Property taxes are an extremely impactful part of trying to sell your home or business property. This may be even more impactful this year, and for those that own and are thinking about selling property on Long Island.
Here’s what you need to know…
The Many Taxes When Selling Your Home
There can be a whole list of taxes to take into account when selling your home.
In addition to your property taxes, this may include:
- Real estate transfer taxes
- Surtaxes
- Capital gains taxes
- Special withholdings
- IRS tax liens
Be sure to get the help of a professional to add them all up and subtract them from your sales price. As well as any prorations for association dues, special assessments, and any Realtor commissions. A title company, real estate lawyers or state licensed real estate broker can help you with this by preparing a net sheet and estimated closing disclosure.
You Can’t Sell Your Home Until You Pay Your Property Taxes
Don’t wait until you can’t afford to pay your property taxes to try and list and sell your home.
Your property needs to be able to be transferred free and clear of liens. Otherwise your buyer won’t be able to get title insurance, and no one is going to want to do the closing.
You will have to catch up any past due property taxes, liens and fees. The closing agent will also collect prorated estimated taxes to cover upcoming property tax bills.
Inflation Is Killing Your Home Value
All of the extreme inflation that is going on is killing your home value too. This includes inflation in interest rates, lender fees, utilities, insurance, internet and cable subscription, maintenance, etc. That’s along with property taxes which may have soared 50% or more. Most people’s income hasn’t gone up by 30% or more in the past year as these costs have. So, what people will pay is based on wanting to be at the same payments. Which means all of that excess needs deducted from their offer and what you get on a sale.
Zillow Is About To Crush Your Property Value
Zillow has been collapsing. They’ve announced around at least 7,000 homes they’ve bought recently will have to be sold at less than they paid for them. With $30B in stock value losses, and more direct layoffs, which certainly will impact NY. That is going to bring down property values and how much people can pay. This is all a result of Zillow revealing that it has absolutely no idea what property values are, and can’t predict them.
This distress should be reducing your taxable value and bill. Yet, the opposite will happen if county has to step in to take care of more zombie homes and less units are paying their property taxes.
What To Do Now
Whether you are actively trying to sell your home, or you just want to be in a position that you can if you need to, get help to cut your property tax bills now, make your home stand out, sell faster, and net more money.