Home Buyer Tool Kit đź›
Here are some helpful home buyer resources in the Ann Arbor area.
Not seeing what you are looking for?
Mortgage Calculator
Pro Tips :
use the property tax calculator link (just below this section) for an accurate snapshot of what your updated tax bill will be.
it’s a safe bet to assume ~$1,000 annually for home owners insurance. This number will be higher if the home is located in a flood plain.
Talk to your lender about mortgage rates for an accurate snap shot of today’s market
For a more precise mortgage payment estmate AND closing costs, reach out to your lender.
Property Tax Estimator
When you buy a home from someone who has lived there for 30 years, you’ll notice that their property taxes are very low. Here’s why…
When you sign a Property Transfer Affidavit at your closing, this triggers a new “uncapped” assessment which is based on the current State Equalized Value. For example, if the fair market value of your home is $400,000, your SEV will come in at $200K, which is the number used for taxes. After that, there will taxable value will be capped at a 5% annual increase / inflation rate, just like the previous owners.
In short, looking at what the previous owners were paying in taxes isn’t all that helpful. This link is perfect for property tax assessment and doing research on different cities and townships in Washtenaw County.
Pro Tips :
Be sure to double check the municipality and school district
The SEV is 50% of the sale price
If this will be your primary residence, your taxes will be the Homestead rate (cheaper) versus the non-homestead, which is what investors pay.
Ann Arbor Flood Plain Map
Buyers need to know that the city of Ann Arbor and Washtenaw County have taken a multifaceted approach to protect homeowners. It would be nearly impossible to buy a house in 2023 and be unaware of the risks you are taking re: floodplain exposure.
That being said, let’s start with the basics. A floodplain is defined as the land adjacent to a stream or river that has a >1% of annual flooding. The floodway (see below) is the more dangerous type of floodplain, as it involves streaming water that can cause more severe property damage.
There are five tributary streams mapped as floodplains:
Allen, Malletts, Millers, Swift Run, and Traver.
Local areas with the highest concentration of floodplain markings include the Old West Side, Arborview, Brookside Condos, The Northside, Pittsfield Village, and parts of downtown Ann Arbor. If you live in any of those areas, you don’t need to panic.
Even though the Huron River is a beast of a body of water, the benefits of having natural floodplains far outweigh the low grade risks. If there is a pink or green star next to your house on this MAP, you’ll want to pay close attention to any standing water in your backyard, and take good care of your foundation / retaining walls. Prevention is name of the game if you live near a floodplain.
Pro Tips :
Ann Arbor approved a $9 million Hazard Mitigation Plan in 2022 that has been approved by FEMA. This is aimed at mitigating long term risks, and being strategic about our natural resources/housing development plans.
You’ll notice that many of the city-owned parks and preserves reside on one of the floodplain hotspots. This is not a coincidence and is very savvy urban planning. Our B2B trail, Broadway Dog Park and Swift Run Dog Park are all classified as floodplain lands. This is a classic example of turning a risk into an asset.
Water quality is improved in areas where natural cover acts as a filter for runoff and overbank flows; sediment loads, and impurities are also minimized. Natural floodplains moderate water temperature, reducing the possibility of adverse impacts on aquatic plants and animals. Floodplains also act as recharge areas for groundwater and reduce the frequency and duration of shallow flooding.
STREAM Permit Search
Did the seller pull permits? This is where you go to find out.
Everyone has heard horror stories / urban myths about the city forcing DIY-ers to tear down decks, re-do finished basements, or pay massive fines. In reality. this instances are pretty rare.
The purpose of checking on permitted work should be to find out if it was done by a professional and “by the book.” Sometimes sellers will avoid permits because of property tax implications. A brand new kitchen or expansive deck will increase your property value, and likely trigger a 5% increase.
The only times to that not seeing permits can be a red flag is for additions, electrical work, or on any house that you intend to use as an income property.
Pro Tips :
Check th seller disclosures to see if they checked the box on puling permits for repairs
For repairs that don’t have a permit paper trail, consider having a licensed vendor (electrician, plumber, etc) take a look at the work completed during your inspection period.
Not finding permits for repairs isn’t as big of a deal as it sounds.
Zoning / Historic Neighborhoods
Zoning has always been a hot topic in Ann Arbor. Guidelines / rules in neighborhoods like the Old West Side, the City District, and Old Fourth Ward are the closest thing to an HOA for these historic homes.
The city has great resources, and very helpful staff members available by phone or email to answer your questions.
Zoning / Historic Neighborhoods Guide
Pro Tips
If you are considering an AirBnB or short term rental for your property, note that there are restrictions in the historic districts.
Repairing windows or siding in historic districts can be more costly because of rules about preserving the original character of the home.
