No doubt your Assessment will be $X so now the mortgage payment is...

True that Sally-you can give a guesstimate at best!

Fortunately, that is not how property taxes are determined in the Charlotte area... so unless there are county-wide reassessments there are not huge surprises for buyers.

Good morning Sally K. & David L. Hanson and thank you for sharing your information.

Good morning Sally and David. While a buyer may face higher taxes, nobody knows what that may be at the time of purchase. Used to be a problem with new construction in Florida when buyers were qualified based in the tax amount for vacant land, but that is an exception for another discussion. Enjoy your day!

We have to provide the estimated tax estimate for the buyers for just this reason - taxes do go up here when the house is sold - in the past some lenders were using the seller's taxes (which were limited in their annual increases regardless of improvements) and the buyer was hit hard. 

Nice to put in a good word for those 2 A/R loans specialists. Good place for a buyer to start their search...

In Georgia, back at the bottom of the market in 2012, counties had been slow to lower assessments down to the real market values.  People would buy a $200,000 home but their assessed value sometimes would remain at $500,000.  It was bad.  People could afford the home but not the taxes. They still had homes assessed at what they were valued at the peak.  So they passed a law making the purchase price the new assessed value for the year immediately after the sale.

It is how they keep their assessed values tied to the real market values.  I don't know if many other states do the same thing.  I think it's a pretty sensible idea.

If I were a lender, I'd definitely take that into account.  If a $500,000 home is currently assessed at $200,000, there's a high probability that the property taxes will get adjusted eventually.  That could really make a huge difference for some buyers as far as their ability to pay.  Tax assessments can sometimes seem to be random, but I would definitely plan on a rational re-assessment to eventually happen.

Buyers certainly need to understand these things before getting into a loan, so they can be sure they are able to afford it.  A good lender will always make sure of this for them, without trying to predict taxes.

this is exactly why we like our buyer clients (they are usually our sellers) follow our lead with mortgage lenders....some can be deal breakers...

Good afternoon Sally and David - oh yes, not all lenders are created equal.  Borrower beware!

Not many people will know that banker is Snidely Whiplash.

And none, that is none, of the crystal balls I have seen in the movies or TV have been inaccurate.

Just sayin'...

We need to partner with trusted lenders and not have to worry about bad information and wrong expectations being set.  

Sally and David you are right there is no need for guessing about taxes.  All you need to do is call Town Hall or go to a website that contains the current property taxes.  The only times I have seen the taxes be different is when the current homeowner is getting a special exception from the town because they are a Veteran, or if the property use to be a farm and got a special exemption for that.  But those instances are the exception not the norm.

I have dealt with mortgage brokers who have told people their house payment would be $xXX but they don't figure in taxes and or insurance. I think that's criminal Sally K. & David L. Hanson 

Morning Sally.

Interesting issue you have.  Around here the payments are given on the current value and taxes.  Once the assessor comes for their yearly visit the payment may change.  Otherwise I haven't heard of this one before.

Good morning Sally and David.  Here in Florida, the market value of a home is calculated each year by the property appraiser.  The taxes will be based on this value with potential adjustments for homestead and other deductions.

First ... thanks so much for the shout out and thumbs up, Sally K. & David L. Hanson ... I appreciate it greatly.

Secondly, I think this is one particular issue where my 25+ years Appraising definitely helps my clients and referral partners.  I'm constantly amazed at how many people (clients and professionals alike) just don't understand how taxes and assessments are figured.  Or how they play a part in the affordability and approval of homes.  Things that are extremely important to know.   This topic is definitely one that needs to be fully explained to clients by their Lender ... you're 110% correct on this ...

A topic that can't get too much attention, Sally ...

Gene