Property Valuation
Michigan's Principal Residence Exemption (PRE) from certain school taxes requires:
AThe homeowner to be over 65
BThe property to be the owner's primary residence✓ Correct
CThe property value to be under $300,000
DThe owner to have lived there for 10+ years
Explanation
Michigan's Principal Residence Exemption (PRE) allows property owners to exempt their primary residence from a portion of the school operating tax levy. The property must be the owner's primary residence on May 1 of the tax year.
People Also Study
Related Michigan Questions
- Which exemption under the federal Fair Housing Act allows a Michigan owner to sell their single-family home without using a real estate agent in a discriminatory manner?Fair Housing
- Michigan's Principal Residence Exemption (PRE) reduces a homeowner's school operating tax millage by applying the exemption to what percentage of the property?Property Ownership
- A Michigan seller's property has a taxable value of $155,000. They are claiming the PRE (Principal Residence Exemption). The total millage rate is 48 mills, of which 18 mills are school operating. What is the annual tax bill with the PRE?Real Estate Math
- A Michigan lender requires a borrower to establish an escrow (impound) account for taxes and insurance. The primary benefit to the lender is:Finance
- In Michigan, the Principal Residence Exemption (PRE) reduces:Finance
- Michigan's Board of Review allows property owners to appeal their:Property Valuation
- The ADA (Americans with Disabilities Act) requires Michigan commercial property owners to:Fair Housing
- Michigan's Wetland Protection Act requires that property owners obtain a permit before:Environmental
Key Terms to Know
Capitalization Rate (Cap Rate)
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Study This Topic
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →