How can I get a good estimate on taxes when running the numbers?

Investor · Atlanta, GA · Member since 2021 · 133 posts · 60 votes

Hey BP!

As I am running numbers on properties, is it safe to expect the county to match the appraised value based on the most recent transaction? Say in 2024 the county appraised a property at $530K. It's 2025 and the seller and I agree on a $700K transaction (This is an actual deal I am analyzing now btw). Does that mean that the county will reassess based on that $700k?

Taxes can feel like they are so unpredictable but I am doing my best to get ballpark what they will be. I know how to pull county tax records and look at the mill rate, but I what I don't know is what the county will appraise a home at. This would really help me out in analyzing deals/running the numbers.

I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).

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Ken M.

Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes

Quote from @John Clark:

Quote from @AJ Satcher:

Hey BP!

I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).

If you buy for $700k then the county will value the property at $700k. It's view is that you can hardly complain.

It just depends by county
Here's a property in Phoenix AZ that sold for $735,000 and they tax assessed it at $36,645

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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @AJ Satcher:

Hey BP!
As I am running numbers on properties, is it safe to expect the county to match the appraised value based on the most recent transaction? Say in 2024 the county appraised a property at $530K. It's 2025 and the seller and I agree on a $700K transaction (This is an actual deal I am analyzing now btw). Does that mean that the county will reassess based on that $700k?
Taxes can feel like they are so unpredictable but I am doing my best to get ballpark what they will be. I know how to pull county tax records and look at the mill rate, but I what I don't know is what the county will appraise a home at. This would really help me out in analyzing deals/running the numbers.
I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).

Smart approach for you to take that into consideration.
Yes, it matters a lot where the property is. Some counties reassess based on each new purchase, some every year just because, some every few years. The simplest thing to do is to call the county and ask their procedure. Keep in mind some counties assessment is not even close to what you might pay for that property. Yes, very strange.
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- AJ Satcher
  OP
  Investor · Atlanta, GA · Member since 2021 · 133 posts · 60 votes
  1y
  Quote from @Ken M.:
  
  Quote from @AJ Satcher:
  
  Hey BP!
  As I am running numbers on properties, is it safe to expect the county to match the appraised value based on the most recent transaction? Say in 2024 the county appraised a property at $530K. It's 2025 and the seller and I agree on a $700K transaction (This is an actual deal I am analyzing now btw). Does that mean that the county will reassess based on that $700k?
  Taxes can feel like they are so unpredictable but I am doing my best to get ballpark what they will be. I know how to pull county tax records and look at the mill rate, but I what I don't know is what the county will appraise a home at. This would really help me out in analyzing deals/running the numbers.
  I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).
  
  Smart approach for you to take that into consideration.
  Yes, it matters a lot where the property is. Some counties reassess based on each new purchase, some every year just because, some every few years. The simplest thing to do is to call the county and ask their procedure. Keep in mind some counties assessment is not even close to what you might pay for that property. Yes, very strange.
  
  This is the part that gets me because the county that I recently purchased a property in taxed it 32k less than what it actually appraised for. I've seen even larger discrepancies though, which can really affect how I am running my numbers.
  0 Reply
- Ken M.
  Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
  1y
  Quote from @AJ Satcher:
  
  Quote from @Ken M.:
  
  Quote from @AJ Satcher:
  
  Hey BP!
  As I am running numbers on properties, is it safe to expect the county to match the appraised value based on the most recent transaction? Say in 2024 the county appraised a property at $530K. It's 2025 and the seller and I agree on a $700K transaction (This is an actual deal I am analyzing now btw). Does that mean that the county will reassess based on that $700k?
  Taxes can feel like they are so unpredictable but I am doing my best to get ballpark what they will be. I know how to pull county tax records and look at the mill rate, but I what I don't know is what the county will appraise a home at. This would really help me out in analyzing deals/running the numbers.
  I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).
  
  Smart approach for you to take that into consideration.
  Yes, it matters a lot where the property is. Some counties reassess based on each new purchase, some every year just because, some every few years. The simplest thing to do is to call the county and ask their procedure. Keep in mind some counties assessment is not even close to what you might pay for that property. Yes, very strange.
  
  This is the part that gets me because the county that I recently purchased a property in taxed it 32k less than what it actually appraised for. I've seen even larger discrepancies though, which can really affect how I am running my numbers.
  Here's my little trick.
  I am making assumptions, and as you already know, assumptions make an *** out of you and me, so I'm careful about it but, I will go to Redfin.com, find an active listing similar to price to my target property, I will take an address like
  
  677 Holmes St NW,Atlanta, GA 30318 and I'll scroll down to Payment Calculator
  
  and I will play with the numbers to reflect my deal
  
  and that updates the taxes
  
  Now, here is where the assumption is:
  I assume Redfin tracks the tax rate by county so it should be a reasonably close number to actual.
  
  0 Reply
John Clark
Member since 2018 · 1k+ posts · 1k+ votes
1y
Quote from @AJ Satcher:

Hey BP!
As I am running numbers on properties, is it safe to expect the county to match the appraised value based on the most recent transaction? Say in 2024 the county appraised a property at $530K. It's 2025 and the seller and I agree on a $700K transaction (This is an actual deal I am analyzing now btw). Does that mean that the county will reassess based on that $700k?
Taxes can feel like they are so unpredictable but I am doing my best to get ballpark what they will be. I know how to pull county tax records and look at the mill rate, but I what I don't know is what the county will appraise a home at. This would really help me out in analyzing deals/running the numbers.
I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).
If you buy for $700k then the county will value the property at $700k. It's view is that you can hardly complain.
0 Reply
- Ken M.
  Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
  1y
  Quote from @John Clark:
  
  Quote from @AJ Satcher:
  
  Hey BP!
  As I am running numbers on properties, is it safe to expect the county to match the appraised value based on the most recent transaction? Say in 2024 the county appraised a property at $530K. It's 2025 and the seller and I agree on a $700K transaction (This is an actual deal I am analyzing now btw). Does that mean that the county will reassess based on that $700k?
  Taxes can feel like they are so unpredictable but I am doing my best to get ballpark what they will be. I know how to pull county tax records and look at the mill rate, but I what I don't know is what the county will appraise a home at. This would really help me out in analyzing deals/running the numbers.
  I am in GA if that matters any (Fulton, Dekalb, Cobb, etc).
  If you buy for $700k then the county will value the property at $700k. It's view is that you can hardly complain.
  It just depends by county
  Here's a property in Phoenix AZ that sold for $735,000 and they tax assessed it at $36,645
  
  1 Reply
Joshua ThompsonBusiness Member
Accountant · Melissa, TX (Remote) · Member since 2017 · 210 posts · 135 votes
1y
Great question and like Ken said it's great you're taking this into consideration! When we purchased our properties in GA, they were reassessed at exactly what we paid for them in our county. If there are similar properties that have sold nearby, try to do a county search to see how much the property taxes have changed. This is what I do to help get an estimate, especially in GA.
Thompson Tax Group LLC550 Reviews
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Jason MalabuteBusiness Member
Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 906 votes
1y
Hey AJ,

You’ll need to call the county assessor directly and ask for the formula they use to calculate property taxes—every county in Georgia calculates it differently.

But fair warning: I’ve had experience dealing with several counties in Georgia, and they rarely give a straight answer. Depending on who you talk to, the information can vary. You’ll need to be persistent and keep asking until you get the clarity you need.

Good luck with your deal.
Malabute & Company CPAs525 Reviews
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