Home Buying in Chicago>Question Details

Shelby, Other/Just Looking in 60626

why are real estate taxes NOT adjusted when buying a property in today's mrkt? It's a deal breaker when taxes are 5,000 plus on a 168,000

Asked by Shelby, 60626 Wed Oct 13, 2010


Help the community by answering this question:


Taxes are not reassessed when the market changes or when ownership changes for a property. It is up to the homeowner to appeal the taxes.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Oct 20, 2010
The reason is that municipalities still have to cover their budget. All that will happen if they lower all the assessments is that they will have to increase the tax rate. Otherwise, they would have to fire half the teachers, policemen, firemen, you get the idea.
0 votes Thank Flag Link Sat Oct 16, 2010
I don't know of any county in my area that has lowered the real estate tax... fortunately we can still protest it. It's worth the effort to protest should you decide to buy this property. Best of luck!
0 votes Thank Flag Link Sat Oct 16, 2010

My apologies, I gave you the wrong website address...so sorry! Here is the correct one: http://www.cookcountyassessor.com/understandingyourassessment
0 votes Thank Flag Link Thu Oct 14, 2010
Its funny that real estate keeps going down in value, but taxes keep going up. This is one of the biggest problems that are causing home owners to go into default on their mortgages. Not a day goes by that I dont hear a story from one of my clients about how much their taxes went up. You can try and hire a tax attorney once you close. This could help with the appeal process. Your best option, clean out all the corrupt Illinois government elected officials, and have them put a correct adjustment for taxes. But, that will never happen. So just learn to live with the fact that we are over taxed on properties for the rest of our lives.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes Thank Flag Link Thu Oct 14, 2010
Hi Shelby,

Where it's true you can always appeal your taxes, once you've closed on the property, I think it's also important you understand how your taxes are assessed.

A better understanding will not only educate you, but, will give you the ammunition you need to appeal. Click here for more information: http://www.auction.com.

Good luck!
0 votes Thank Flag Link Thu Oct 14, 2010

Too many things are tied into your Real Estate Taxes like schools and city services. If we lower the real estate taxes these services would be affected and we would have to pay higher State Income Taxes which has been discussed.
Others have already told you how to appeal your taxes. Remember taxes in Cook County are a year behind (arrears) and are re-assessed every 3 years. Do not expect taxes to go down even though home values are declining because of the reasons I stated above.
0 votes Thank Flag Link Thu Oct 14, 2010
You can protest the taxes after you purchase but don't expect them to be lowered much if at all. The municipaities have become accustom to the revenue and base their budgets off of that. The assessed values may go down, but the multiplier used will go up to keep the taxes where they are. As a matter of fact, Chicago is planning on raising the multiplier from around 2.9 to 3.3 an increase of 13%.
0 votes Thank Flag Link Thu Oct 14, 2010
That seems pretty high for $168k home. I would recommend appealing the tax assessment with your county, they will ask for sold comparables to show market value, and it may be a process. But definitely worth the effort, as it could save you a considerable amount of money in the end. Best wishes to you.
0 votes Thank Flag Link Wed Oct 13, 2010
Shelby -

Assessors don't go around lowering market value. Owners need to protest based on market values and get comps, etc. However, when you buy a property - market value has been created and the taxes should be lower with your first bill on a home.
0 votes Thank Flag Link Wed Oct 13, 2010
As soon as you close, you can APPEAL the taxes with Cook County! The forms are available online at http://www.cookcountyassessor.com and you do not need an attorney. I have helped many consumers through this process. Please feel free to contact me to help you.
0 votes Thank Flag Link Wed Oct 13, 2010
In this market 168K probably gets you twice the SF of what 168K got you 5-8 years ago so you should be happy to have more choices and get more for your money. If taxes were adjusted based on property values then people who stay in a house 10+ years would be paying perhaps double the taxes compared to when they originally bought it assuming values go up over time...........which they will start to do one of these days(years) once this finnacial mess clears up. Taxes probably should be more consistant, but the county and state are broke so don't bet on it.
If the 5K in taxes do not reflect the Homeowners Exemption then they would go down about $900 once you claim that Exemption.

0 votes Thank Flag Link Wed Oct 13, 2010
If you buy a property and feel that the taxes are unfair then hire a good tax attorney and have them protest it. Often you can get a reduction., A good lawyer will use comps just like us (Realtors) to show examples and then changes do occur,
0 votes Thank Flag Link Wed Oct 13, 2010
Unfortunately, taxes are not based on the market value, so they won't necessarily be adjusted when the market drops. $5k sounds a bit high. If you want more information on the property and what the taxes should be, feel free to reach out anytime.

Hillary Deck
Realtor - The Pinnacle Team
0 votes Thank Flag Link Wed Oct 13, 2010
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