Do Your Property Tax Research Before You Buy A Home

Do some property tax research before signing your final mortgage papers. Know what you are getting into so you can plan your budget accordingly. Your real estate agent should be able to help you find answers to your property tax questions.

Property tax research you should do

Find out the assessed value of the property. This is the starting point of your research. The seller can provide you with last year’s tax bill. Be aware that the property tax assessment value is usually less than the market value.

The sale of the house may cause a tax increase. The amount you pay for the home may affect the assessed value. Ask your agent if this may be the case for your home.

Find out when the property is due for reassessment. Many times, property taxes go up when a home is reassessed. Again, your agent may know if this applies to you.

Compare the assessed value to other homes in the neighborhood. If there is a significant difference, you may be able to appeal the assessment and get your property taxes lowered.

Don’t forget that, among other deductions, your federal and state property taxes are fully deductible on your income tax return. For more on tax deductions, see this article on home tax write-offs.