2021 Property Tax Values – Hey, now, property taxes are coming out twenty twenty one, property taxes coming right out, you’re going to be hot off the press any day. You’re going to see them. Right. And how does that affect you as a buyer and or seller during this time of the year when the values for next year I’ll put like Remigio. We’re going to discuss all that more with the luxury real estate broker, Shana Acquisto. Hey, that’s me.
Yes, it is. So we’re midway through the year, right? And we all know when we close that we get this adjustment and it’s done and it’s prorated and like all this goes on and people are always like, wow, there’s a lot going on right here. But it’s the day you purchasing actually clothes and fund on your property that there’s an adjustment made and there’s a credit or a debit based on where we happen to be from the buyer and the seller. So then we get this all right, right to the day. But we have a problem here. You want to describe the problem and kind of explain it.
So the problem is our market is hot, hot, hot, and things are selling and going up and up and up. And therefore your values could go up and up and up. Right. So if you’re taking if you’re closing and your taxes are based on the previous year, I mean, they can
go up substantially. The courier, right? So what happens is there could be a shortage at the end of the year when your buyer closes on their home, taxes are due. Well, they took taxes from the previous year, but this current year they went up significantly. There could be a little a little gap there
And it becomes more of a problem the larger the home is now closing. You have a document that says like, hey, we can go back and obtain this money from the other party and whatever it is. But then you’re having to wait on this party and like, do they have the money? Did they spend it? Like, what’s their obligation? I mean, you have to in this to track them down as the buyer.
Yes. So what we want to know is the reason that it’s the most important thing to consider right now is because we want to know what you’re they’re basing it on. Right. What the value is. And you, as the listing agent need to understand that. And it’s the buyer’s agent needs to understand what your client’s going through and need to know what the potential dollar amount is.
Yeah. And maybe you need to negotiate that and you need to make sure that you are protecting your buyer. So at the end of the year, that doesn’t happen. So until the taxes are passed protests and they’re set in stone, that value is based on the previous year. So if you you may want to talk to your lender, you may want to talk to your client and and negotiate that in and say, hey, we want to make sure that if there’s a shortage on here, that we have some way to go back in and get that and maybe put it in the contract.
Yeah, it almost seems like you should collect a higher amount based on that, like 10 percent higher on a standard year. I don’t know this, but I don’t know.
I could allow you to do that. So it could be it. That’s why I’m saying I think you can get it in some way, shape or form.
You can give a credit. You know, that’s also difficult when we’re in such a hot market and you’re you’re trying to avoid any obstacles and contingencies and things like that look funny.
Yeah, that’s going to be a super hard thing to explain. Like, yeah, we want to go one hundred thousand dollars above on the purchase price of your home, but we’re super concerned that the home value is going to go up by this amount. So therefore we want a thousand dollar credit. That’s weird. We’re paying one hundred over and we want a thousand dollar credit. Let’s potentially avoid Auri.
So maybe that’s something you go in and you say, I’m going to go up this high because you know what you know, and use it as a as a negotiation. I we you know, we won’t go back and ask the seller for the difference.
Oh, good point. So that’s an advantage. And you’re going to potentially waive that for your client so that it is a perceived value to them of an extra thousand or two thousand dollars or whatever that number happens to be in the situation. Yeah, depending on the purchase price.
And I would guess that it’s something that they haven’t even thought about yet. So they’re going to be like, whoa, so this is this offer won’t go back. I don’t know what our taxes will come in at. You know, that can be a, you know, a way to actually secure a property, a difference maker.
And it seems like, you know what you’re talking about when you utilize stuff like this. Right. So you’ve done a pretty decent job of kind of discussing this whole topic in getting you to a reasonable solution. And I’m really impressed with that one. It was great thinking, great on the spot, Shana. And, you know, I always like when everyone’s flowing this way, if you give information as just a little bit different from the other people. Right. So if you’re telling that listing agent, hey, we won’t do this and be like, oh, I didn’t even think about that and no one else mentioned it, this agent must be really good. So therefore. Right. Yeah.