the main thing to remember is that taxes are based on assessed value and not purchase price. This is something mnay buyers are not aware of. Take for instance a short sale: Buyers think that taxes are based on the short sale or foreclosure purchase price, when in fact, taxes are based on assessed value. Also, please keep in mind that a property will be newly assessed after every sale, independent of the January 1st assessment date.
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Your real estate resource,
The folks below are correct. The taxes are based on last years obviously higher "assessed" values and if your buying a foreclosure, you can bet the prior owner lost homestead exemption which inflated the taxable amount by $25K. Regardless, I would encourage you to call me for a free private consulation. My firm is a direct lender and we offer many loan programs at very competitive rates.
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In Miami-Dade County the taxes are not based on sale, especially if the sale is obtained through a foreclosure. What they do is, tax the property on teh assessed value, if there are not other comparables that have sold under a "normal" slae then they would use that assessed value.
You also have to keep in mind that property values are assessed at the beginning of the year so in essence you would be apying the remainder of the year at the $6,000 level.
I hope this helps you.
Florida Realty of Miami
The same happened to me today! I am pre-approved and was looking forward to purchasing my first home in Homestead Florida and my lender would also not approve me because of the high taxes previously on the home!
"The Ribenboim Team", I just used the calculator link you posted and entered the amount of the home I wished I would have been approved for and taxes show as being about $1000 + less but this is only an approximate estimate not an actual one.
Honestly, I don't think my lender would budge if I appeal to them. They are pretty much set to "no".
It is all based on what you can afford and qualify for. Taxes are configured in debt / income ratio.
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