Look Out For This: Property Taxes Can Surprise You When Buying A New Home

Look Out For This: Property Taxes Can Surprise You When Buying A New Home
So, you’re in the process of purchasing a home You may think you have a handle on the home buying process, but there might be an unpleasant surprise waiting for you when you sit down to close the deal: property taxes.
You probably already know what property taxes are, so you might be wondering what the big surprise is here. The issue is that the number you saw on the listing might not be the number you actually pay, it could be significantly higher.

There’s A Cap On Taxable Value Increase
Property values increase and decrease over time but property taxes don’t always follow along. The formula for determining the taxable value of a home is complicated, but most counties put a cap on the taxable value of a home, let’s say 3% per year. What that means is if the home itself increases in value at a faster rate than 3% a year, the excess wouldn’t be taxable. As a homeowner this is great. As a home buyer this can lead to some confusion and a massive headache and here’s why.

How A New Home Can Surprise You With Property Taxes
If you’re looking at the listing for a home the property tax you see would based on the taxable value per year cap. When you actually purchase the home the value of the property is reassessed and the taxes are based on the new value.

Say that the home in our example above was actually increasing in value at a rate of 5% per year. For your purposes it’s like the cap wasn’t there at all. The taxes are set based on the actual value of the home and you end up paying a much more every month than what you likely saw on the MLS listing or the county website.

Of course once you own the home you will also benefit from the yearly cap on taxable value, so it’s not all bad news. Still, it’s an unfortunate little surprise that many in the process of buying a home don’t find out about until it’s too late. There’s not much you can do to avoid this, just be sure you factor it in when deciding on a home purchase.

Sit Down At The Closing Table Knowing A Home Is Worth It
There’s not much you can do about property taxes, everyone has to pay them. However, there is one thing you can do to make that pill go down a little easier. Before you finalize that deal you need to perform a full home inspection.

An independent home inspection will root out any major major issues with a home and allow you to sign that paper and pay those property taxes knowing that you’re buying a safe, secure home for you and your family.

You can’t put a price on the safety of your family, that’s why it’s so important to perform a home inspection before you sign on that dotted line. Please contact us at Super Inspection Pros. today to learn more about the home inspection process or to schedule an inspection for your new home.

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