You can always check with County assessment and taxation department. I would assume you want to check on zip code 97211 which is in Multnomah county (refer to http://web.multco.us/assessment-taxation). You can check on past years tax records. If you find discrepancy in not advertised according to tax records, you can always have your realtor discuss the matters with listing realtor.
If you find that taxes actually went up, you should review the breakdown of taxes and you will be able to root cause the reason of jump in taxes.
Best of luck!
This should never happen although it is very possible if the home is new construction. The reason for this is the listing agent may have originally listed the property in RMLS sometime last year when property taxes were estimated. If new taxes were not assessed until recently this could explain why this happened.
Otherwise, it is next to impossible for a realtor to enter the wrong property taxes into RMLS unless he or she physically overides the entry. This is because RMLS autofills the property tax section of the listing based on the property tax ID number.
I never like my clients to encounter these types of surprises! The best person to ask about this situation is the escrow officer. The next best source is the listing agent.
If applicable, the described property is receiving special valuation based upon its use.
Additional rollback taxes which may become due based on the provisions of the special
valuation are not indicated in this listing.
Do you think it has to do with something the previous (almost previous) owner was doing?
CA is much easier on the tax side. Here in Oregon there is literally no rhyme or reason for taxes from one property to the next. If it were similar to CA it would be a much easier situation with purchases. Here in Oregon you can have properties on the same block with same floor plan etc that are drastically different for taxes. Our system makes no sense.
Heather - our tax people don't work uber fast here. This transaction hasn't closed yet and the property is not likely to be assessed in time for 2011 taxes let alone right at closing. Your state may work differently but in Oregon the county changes taxes in September or October after a contract has been recorded - maybe. More than likely they won't make any changes (if any) until next September or October of 2012.
Heather Paul, Realtor
(424)625-1037 or (310)586-0364
If after they all look into the situation for you, if the bottom line is that you will truly have these extra expenses then you will have to decide if you want to proceed with the purchase and take on the extra expenses or back out of the purchase. If you back out, make sure you ask if you would lose your earnest money. You can still back out and decide losing your earnest money is worth it to you.
I'm curious, did you use a real estate broker for your home purchase? If so, you have hired them to work for you. Put them on the task of finding out the explanation or if it is a mistake. If you did not choose to work with a Realtor then you may want to consult an attorney to help give you guidance on your options after the lender and title company provide you with their explanations as the increase in taxes. Hope this helps.
I'd check wiht your agent and see if they can find out where the information came from.
What can I do about it at this point? I definitely hadn't budgeted this extra expense (having to pay $2,000 more now and with the additional $200 in monthly fees). What are my options?
Thanks again! I'm feeling pretty stressed about this!
Thanks everyone for your responses. Here's a little more information:
House wasn't on the market for very long - maybe a week and was listed in early April 2011. It isn't a short sale or new construction. No major construction has been done on it recently (at least that i know of). Does that help?
Another possible explanation is if you are purchasing a short sale home where the seller has stopped making payments for quite some time. There may be no reserves and a lien against the property for back taxes owed. This type of lien is attached to the property so a future buyer can be responsible for paying them. I have had this happen to clients purchasing short sale homes that were on the market for quite some time. In this case you would be paying back taxes owed as well as the next year's taxes all up front at closing.
But, to echo the others please contact your real estate broker and lender to work this out for you. They can double check the title report, etc. and give you a true explanation that we can only speculate. Good luck! I would love to hear what the answer is if it gets straightened out for you.
I like where a couple of the other responses are coming from - it could be that a tax deferral of some sort may happen at a future date (like for farm deferral or forest deferral). I do agree that there isn't enough information to determine what has happened or is happening.
With the state of our economy here in Oregon, I would be extremely skeptical of taxes being lowered unless there is a valid reason. Farm deferral, forest deferral - these are things you typically apply for. If the seller split off a lot or something along those lines you may not see any real change. It's not typical for anyone to have absolute certainty of what taxes will be in October when we are still in May. Be cautious and expect that taxes won't change.
Janeese Jackson, Principal Broker
Real Estate Resource
As Melton said below, this could be due to a "Special Assessment" which govern over improvements to neighborhoods - normally you're going to find this in general upgrades for a neighborhood, such as street lighting, curbs, sidewalks, drainage systems and other items which benefit the community as a whole. If the rise came from a Special Assessment, that is considered a lein on the property and is easily consumed by the buyer. Due to the Bancroft Bonding Act these improvements can be paid for over time, rather than all at once. Once the lien is paid, the taxes drop to whatever the current value is (in your case should be about $1,125.00). That mark of course is decided every year by the assessor and will rise (or fall) accordingly.
The first thing I would do is to find out why the difference came about - when the difference came about - and how much longer it will last. You can do that by looking up the tax history of your property and calling or writing to the tax assessors office. The tax assessor must send notice of any significant assessed value change to the owner of the property, in October - so perhaps looking at last October's records would be where to begin. The owner can file a petition with the Board of Property Tax Appeals, but the deadline for that is December 31, following the October letter. The date for that is now long gone.
You did not say if you went through a Realtor for this purchase. If you have closed on the home you are financially liable regardless of the origination of the fee. Before knowing your next step to take, it would be wise to find the history / truth behind the happening. That knowledge will allow you to better understand your next course of action.
Best of luck to you.
from closing to June 30th
Depending on your lender you may be paying a full year of estimated tax towards your escrow account -
Well there are two ways that I have seen this same situation with taxes. Is this a newer home and the taxers are only based on the lot...? Did your property have a special assesment due to having chrismas trees or some other type of vegitation or animals on the property?