Property taxes are a fact of life and knowing what your in for as early as possible is the key to managing this expense. Here are some key questions to ask about your property taxes.
What is the assessed value of the property?
Note that assessed value is generally less than market value. Ask to
see a recent copy of the seller’s tax bill to help you determine this
information.
How often are properties reassessed and
when was the last reassessment done? Generally taxes jump most
significantly when a property is reassessed.
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. And in some areas, such
as California, taxes may be frozen until resale.
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?
Does the current tax bill reflect any
special exemptions that you might not qualify for? For example, many
tax districts offer reductions to those 65 or over.
