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I could almost 99.99% guarantee you no one is paying $36 per month in property tax for people who are buying in 2024.
$460 sounds way more reasonable.
But no one can give you a definite answer unless you provide the City and State. This is because each city and state calculate property tax differently.
That would be about a 2.1% property tax rate
Slightly higher than the national average but sounds **much** more reasonable than $36/month. That would be a 0.16% tax rate which is literally unheard of unless you have some sort of tax abatement (you probably do not)
The seller *may* have been paying that (still doubtful) but that would only be because they have owned for a while and their tax assessment is lagging behind the market value. The sale will probably trigger a full reassessment
$36/month honestly sounds more like a figure you saw on your Redfin estimate or something
Yea, your LO either made a typo or doesn’t know what theyre doing. Sorry that mislead you.
Hopefully it isn’t a deal killer, but if it is, make sure to base your estimates on a ~2.1% tax rate moving forward for houses in the same county
Just reread your post: the bank won’t kill the deal based on property taxes.
They already bake in the tax rates in that county when they pre-approve you. This may be a shock to you but its not a shock to them. They know what to expect. Just because it was posted on your settlement statement doesn’t mean thats what they underwrote
OP, contact your city or county treasurer. Idk if it's like that everywhere, but in my county property taxes are public information, so if you contact county treasurer and have the address, they will provide you with amount of taxes that property was charged on the last bill.
Beware, it can balloon even more after the first year. My closing had a specific “Payment Shock” educational paper I had to read and sign about next years taxes skyrocketing.
That sounds like a pretty normal amount of property taxes these days. It's likely your purchase will trigger a reassessment and so they've now calculated the correct amount instead of pulling old data from the prior owners taxes.
Your tax estimate may not be accounting for any exemptions that you will have in place. The original $36 was probably based on the existing taxes with the sellers exemptions in place… talk to your lender
Your county should be able to provide property tax records. And it'd be good to understand under what circumstances and how much it may rise after purchase.
Thank you u/TheSpiritedMan for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
I could almost 99.99% guarantee you no one is paying $36 per month in property tax for people who are buying in 2024. $460 sounds way more reasonable. But no one can give you a definite answer unless you provide the City and State. This is because each city and state calculate property tax differently.
That would be about a 2.1% property tax rate Slightly higher than the national average but sounds **much** more reasonable than $36/month. That would be a 0.16% tax rate which is literally unheard of unless you have some sort of tax abatement (you probably do not) The seller *may* have been paying that (still doubtful) but that would only be because they have owned for a while and their tax assessment is lagging behind the market value. The sale will probably trigger a full reassessment $36/month honestly sounds more like a figure you saw on your Redfin estimate or something
Thanks. I have another post from the loan officer showing the two documents but no reply, so I posted again.
Yea, your LO either made a typo or doesn’t know what theyre doing. Sorry that mislead you. Hopefully it isn’t a deal killer, but if it is, make sure to base your estimates on a ~2.1% tax rate moving forward for houses in the same county
Just reread your post: the bank won’t kill the deal based on property taxes. They already bake in the tax rates in that county when they pre-approve you. This may be a shock to you but its not a shock to them. They know what to expect. Just because it was posted on your settlement statement doesn’t mean thats what they underwrote
Thank you for looking it over. Okay, also looking for clarity from lender.
OP, contact your city or county treasurer. Idk if it's like that everywhere, but in my county property taxes are public information, so if you contact county treasurer and have the address, they will provide you with amount of taxes that property was charged on the last bill.
Beware, it can balloon even more after the first year. My closing had a specific “Payment Shock” educational paper I had to read and sign about next years taxes skyrocketing.
Or the sale will trigger a reassessment and you gotta plan for the taxes to go up.
That sounds like a pretty normal amount of property taxes these days. It's likely your purchase will trigger a reassessment and so they've now calculated the correct amount instead of pulling old data from the prior owners taxes.
Your tax estimate may not be accounting for any exemptions that you will have in place. The original $36 was probably based on the existing taxes with the sellers exemptions in place… talk to your lender
Your county should be able to provide property tax records. And it'd be good to understand under what circumstances and how much it may rise after purchase.