Buying or Selling a Home/Property tax

Advertisement

Expert: - 2/27/2010


Question
QUESTION: I am interested in two houses in the same neighborhood. The price estimates of the two houses are very similar according to Zillow, eppraisal, cyberhomes, etc. The listing prices are very close too (the relatively expensive one asks for 5% more). However, there is a big difference in property tax. The one with lower listing price has 30% less property tax in 2008! Most other houses in the same neighborhood have similar taxes as the one with higher listing price. Is there any problem with the one with lower list price? What may cause its significantly lower tax?

Thanks!

ANSWER: Hi Hyhl..

I am in Los Angeles, CA... we have a very simple tax structure here... for the most part you pay 1.25% calculation off the purchase price... now that being said... if the tax assessor thinks you paid too little (got a great deal) then the tax will be the 'value' of the property, not the purchase... it makes no difference what the old owner paid..

That said, I have traveled around the country, and most counties, have a very different way of charging tax...

In North Carolina, they go on an 8 year run, the tax payers decide what the tax will be..and that could be anywhere from 2-9% or more... with little ryme or reason...

Check with the county assessor where the properties are located and find out what 'YOUR' tax will be, and how and when it will be adjusted and calculated...


Lean!!!! knowledge is power!!!

---------- FOLLOW-UP ----------

QUESTION: I am in Illinois.

I am just afraid that the tax assessor somehow believed that the house with lower listing price actually worth a lot less than other houses in the neighborhood thus a lot less tax was charged. I have seen the house twice, I did not notice any thing that could significantly lower its value.

Thanks!

Answer
HI again,

This is why you would have to go to the assessor and see what is going on, I would argue that the higher taxed house be reduced... or buy the one with the lower tax base... again you need to know exactly how that county assesses taxes... it is different around the country.. good luck

Buying or Selling a Home

All Answers

Answers by Expert:

Ask Experts

Volunteer

Connie Wildasinn-Broker,GRI,RealtorŪ

Expertise

Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!

Experience

4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!

Organizations
NAR, CAR, WCR, ABR, e-Pro, GRI, BKBIA, CHNA,SSG

Publications
Broker Agent Magazine Long Beach Business Journal Long Beach Press Telegram Signal Hill Tribune Grunion Gazette All Experts Zillow - Lead Agent - Advise Expert Truila - Advise Expert

Education/Credentials
Broker-owner, RealtorŪ, GRI,e-Pro, SSG-Short Sale Certified

Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing. 15 years running top selling agent in Long Beach, South Bay area California. Top Producer 5 years straight Re/Max, C21, Realtyworld.

Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!

©2012 About.com, a part of The New York Times Company. All rights reserved.