Property Tax Assessment - Delaware County
BiggerPockets Community,
I'm looking for a little clarity in how property tax assessments are performed. I'd like to potentially invest in a 4-unit property on the outskirts of Philadelphia (Delaware County). However, the taxes in this area are extremely high. I've still been able to find some properties where the numbers work with the current tax assessment but I'm worried that a significant change in tax assessment would eat into my cashflow.
As a detailed example, one property has just recently been assessed for tax purposes at $110k in 2018 but the asking price is close to $250k. Does the tax assessment change to the price of sale once the property is sold? Would love to hear from anyone knowledgeable about the subject.
Thanks!
Most Popular Reply
@Brandon Ebeling
Delco's Property Assessment Value is not the market value. The Assessment Value does not change due to an ownership change. The Assessment Value can change only by appealing your Assessment. And yes, due to a recent court ruling, Delco will be re-assessing ALL properties effective 2021. There has been some recent press about the re-assessment. I believe Philly.com wrote about it a few months ago. My understanding is the areas in Delco closest to the riverfront will be adjusted more favorable then let's say Radnor or Haverford Townships. Time will tell. That being said, I would not let the Re-assessment prevent me from investing in the area.