Home Buying in North Dallas>Question Details

Emma, Home Buyer in Chicago, IL

Property taxes - Does anybody know what happens to property taxes when you buy from a bank? Do they get adjusted to the new sale price or do they?

Asked by Emma, Chicago, IL Mon Nov 16, 2009

stay the same? I am interested in
19 Winding Lake Dr, Dallas TX 75230 but the property taxes are way too high to make an offer on it. Thanks for any information you can share.

Emma

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Hi Emma,
It would be great if the county would adjust these accordingly but they don't. You'll have to protest the assessed value - the procedure and forms for Dallas county can be found here: http://www.dallascad.org/. You usually need something to back up the value you think it should be - like the tax records for neighboring properties (can be looked up on their site) or better yet, a cma for the property from a realtor (if you're buying, your agent should already have provided this). If you have more questions or need help, don't hesitate to contact me!
1 vote Thank Flag Link Mon Nov 16, 2009
Some states like california have a law like proposition 13 that says the purchase price is what the property tax will be based on. Almost (perhaps) all other states base property tax on the property value.

If you buy in a state based on value you can try to get the assessor to agree your purchase price is the value, but they could tell you that you got it vastly under the going rate. They could agree with you.

In the end, taxes are almost guaranteed to go up every year no matter what the property values do. The town, city, or county wants your money and taxes are the way they get it. Most do not understand the concept of cutting back on spending, only increasing taxes makes sense to them. So if property values go down, tax (mil) rates will increase to get the same money from property title holders. Sorry, that is the way it is.
1 vote Thank Flag Link Sat Nov 21, 2009
Typically, you can challenge your taxes at the appropriate time of the year.... But you WILL have to qualify with current tax rates and your pmt WILL be based off the same.

Tom Burris
Mortgage Banker
DallasLoanGuy.com
0 votes Thank Flag Link Mon Feb 8, 2010
Hey Emma

The property taxes are based on the sale price.

Texas has no state income tax but it does have higher property taxes. Texas' overall tax burden is one of the lowest; ranked at 7th lowest state tax burden compared to Illinois at #20.

If you are moving your primary residence - or staying 185+ days/year - you are better off in Texas!

How low does the tax need to be to put an offer on it?

Rebekah Owen, MBA
Managing Broker http://www.BenchmarkProperties.com
650-492-5958 214-257-0193
CA#00994952. TX#0555675

Skype Me at:Rebekah_o
0 votes Thank Flag Link Mon Feb 8, 2010
GREAT QUESTION !

County are the professionals who make that decision. You need support your claim that via your executed sales agreement, and possible HUD settlement statement. OF course title company also updates county tax records of your purchase amount.

You have nothing to loss but everything to gain off your request.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com
0 votes Thank Flag Link Sat Nov 21, 2009
Emma,

Nice find....as long as you follow normal guidelines and sales sequence the previous owner (including the lender) will pay the taxes current through the closing date. In this case you are correct in that they may be based on a value higher than the sales price. You can challenge the value or hire someone to challenge the value for you normally around May/June of each year. This looks like a great property to challenge the value. Sometimes but not always for example you can take the sales contract to the tax authorities during the challenge period as "proof" of market value. They are not obligated to change the value to that level, especially in a foreclosure type situation, but this is common.

Please let us know if we can help you make the offer or if you need a list of tax rates or other information.

Bruce Lynn
Keller Williams Realty
Web Reference: http://www.dfwSnapshot.com
0 votes Thank Flag Link Mon Nov 16, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Whatever the county has this assessed for will be the value.
Many have been successful at getting their tax value lowered after closing by using their closing statement as proof of value. That takes time and your initial payments ill be based on the higher amount.
0 votes Thank Flag Link Mon Nov 16, 2009
Hi Emma,

Yes it would be so nice if the county just looked at all of the sales as they are filed and adjusted to teh sales price. I can tell you from experience, it will take a little work on your part after the close of sale. My husband and I purchased a property below the tax value and we presented the HUD1, closing statement, to the tax office and they adjusted the value to our purchase price. Now the next year they did adjust the value up which we protested with comparable sales.

I would be glad to help you with an offer on this property. Email me at LaVenda.Lee@cbdfw.com or you can call 469-688-0207.
0 votes Thank Flag Link Mon Nov 16, 2009
The local assessors office will base the taxes on the assessed value of the home. Once you purchase the home you can go to the assessors office a appeal the taxes to see if you can get them reduced.

One thing to keep in mind is that even if the assessed values have gone down, the local municipalities have become accustomed to the revenue from the taxes to run their budgets. The assessed value of the home may go down, but many municipalities are raising the multiplier to keep the taxes up.
0 votes Thank Flag Link Mon Nov 16, 2009
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