Taxes and Insurance

[Aidan Black]

This might seem like a stupid question, but how would one go about understanding the taxes or insurance on a prospective property? Is it just ballpark estimates taken into account? And are the taxes usually by zip code? Thanks!

[Kevin Sobilo]

@Aidan Black, a couple additional thoughts:

1. The responders here are correct that the assessor is a good place to start and they MIGHT have that information. However, in some places the assessor is only a repository for property information and valuations. There may be a separate tax office that deals with taxes like that, especially with delinquent taxes and tax auctions etc. They may be where you get property tax information. 

2. Whether you go to the assessor or tax claim office, the tax amounts you are given are likely the PREVIOUS years tax amounts. They may not factor in the currently approved tax increases because although those may be approved the bills may not have been sent out yet.

3. Stay apprised of what's going on in the market you invest in. That way you will know whether any taxing body is on the cusp of a tax increase. For example, my hometown just recently suffered an 84% municipal property tax increase in a single year! So, if you based your numbers on the previous year's taxes you would be surprised. 

4. Talk to your realtor. In my area, the local board of realtors creates a spreadsheet each year that allows you to plug in the assessor's valuation and select the municipality and it gives and nice breakdown of the estimated property taxes. They may have a resource like this that they can share with you. You want to have good relationships with a realtor, real estate lawyer, etc because often you need their expertise and assistance.