Property Valuation
When a Michigan property is sold, the taxable value is:
ATransferred to the buyer without change
BUncapped and reset to the SEV in the following year✓ Correct
CReduced to 25% of SEV for the first year
DFrozen at the previous owner's taxable value
Explanation
Under Proposal A, a property's taxable value is 'uncapped' when ownership transfers. In the year following a sale, taxable value resets to the SEV (50% of market value), potentially significantly increasing property taxes.
Related Michigan Property Valuation Questions
- A Michigan appraisal report prepared for a federally related transaction must comply with:
- In the sales comparison approach, an appraiser makes adjustments to comparable sales to:
- Highest and best use in appraisal is the use that is:
- Which of the following best defines 'market value' in Michigan appraisal?
- In Michigan, an appraisal must be performed by a licensed or certified appraiser for federally related transactions when the loan amount exceeds:
- In a Michigan appraisal, reconciliation is the process of:
- A Michigan home is appraised using the GRM method. Monthly rent is $1,500 and the GRM for comparable properties is 140. What is the estimated value?
- The principle of progression in Michigan real estate valuation means:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →