of school tax. Your taxable value uncaps the year after you buy, so do not budget on the seller's tax bill. If you buy a rental, register it again in your name.
The rules that apply everywhere in Michigan are on the Michigan page. These are the Detroit details that trip people up.
Get pre-approved →- Your taxes reset the year after you buy. In Michigan, a sale makes the taxable value uncap in the next calendar year. Your bill can jump well above what the seller paid. Plan on that when you budget.
- Claim the Principal Residence Exemption. If it will be your main home, file Form 2368 with the assessor. File by June 1 to count for the summer bill, or by November 1 for the winter bill. It takes off up to 18 mills of school operating tax.
- Check the drainage charge. Detroit water bills charge for the hard surfaces on your lot, like roofs and driveways. Homes get an automatic 25% credit. Use the city's hard surface map to see your number before you buy.
- Buying a rental? Register it again. When a rental is sold, the new owner must register and apply for a new rental registration. Renting without it can mean blight tickets. Old fees and fines stay with the past owner.
- Appeal in February or March. Detroit has 3 steps. An optional Assessors Review in February, then the March Board of Review, which you must use first, then the Michigan Tax Tribunal.
What should you do before selling a home in Detroit?
In Detroit the seller pays Michigan's transfer tax of $3.75 for each $500 of price, plus Wayne County's $0.55 for each $500. A warranty deed must be tax certified by the Wayne County Treasurer before it records. If the home was your main home and its SEV did not go up since you bought it, you may get the state tax back.
The seller pays the transfer tax.
Michigan law puts the state tax on the seller at $3.75 for each $500. Wayne County adds $0.55 for each $500. Together that is $8.60 for each $1,000, paid when the deed records.
You may get the state tax back.
If it was your main home and its SEV at sale is not higher than when you bought it, you may qualify for a refund. File Form 2796 with Treasury within 4 years and 15 days of the sale.
Taxes must be certified first.
Wayne County will not record a warranty deed or land contract until the Wayne County Treasurer certifies the property taxes are paid. Clear old taxes early.
Detroit real estate questions
Who pays the transfer tax in Detroit?
The seller. The state tax is $3.75 for each $500 and Wayne County adds $0.55 for each $500. Buyer and seller can agree the buyer pays, but the law puts it on the seller.
How do I appeal my Detroit assessment?
Start with the optional Assessors Review in February. The March Board of Review is required before you can go to the Michigan Tax Tribunal. The board decides if the value is fair, not how much tax you pay.
What is the drainage charge on my water bill?
It pays for handling rain and snow melt that runs off hard surfaces into the sewer. It is based on your lot's hard surface. Homes get a 25% credit for downspouts that drain onto the lawn.
I bought a rental. Is the old registration good?
No. The new owner must register and apply for a new rental registration. Renting without it can bring blight tickets.
Will my taxes stay the same as the seller's?
No. A sale uncaps the taxable value in the next calendar year. Ask for a tax estimate on your price, not the seller's bill.
Buying or selling in Detroit? Talk to a local agent.
An AXEN agent who works in Detroit answers your questions for free. No cost to talk. No pressure to sign anything.