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First time home buyer...

Cuda1447

Cuda1447

Lifer
So my fiancee and I are looking for a house right now. Hoping to get something by June. We are looking at a ton of different MLS listings and there is something I don't understand. We will find two houses, with similar size and price on literally the same street with drastically different taxes.

For example, house A is 1500 sq ft for 125,000. Taxes are 2800 a year. House B is 1478 sq ft. for 127,990. Taxes are 1600 a year. They are in same subdivision two streets over. Why?!?

Its crazy because we have found a lot of really nice houses we rule out because taxes are insane, like $4500 a year. I just don't understand how there can be such a discrepancy of taxes with houses that are very similar. Anyone care to explain this to me?
 
The Save Our Homes amendment limits property tax increases for existing homeowners to a maximum of 3% a year. Homeowner B likely bought his house many years ago when prices were much lower, so he is paying taxes on only a fraction of his home's assessed value.

You will be equally screwed no matter which house you buy, because next tax year you will be paying taxes on the full assessed value of the house. Then in future years, your year-to-year increases will be limited to 3%.

Oh, it's also possible that Homeowner A isn't eligible for the Homestead Exemption. That would significanly raise his taxes.
 
Here is an actual example of what I'm talking about.

House 1: 30315 Birdhouse Drive. List Value 109,900. Sq. ft 1202. Taxes $2188.
House 2: 30307 Birdhouse Drive. List Value 110,000 Sq. ft. 1292 Taxes $1091.

House 2 is bigger, same price and HALF the price in taxes. How is that possible? They are on the same damn street.
 
Some place have lowered tax for newly built houses. Also different town have different tax rates.
 
Originally posted by: ivan2
Some place have lowered tax for newly built houses. Also different town have different tax rates.
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Most of the houses I'm looking are were built within 2-3 years of each other, at most. Is that a big enough difference for taxes to be double another house?
 
Originally posted by: Venix
The Save Our Homes amendment limits property tax increases for existing homeowners to a maximum of 3% a year. Homeowner B likely bought his house many years ago when prices were much lower, so he is paying taxes on only a fraction of his home's assessed value.

You will be equally screwed no matter which house you buy, because next tax year you will be paying taxes on the full assessed value of the house. Then in future years, your year-to-year increases will be limited to 3%.

Oh, it's also possible that Homeowner A isn't eligible for the Homestead Exemption. That would significanly raise his taxes.
Click to expand...

^^THIS^^

I lived and owned a house in FL for 20 years. My property taxes were so low it was unreal. All the houses in my area had changed owners multiple times and their taxes reflected that.
 
BTW MLS Listing.. i used to run a local network for them in nyc..

they'll list the lower tax to get you in and after you buy it.. you're sol..

some times agent will make up numbers, most agent can't calculate taxes for you
 
building upward (bigger) could keep taxes at bay. It depends on the area used... if you build outward, you will get hit.
 
http://appraiser.pascogov.com/

most counties have thier own auditor or property GIS database of sorts. the answer to all your questions lie there 8) the difference between the two properties you listed are that one has two homestead expemptions worth 50k in property value deductions and the other does not. different states have different types of exemptions. when the house is sold, the exemptions will go away unless you actually qualify for them. http://appraiser.pascogov.com/search/soh-explain.asp

the second house with the lower taxes actually is valued at a higher amount than the first one, so if you bought it and lost the exemptions, you'd owe more in taxes than the first house.



 
Another question I have. I have heard that if some of these houses are overvalued, I can get them reappraised and get the government to change the taxes on them. Problem is Ive heard that they won't necessarily do it right away, if at all. I don't want to get stuck paying $4000 in taxes on a house when the house was valued at 200k 2 years ago before the housing bubble. Now that the house is worth 130 and thats what I paid, taxes should reflect that. So how do I get the gov. to readjust that without running a huge risk on whether or not they will do it in a timely fashion?
 
Originally posted by: Cuda1447
Another question I have. I have heard that if some of these houses are overvalued, I can get them reappraised and get the government to change the taxes on them. Problem is Ive heard that they won't necessarily do it right away, if at all. I don't want to get stuck paying $4000 in taxes on a house when the house was valued at 200k 2 years ago before the housing bubble. Now that the house is worth 130 and thats what I paid, taxes should reflect that. So how do I get the gov. to readjust that without running a huge risk on whether or not they will do it in a timely fashion?
Click to expand...

You need to file a petition with your local city/township/village and they will either approve or deny you.
 
Originally posted by: BarneyFife
Originally posted by: Cuda1447
Another question I have. I have heard that if some of these houses are overvalued, I can get them reappraised and get the government to change the taxes on them. Problem is Ive heard that they won't necessarily do it right away, if at all. I don't want to get stuck paying $4000 in taxes on a house when the house was valued at 200k 2 years ago before the housing bubble. Now that the house is worth 130 and thats what I paid, taxes should reflect that. So how do I get the gov. to readjust that without running a huge risk on whether or not they will do it in a timely fashion?
Click to expand...

You need to file a petition with your local city/township/village and they will either approve or deny you.
Click to expand...

How long does that take. What do they base it on? If I get a legal appraisal are they forced to take that legitimately or can they basically just do whatever they want (keep me paying more?). Can they just stall so its not fixed for over a year? Im really worried about these things because I don't want to be paying $3000 a year on a house that should only be $1200, especially when Im budgeting for lower, more realistic taxes.

Any people with real experience with this would be awesome!
 
Originally posted by: Cuda1447
Originally posted by: BarneyFife
Originally posted by: Cuda1447
Another question I have. I have heard that if some of these houses are overvalued, I can get them reappraised and get the government to change the taxes on them. Problem is Ive heard that they won't necessarily do it right away, if at all. I don't want to get stuck paying $4000 in taxes on a house when the house was valued at 200k 2 years ago before the housing bubble. Now that the house is worth 130 and thats what I paid, taxes should reflect that. So how do I get the gov. to readjust that without running a huge risk on whether or not they will do it in a timely fashion?
Click to expand...

You need to file a petition with your local city/township/village and they will either approve or deny you.
Click to expand...

How long does that take. What do they base it on? If I get a legal appraisal are they forced to take that legitimately or can they basically just do whatever they want (keep me paying more?). Can they just stall so its not fixed for over a year? Im really worried about these things because I don't want to be paying $3000 a year on a house that should only be $1200, especially when Im budgeting for lower, more realistic taxes.

Any people with real experience with this would be awesome!
Click to expand...


I don't have experience but you can't challenge it until you receive your tax bill and you won't receive your bill until you're the home owner.
 
Originally posted by: BarneyFife
Originally posted by: Cuda1447
Originally posted by: BarneyFife
Originally posted by: Cuda1447
Another question I have. I have heard that if some of these houses are overvalued, I can get them reappraised and get the government to change the taxes on them. Problem is Ive heard that they won't necessarily do it right away, if at all. I don't want to get stuck paying $4000 in taxes on a house when the house was valued at 200k 2 years ago before the housing bubble. Now that the house is worth 130 and thats what I paid, taxes should reflect that. So how do I get the gov. to readjust that without running a huge risk on whether or not they will do it in a timely fashion?
Click to expand...

You need to file a petition with your local city/township/village and they will either approve or deny you.
Click to expand...

How long does that take. What do they base it on? If I get a legal appraisal are they forced to take that legitimately or can they basically just do whatever they want (keep me paying more?). Can they just stall so its not fixed for over a year? Im really worried about these things because I don't want to be paying $3000 a year on a house that should only be $1200, especially when Im budgeting for lower, more realistic taxes.

Any people with real experience with this would be awesome!
Click to expand...


I don't have experience but you can't challenge it until you receive your tax bill and you won't receive your bill until you're the home owner.
Click to expand...


The bill will not usually show up until the next fiscal year. When you purchase the house, the property taxes that have been paid by the previous owner will be prorated.
 
So you pay those prorated taxes for 6 months. Then I get my tax bill for the next year, if I challenge it at that point and can win will the taxes go down for that year, or will I have to wait ANOTHER year?
 
Originally posted by: Cuda1447
Originally posted by: BarneyFife
Originally posted by: Cuda1447
Another question I have. I have heard that if some of these houses are overvalued, I can get them reappraised and get the government to change the taxes on them. Problem is Ive heard that they won't necessarily do it right away, if at all. I don't want to get stuck paying $4000 in taxes on a house when the house was valued at 200k 2 years ago before the housing bubble. Now that the house is worth 130 and thats what I paid, taxes should reflect that. So how do I get the gov. to readjust that without running a huge risk on whether or not they will do it in a timely fashion?
Click to expand...

You need to file a petition with your local city/township/village and they will either approve or deny you.
Click to expand...

How long does that take. What do they base it on? If I get a legal appraisal are they forced to take that legitimately or can they basically just do whatever they want (keep me paying more?). Can they just stall so its not fixed for over a year? Im really worried about these things because I don't want to be paying $3000 a year on a house that should only be $1200, especially when Im budgeting for lower, more realistic taxes.

Any people with real experience with this would be awesome!
Click to expand...

Two things you need to be aware of is that assessed value (which is used to determine your taxes) might be different than the appraised (market) value of a property. Many counties have websites for their tax assessors/collectors, so you should be able to check the assessed value of a property there.

Each state/county has different procedures for determining your property tax amount (which is typically the assessed value times the millage rate minus any exemptions (homeowner's exemption is the most common)...

In Denton County, TX, the county mails out an assessment notice around June. We usually have 30 days to protest this assessed value. This assessed value is then used when the tax bills are generated around October/November after the millage rates have been finalized.

Your best best is to see if the county the property is located in has a webpage. Just google 'XXXXX' county, state assessor. Many major cities have separate sites for tax assessors and tax collectors, so you should check both if possible. If the county doesn't have a web page, then your best bet would be to physically go to the assessor's office to research.

 
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