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5 Property Tax Questions You Need to Ask

1. What is the assessed value of the property? Note that assessed value is generally less than market value. Your Realtor can provide you with the tax records on the homes you are interested in and will review them with you before you make an offer.

2. How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property.

4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?

5. Does the current tax bill reflect any special exemptions that you might not qualify for? For example, does the current owner have a homestead exemption that makes the taxes lower than they would be for a subsequent owner?  Are there assessments being paid on the taxes that could be paid in full at closing if included in the purchase contract?

Reprinted from REALTOR^Ò Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^Ò.  Copyright 2005.  All rights reserved.  Amendments and additional information provided by Liz Maule.

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