Estimating property taxes

[Pete Hornstein]

Ok I keep looking at deals and running numbers and I keep wondering if I am estimating high on property taxes. Many deals I see the assessed values are lower, sometimes much lower than the sale price. So I estimate my own property taxes going forward. Example: sale price is 300,000 so I take 300,000/3 and multiple by a slightly higher tax rate. Say the bill says it’s 8.4% I use 8.5%

So 300k / 3 = 100k x .085 = 8500/yr

Instead of the property currently being assessed at 240,000 with the 8.4% tax rate.

Whats everyone else using or doing in this situation ?

[Theresa Harris]

@Pete Hornstein  The property taxes should be included with the listing or available online.  The assessed value is almost always lower than the appraised value.  The appraised value is what you need to look at for buying.  Assessed value is only for tax purposes.