A property tax search is an essential aspect of home buying. Property taxes can have an impact on monthly mortgage payments and unpaid taxes may be carried over to a new owner. Because of this, it is essential that a home's tax history is clearly outlined with a property tax search.
Property taxes are based upon the median market value of a home. The value is determined by looking at property data and the real estate value of other similar homes in a given neighborhood. This assessed value is calculated annually, and folded into a homeowner's monthly mortgage payments, if it exists.
While the assessed property value and subsequent property tax taken in previous years may have some bearing on what a homebuyer may be responsible for, it is possible to have a home's value reassessed if home values in the area have fallen.
Homebuyers need also be wary of unpaid taxes on a piece of land. Because debt attached itself to both real estate and individuals, it is essential to check prior tax records to ensure prior bills have been settled. If property taxes remain unpaid, a buyer may have to settle those debts personally before they can get a free and clear deed to a home. This may in turn impact negotiations, and give buyers levying power when it comes to a final bid on a property.
This becomes particularly important when individuals are looking to buy foreclosed properties. Individuals can have tax liens put on their property for unpaid property and personal taxes, and a lack of tax payments may be an indicator a lien may be in place.
Because consumers have three years to settle tax issues, the amount of unpaid taxes on a home can be rather high. Furthermore, unsettled mounts are subject fees and interest, meaning that a new homebuyer may unwittingly enter into a burdensome financial situation if they do not have the appropriate information to protect themselves.
Typically, real estate professionals and homebuyers would need to visit a city or town assessor's office in order to get the full tax history of a property. Additional information that could be used to reassess market value and possibly lower property tax would need to be obtained from local building departments. Information on liens would need to be obtained from local courthouses.
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The Real Estate [Suite] … gives me an edge in an industry that is quite competitive.”
ROSS RYLANCE - Keller Williams Realty, Franklin