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For example on $700,000:
Annual fiscal year tax: 1.25% x $700,000 = $8,750
Transfer tax: $5.60 x 700 = $3,920
Best of luck!
Property tax is based upon the sale price and is also different from State to State, and County to County. In Los Angeles County, property tax is 1.25% of the sales price per year....which should be about $8,750.00 per year.
This will also be prorated through escrow on the day that you close escrow.
All the best,
There's also a lump sum for closing costs to consider. Standard closing fees are usually only several thousand dollars, but lenders fees and prorations for property taxes prepaid by the sellers can add substantially to this amount. Lenders will typically require a 10% to 20% down payment as well if youâ€™re financing part of the purchase.
1.25% is a widely used rough estimate for CA; HOWEVER, there are actually three types of tax that can apply on any specific property you come across. The following steps you through the process of finding this information:
"Estimating Property Taxes in CA"
You also might be interested in who "customarily" pays Escrow/Title/County/City transfer taxes (always negotiable by the way): http://docs.Steven-Anthony.com/ClosingCostsGuide.pdf
Hire your own representation to guide you through the negotiating process, and especially through the escrow. Seller pays for your agent!
Keller Williams Realty
However there are several different assessments that can â€“ and typically are - be added to that figure. These are called â€œdirect levysâ€ and can vary considerably. For older established areas a .25% factor is usually a bit more than it will actually be, but a good estimate. (This is where the 1.25% factor comes from.)
While the 1.25% is a good estimate, there are many areas where the direct levys can add-up to considerably more than the .25%. Thatâ€™s why is really important to get the actual tax bill and see just what those direct levys are â€“ especially if the house was build less than 15 years ago. You can get this information from the county tax collector or a local escrow company.