scpetition_valuation.pdf
Eric Neville Petitioner V City Of Harbor Springs Respondent · 26-002514-TT
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STATE OF MICHIGAN GRETCHEN WHITMER GOVERNOR DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING MARLON I. BROWN, DPA DIRECTOR 1 of 4 PROPERTY TAX APPEAL PETITION FORM VALUATION / UNCAPPING APPEAL MTT DOCKET NO. Petitioner’s Contact Information: Filer Type: Individual Local Unit of Government: First Name Eric M.I. Last Name Neville Mailing Address (No., Street, P.O. Box or Rural Route) 15622 Amherst Avenue City or Town Beverly Hills State Michigan ZIP Code 48025 Telephone Number 2693526523 E-mail Address eneville22@hotmail.com Subject Property Information: How many parcels are you appealing? 1 If you are appealing more than one parcel, are they contiguous or adjoining? *If no, you must file separate appeals for each parcel No Property Address (No., Street) 545 Arbor Street City or Town Harbor Springs County Emmet State Michigan ZIP Code 48740 Taxing Authority (City or Township) City Of Harbor Springs (EMMET) Check which of the following you are appealing: (check all that apply) True Cash and Taxable Values Please Explain the Reason for this Appeal:
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STATE OF MICHIGAN GRETCHEN WHITMER GOVERNOR DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING MARLON I. BROWN, DPA DIRECTOR 2 of 4 Petitioners appeared before the City of Harbor Springs March 2026 Board of Review and formally protested the 2026 assessment for the above-referenced property. The Board of Review denied the appeal and affirmed the assessment. Petitioners now invoke the jurisdiction of the Michigan Tax Tribunal pursuant to MCL 205.735a to seek a de novo review of the True Cash Value. Assessor's Position True Cash Value (TCV) $620,500 State Equalized Value (SEV $310,250 Taxable Value $310,250 Rationale: 1. The subject property at 545 Arbor Street is a 1,920 sq. ft. split-level residential home located in Harbor Springs, Michigan. The Assessor’s 2026 implied True Cash Value of approximately $620,500 exceeds the arm’s-length purchase price by approximately $18,000, despite the sale occurring less than twelve months prior to the assessment date. The Arm’s-Length Purchase Price Establishes a Ceiling on TCV. The subject property’s June 30, 2025 sale at $602,500 was fully market-tested: it was publicly listed, sat on the market for over 64 days, and closed only after two price reductions totaling $40,400. 2. The Harbor Springs Market Has Softened Since Purchase. Local market data from multiple published sources confirms that the Harbor Springs market has shifted in favor of buyers since mid-2025. Rocket Homes (May 2025): Harbor Springs was classified as a Buyer’s Market at time of purchase, with a median sold price per square foot of $275. Applied to the subject property’s 1,920 sq. ft., this produces an implied TCV of $528,000 — nearly $92,000 below the Assessor’s position. Harbor Prime Real Estate — Local MLS Data (2024–2025): A Harbor Springs-based broker’s analysis of local MLS data shows that in 2024, 58% of homes in the Harbor Springs and Petoskey market sold below asking price — the highest proportion since before 2021 — and 26% of listings required a price reduction before selling, the highest rate since 2020. The 2025 trend projected both figures to worsen (55% below asking; 27% with reductions). The subject property’s sale history — two reductions, 64 days on market, closed 10.7% below list — is entirely consistent with these documented market conditions. 3. The Subject Property Sold Below the Local Price-Per-Square-Foot Average The Harbor Prime MLS analysis reports the average sale price per square foot in the Harbor Springs and Petoskey market was $346 in 2024 and trending toward $388 in 2025. The subject property sold at only $314/sq. ft. — 9% below the 2024 market average — reflecting the market’s discounting of the split-level architectural style relative to preferred ranch and cottage styles. The Assessor’s implied TCV of $620,500 equates to $323/sq. ft., which actually exceeds what the market delivered at arm’s length. This is internally inconsistent with the sale record. 4. Comparable Market Evidence: The “Split-Level Penalty” The split-level architectural style of 545 Arbor Street carries a documented market penalty in Harbor Springs, where buyer preference strongly favors traditional ranch and 1.5-story cottage styles. This is demonstrated in real time by the nearby property at 540 W Summit Street: • 540 W Summit Street is a comparable split-level home of 2,650 sq. ft., located blocks from the subject property. • It sold in September 2022 for $739,900. • It was re-listed in late 2025 at $775,000, failed to attract a buyer, and was removed from the market unsold in January 2026. • It has since been re-listed at a further-reduced price of $699,000, where it remains unsold as of the date of this filing. • The current asking price reflects $263.77 per square foot — a price the market has now rejected at two successive listing prices over multiple months. If 545 Arbor Street (1,920 sq. ft.) were valued at the $263.77/sq. ft. rate the market has declined to support for a comparable split-level just blocks away, the implied TCV would be only $506,438. Petitioners’ requested TCV of $550,000 is conservative relative to what this comparable analysis strictly supports. Scenario Basis Implied TCV A Rocket Homes median — 1,920 sq. ft. × $275 (Harbor Springs median $/sq. ft., May 2025) $528,000 B Split-level comparable rate — 1,920 sq. ft. × $263.77 (540 W Summit current ask, market-rejected) $506,438 C Arm’s-length purchase price — fully marketed, 64 days, two price reductions $602,500 D Petitioners’ Request Conservative midpoint supported by all evidence $550,000 E Assessor Implied by 2026 assessment $620,500 CONCLUSION Every data point in the public record converges well below the Assessor’s implied TCV of $620,500: • The property’s own arm’s-length sale price: $602,500 • The Harbor Springs median price-per-sq. ft. applied to the subject (Rocket Homes, May 2025): $528,000 • The split-level comparable rate applied to the subject (540 W Summit): $506,438 The Assessor’s position exceeds not only what the market delivered in a fully-tested transaction, but also what every independent valuation methodology supports. Petitioners’ requested TCV of $550,000 sits above the floor established by comparable and market data, and represents a fair value We respectfully request that the Michigan Tax Tribunal set the 2026 True Cash Value at $550,000, resulting in an SEV and Taxable Value of $275,000.
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STATE OF MICHIGAN GRETCHEN WHITMER GOVERNOR DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING MARLON I. BROWN, DPA DIRECTOR 3 of 4 Jurisdictional Issues: Did you protest the assessment at a Board of Review? Yes If Yes, check which Board of Review you attended: March If No, please check the applicable reason(s): Year(s) Under Appeal: 1 Valuation Information for Each Parcel under Appeal: Parcel Number: 51-15-13-203-063 Classification of Property: Real (check one) Residential (check one) Current Assessed Value as established by the Board of Review: 620500 Current Taxable Value as established by the Board of Review: 310250 What do you believe is the fair market value? 550000 Multiply the True Cash Value by .5 and enter here. This is your contention of Assessed Value. 275000 If you believe the Taxable Value differs from your contention of Assessed Value, enter your contention of Taxable Value. 275000 Electronic Signature *Typing your name below will serve as your signature Petitioner’s Signature: /s/ Eric Neville Attorney or Authorized Agent’s Signature: /s/
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STATE OF MICHIGAN GRETCHEN WHITMER GOVERNOR DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING MARLON I. BROWN, DPA DIRECTOR 4 of 4 Fee Information: If you do not have a Principal Residence Exemption of at least 50% at the time of the filing of this petition, you are required to pay a filing fee for the filing of this appeal. The filing fee is based on the greater of State Equalized Value or Taxable Value in contention. If you are appealing more than one parcel, the parcel with the highest State Equalized Value or Taxable Value in contention will be used to determine your filing fee, plus $25.00 will be added for each additional parcel being appealed. Property tax appeal: Residential** Non-Residential SEV or TV in contention* Filing fee*** Filing Fee** $100,000 or less...........................................................................................$ 125.00 $250.00 $100,000.01 to $500,000.00.........................................................................$ 200.00 N/A More than $500,000…..................................................................................$ 300.00 N/A Does the subject property have a principal residence exemption of at least 50% as of the date of the filing of this petition? No