Understanding Property Taxes When Buying a Home
Property taxes are an important factor in determining your total monthly housing costs — and they can vary significantly from one town or neighborhood to another. When searching for homes, always review the property taxes listed to better understand your estimated monthly expenses. It’s also important to note the tax year shown in a listing; if the information isn’t current, you or your agent can contact the town assessor’s office to confirm the most up-to-date figures.
As REALTOR® Magazine highlights in “Questions to Ask About Property Tax,” here are some key points every buyer should know:
What is the assessed value of the property?
The assessed value is typically lower than the market value and determines how much tax you’ll pay. Ask the seller or your agent for a recent tax bill to review the property’s current assessment.
How often are properties reassessed in this area?
Most towns reassess annually, but areas with slower growth may do so less frequently. Understanding the local reassessment schedule can help you anticipate potential changes.
When was the last reassessment done on this property?
A recent reassessment can sometimes cause a noticeable increase in taxes, so it’s worth checking this date before making an offer.
Will the sale of the property trigger a tax increase?
In some states, such as California, taxes are reassessed when a property sells, which could raise your future payments. Ask if your area follows a similar rule.
Is the tax bill comparable to other homes nearby?
If the tax amount seems unusually high, it might be possible to appeal the assessment and lower the bill.
Does the current tax bill reflect any exemptions you might not qualify for?
Some tax reductions apply only to certain homeowners — such as seniors or veterans. Be sure to confirm whether these exemptions apply to you.
By taking a closer look at property taxes early in your home search, you can make informed decisions and avoid surprises after closing. Your real estate agent can help verify this information and ensure you have a clear picture of your ongoing expenses.
Contact Steve Oates Realtor - NH, ME & MA with any questions at: soates@alandrealty.com
