Property taxes when buying a house
What are the Property taxes when buying a house? This is another great Real Estate question that Orange County Homebuyers ask on a regular basis and it’s something vital to know because property taxes can be thousands of dollars per year and it’s better for you as a home buyer to be ready to pay property taxes before you purchase the home.
When Are Property Taxes Paid?
Property Taxes in Orange County are typically paid two times per year, in advance. A typical Orange County Homeowner can expect to pay the first one by March 1st. This will cover the period from March through August of that year while the September payment will cover the months of September through the month of February.
What Can Home Buyers Expect?
Let’s say that you purchase a home midway between March and August, or September and February; if you’re three months plus a few days into that property tax cycle you can expect to pay prorated property taxes from that point up until the point that the home is sold to you.
As a new homeowner you can expect to pay up to .17% of the property’s value for the month (depending on area). the amount that you ultimately will pay for property taxes depends on how many days or weeks that you actually own the home during the current tax period and the total amount that you will owe upon purchasing an Orange County Home will be calculated by the Orange County Settlement Agent. Property taxes in California cannot increase by more than 2% per year under Proposition 13, so while your mortgage may be fixed, your property taxes are not.
Don’t Rely On the Previous Homeowners Tax Bill
One easy mistake to make during the process of calculating the Property taxes when buying a house is think that your property taxes will be low because, the previous homeowner was paying low property taxes.
Property taxes all relate to the sales price of a home. If the home that you’re planning on buying in Orange County is sold to you for $20,000 or more than what it was sold to the previous owner years ago you can expect to pay property taxes based on the home’s current value, not what it may have been valued at years ago.
To learn more Property taxes when buying a house you should contact the local tax assessor for the county that the home you’re planning on buying is located or call the experienced team of Orange County Realtors at Fred Sed & Associates today for a free consultation at (949) 272-0125.