5 Property Tax Questions You Need to Ask

When buying a home, there are several major expenses that one should take into consideration along with the base mortgage payment.  The most important of these is by far property tax.  This is more than likely the most expensive and it can vary greatly across neighborhood and county lines.

Before you buy, make sure to ask:

1. 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.
2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jump most significantly when a property is reassessed.
3. Will the sale of the property trigger a tax increase? 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.
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 I might not qualify for? Is the homeowner's exemption included?  For example, many tax districts offer reductions to those 65 or over or if it is your primary residence.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.