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Question about foreclosures, short sales and taxes. Any help?

By Billi Evans

Real Estate Agent with Murney Associates

August 11, 2010 11:45 AM

If the following scenario takes place, what can my buyers expect?

Let's say a house sells for $180,000 in 2007. The real estate taxes paid are listed on the mls as $1900 in 2009.

The house goes through a foreclosure or short sale and the new buyer pays $140,000 for it. Can the new owner expect to pay the same taxes or should the taxes be lower since this house and others in the neighborhood have sold for less recently?

By the way, I will admit up front that I'm not an expert where taxes and assessment are concerned. But I've been told that one can challenge the old assessment.

Any help or guidance to direct me on where to go to get my answer would be greatly appreciated. Thanks!

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Terry Dunshie

Home Smart Elite - Mesa, AZ

East Valley Native

I would suggest they consult a tax professional.

But what I've seen is the taxes will eventually go down, but not as fast as the market.

It depends upon how efficient your local assessor's office is.

Again, have them consult a pro, you don't want to be liable for something you said that is out of the scope of your duties.

Aug 11, 2010 11:49 AM

Susan Neal

RE/MAX Gold, Fair Oaks - Fair Oaks, CA

Fair Oaks CA & Sacramento Area Real Estate Broker

Call your local assessor's office and ask this question. It will be different in every state, and perhaps in every county.

Aug 11, 2010 11:52 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

GOODNESS YES!!!

I appealed my real estate taxes and they were lowered $1500 a year. There are appeal procedures in all of our counties in my area of MD and Northern Virginia.

I provide comps for our buyers who are appealing. It works.

Susan is right. It's different for each county in this area.

Aug 11, 2010 12:17 PM

Al Raymondi

Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL

Ormond By The Sea Florida - Home and Condo Sales

The tax people are a year behind which means that the 2009 taxes are based on the 2008 assessed value. The kicker in this whole thing is the millage rate that is applied to the value. Assessed value can come down and taxes still go up if the rate is increased. Hope I explained that so it is understandable. Best bet is to talk to the local taxing authority or assessor.

Aug 11, 2010 12:55 PM

Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Billi, nothing is automatic. Just because a buyer paid less this year than the previous owner paid several years ago, does NOT mean their taxes will be less. What will determine that is what the local county tax assessor has the property "assessed" at. If they are still at the older, higher value, then yes... your new buyer will pay the older, higher taxes. All states vary, but what I am telling you is the case here in Texas. I suggest you call your local county taxing board. Hope this helps.

Aug 11, 2010 01:40 PM

Billi Evans

Murney Associates - Springfield, MO

Thank you for the info and the suggestions. A call to the county assessor is my next plan of action. I knew the Active Rain family would be able to help.

Aug 11, 2010 04:10 PM

Lina Robertson

AMAX Real Estate - Springfield, MO

REALTOR® Serving Springfield, Nixa and Ozark, MO

Hey you....I've had several clients who were able to do this successfully in Greene and Christian Counties. Now...Christian County is beginning to take a harder look at it. They will no longer go with the amount off the HUD1. They will send the appraiser back out to reassess the property. They may not go with the sales price, but they've dropped it significantly each time so far.

Aug 12, 2010 11:41 AM

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