Posts Tagged ‘sold for back taxes’

How Real Estate Taxes Impact the Cost of Owning a Brooklyn Home

Friday, April 8th, 2011

As we approach the 2011 Income Tax filing deadline of April 15th , as homeowners we turn our attention to a different tax, real estate tax.

The cost of home ownership is not simply your monthly mortgage payment.  In order to calculate the true cost of Brooklyn home ownership, you need to consider a variety of other expenses.

One of the additional expenses you need to consider is real estate taxes.  Most state and local governments charge an annual tax on the value of real property. This is called a real estate tax.  Not everyone is subject to real estate taxes but for those who are it can make a big difference in how much home you can afford.

Real estate taxes are not the same for every property.

Real estate taxes vary from a couple of hundred dollars a year to thousands of dollars a year.  This should be looked at seriously, because it could mean the difference between being able to afford your home and not being able to make your payments.

No one wants to be house poor or lose their home because they can’t afford the real estate tax, but countless numbers of people have lost their homes for this very reason.  If you don’t pay your real estate taxes, not only will your home be sold for back taxes, but the mortgage company will still expect full payment on your loan.

Higher taxes don’t necessarily mean better services.

Although neighborhoods with higher taxes can offer better schools, roads and hospitals, this is not always the case.  Don’t judge the neighborhood by the real estate tax, but do look at the services you’re getting for the taxes being charged.

Real estate taxes must be paid to transfer ownership.

If you are selling your Brooklyn home, you must have your real estate taxes current.  If you’re buying a Brooklyn home, know that the real estate taxes are part of the closing costs you have to pay.  The yearly real estate taxes and the status of those taxes are part of every real estate listing and should be taken into consideration just as you would consider the price of the home.

Knowing the costs associated with homeownership allows you to purchase your new Brooklyn home with peace of mind.

If you’re thinking of buying a Brooklyn home, let me help make the process a pleasant and profitable experience.  Call me Charles D’Alessandro your Brooklyn Realtor® with Fillmore Real Estate today at (718) 253-9600 ext 206 or email me at [email protected]