Admin

Prepaid Taxes a Lure to Buyers?

By
Services for Real Estate Pros with Sevick Law PLLC
In this time of increasing property taxes, as I discussed in this post, and lengthening days on the market lots of seller are trying to "do one better" and see what they have to offer to move their home. 

In addition, not just the sellers are seeing what they can do, buyers are asking for more all the time since many sellers are expected to be desperate.  This article discusses just what is occurring in the market and why the taxes are such an issue that they are now being a part of the negotiations in home sales.

Comments(5)

Show All Comments Sort:
Brad Andersohn
Retired Executive Director of Education at eXp - Boulder Creek, CA
ActiveBrad - 707.646.1876
Not a bad idea in a market that is controlled by the buyers, (like mine)!! Great information Chris, thanks for sharing!
Mar 27, 2007 03:18 PM
Catherine Myers
Windermere Bay Area Properties - Walnut Creek, CA
Walnut Creek, CA Real Estate

we're even seeing sellers offering a years worth of HOA give or take.. I haven't seen taxes being offered yet.

 

Mar 27, 2007 03:23 PM
Christopher Sevick
Sevick Law PLLC - Ann Arbor, MI
Real Estate Attorney

Catherine-

I guess I should have mentioned the HOA & Condo dues too.  You make a good point.  We are seeing deals written now that I am reviewing where the HOA is paid through December 31, 2007 or similar.   The issue with taxes is that once sellers pay them any refund they receive back is "found" money.  So, once they are paid it is a great bargaining tool for the Buyer to use.  We see it more often here after Summer taxes are paid, but we can always select "no proration" and have the Buyer "win".  

It helps too where the Buyer has little reserve and the Seller will not/can not provide a large credit for closing costs.   

Mar 27, 2007 03:31 PM
Terry Lynch
LAR Notary and Closing Services - Saint Clair Shores, MI
I have had buyers ask for waived tax prorations many times when cash to close is an issue, its a good way to get around lenders limitations on seller concessions since they wont show on the HUD
Mar 28, 2007 04:35 AM
Tim Wade
RE/MAX Realty Champions - Wolfeboro, NH

We are seeing more and more of these kind of incentives as the market slows. 

Please tour our website WWW.REINNH.COM

Browse and comment.

Jun 13, 2007 11:19 PM