WHAT SHOULD I KNOW ABOUT PROPERTY TAXES BEFORE BUYING?

WHAT SHOULD I KNOW ABOUT PROPERTY TAXES BEFORE BUYING?

Property taxes are one of those expenses buyers sometimes overlook when they’re focused on the purchase price.

And that’s a mistake.

Because the house may cost one amount…

but owning the house costs more than the purchase price.

Your Property Tax Bill Matters

Property taxes are generally based on the value of the property and the taxing structure where the property is located.

But here’s something important:

Property taxes vary dramatically by location.

And the amount currently being paid by the seller isn’t necessarily the amount you should assume you’ll pay forever.

Changes in ownership, assessments, exemptions and local rules can affect the tax situation.

That’s why I want you looking at property taxes before you decide what you can comfortably afford.

Don’t Just Look at the List Price

Let’s say you find two homes:

Home A — $400,000

Home B — $425,000

At first glance, Home A looks cheaper.

But what if the property taxes, insurance and other costs are significantly different?

The monthly cost of ownership may not look the way you expected.

That’s why I want you looking at the whole financial picture, not just the price on the listing.

Ask These Questions

Before buying, ask:

  • What are the current property taxes?
  • Are there exemptions currently being applied?
  • Could the taxes change after the purchase?
  • Are there special assessments?
  • Are there local tax considerations I should know about?
  • What should I budget for going forward?

Your lender can help estimate taxes as part of your monthly payment.

And depending on where you’re buying, your real estate attorney, title professional or other local professionals may also have an important role in explaining the tax process.

And Remember…

Property taxes aren’t optional.

They’re part of the cost of owning the home.

So when we’re figuring out what you can comfortably afford, I want property taxes included in the conversation.

Don’t shop based on the mortgage payment alone.

Have a Question?

Buying a home comes with a lot of questions. You don’t have to figure everything out on your own.

Have a question about something you read here? Want to talk through your situation? Or just not sure what your next step should be?

I’m happy to help.

Schedule a Time to Talk With Karyn

No pressure. No obligation. Just straight answers.

Prefer to just send me a question?