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You should ask some questions about
property taxes when looking to buy a home, including:
-What value is used to assess the
property taxes? You might think that the current market value would be
used, but that's not always the case. In many areas, circuit breaker
programs limit the amount to which you can be taxed. Another approach is
to apply the tax rate on a portion of the assessed value and not the
full worth of the property.
-What are the current owners paying in
property taxes? Is this consistent with neighboring properties of
equal size and condition. If it is different, why?
-How will property taxes affect
your ability to get a mortgage? Lenders look at many different measures
to qualify you for a mortgage. One of the most important is the
percentage of the monthly income in relation to the amount spent each
month for mortgage interest, principal, property taxes and insurance,
also called your PITI. Lower property tax bills free up more money for
other parts of the PITI.
-Has the tax bill been appealed. Values
by tax assessors can be questioned if the owners feel that the estimates
are too high -- for example, if the math was wrong or an incorrect
schedule was applied. Local assessment offices can help you with your
appeal.
-Are you or the current owners eligible
to an exemption?
-Can property taxes be deferred?
-What are the income tax benefits of
property tax payments?
- Will the sale trigger a different tax
bill than the current one?
-How often are assessments made? |
