It’s natural for the sale price of a home to loom large in your mind. But don’t forget to look at what your property tax bill might be.
What is the assessed value of the property?
Assessed value is generally less than market value. A recent copy of the seller’s tax bill will help you determine this information.
How often are properties reassessed in this area?
In general, this will happen annually, but properties in areas of slower growth may be reassessed less often.
When was the last reassessment done on this property?
Most significant tax increases on an individual property can be linked to when that property was last reassessed.
Will the sale of the property trigger a tax increase?
Depending upon where you live, the assessed value of a property may increase based on the amount you pay for it. And in some areas, such as California, taxes aren’t allowed to increase until the property in question is resold.
Is the tax bill comparable to other properties in the area?
If not, it might be possible to appeal the assessment and lower the rate.
Does the current tax bill reflect any special exemptions for which I might not qualify?
For example, many tax districts offer reductions to those individuals 65 and older.
What are Special Taxes? Special Taxes refers to property tax generally on a New Sub Divisoin or New Area. This is when Sewers, Streets and Water are needed for the area and the city creates a "special tax" for these until paid off. Some parts of the country just charge more for the lot, but locally in Wichita KS and Surrounding for Real Estate the city creates special taxes with Bonds to help enable growth so the builders do not upfront all the development costs and spread it onto the homeowner for many years.. These are generally paid off within 12-17 Years by paying extra monthly billed like regular general taxes and are paid monthly with your mortgage or bi annual when due. As an example there might be $12,000 in special taxes billed at $100 per month for 13 Years. In year 5 the house is being sold the new owner would assume the remaining balance of the 8 years unless they paid them off early.
Please Consult with your CPA these may be tax deductible
Call Bryan or Denise today for other answers to your real estate questions at 316-932-2500 or email at Realty4less@sbcglobal.net