Read My Lips …
By: Leslie Pandey Senior Content Writer/Editor | January 30, 2008
Today’s Wiki Wednesday Feature: Don’t Be Fooled by Listed Prices Alone
No, I’m not promising no new taxes! But if you’re thinking about buying a home, read my lips: Remember to consider the taxes. At least that’s the message coming across loud and clear in this week’s Wiki Wednesday article, “Don’t Be Fooled By Listed Prices Alone.” Written by Zully Tower, a real estate agent with Guilford Realty and Financial Services in Lakewood, CA, the article reminds would-be buyers that a home’s listing price may look appealing, but pile on the various taxes and you may be looking at more than you can afford.
Zully points out that some sellers are having to reduce their listing prices to below-market value to compete in the current real estate climate. This is good for
buyers, right? Well, yes and no. Sure, a buyer may now be able to afford a nicer house than they would have a year ago. But even if the price is lower, if the property taxes are high, the buyer’s mortgage payment may actually be much higher than if they had purchased a higher-priced home with lower taxes.
Of course, most home buyers are savvy enough to seriously consider the property taxes in their purchasing decision, but even the savviest buyers can be blindsided by the extra taxes that add up, such as city/county assessments, homeowner’s associations, and Mello-Roos taxes if you live in California. Be sure to discuss this with your lender. Looking for more info? Read Zully’s entire article here.
Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.
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Real Estate Chocolate - Ridgefield, CT Real Estate on February 2, 2008 11:11 am
Zully, what you say makes sense, however….
If the house has been marketed to the public (i.e. not a “family sale”) then the “under market value” price paid is actually the market value. If the taxes are assessed at the old above market value rate then the new homeowner will be successful in appealing the assessment and the taxes will be reduced accordingly.
This just happened to me with my own house. The tax assessor had no problem dropping my new assessment by over $100,000.
– Rob –
Dumb and Dumber | Redfin San Diego Sweet Digs on February 4, 2008 9:17 am
[...] price per square foot, physical condition, state of the seller, and location. If your property passes muster on these fronts, then it deserves a closer look and you should delve deeper. If not, dump it or [...]
DiscoverSD Travel Blog » Blog Archive » Dumb and Dumber on February 6, 2008 1:31 am
[...] price per square foot, physical condition, state of the seller, and location. If your property passes muster on these fronts, then it deserves a closer look and you should delve deeper. If not, dump it or [...]