Property tax documentation can throw an unexpected monkey wrench into your home sale. Different municipalities calculate and bill property taxes on different schedules. There’s no one way to include taxes in a lender’s overall estimate of how much a potential home buyer can afford, so it’s up to sellers, like you, to make it easy on the buyer and the buyer’s lender.
First, collect the most recent copies of your property tax statement. Note the date so you can stay on top of changes and get the current tax rate if your house is for sale when the new tax year starts.
Be sure that the tax information is correct: that the tax ID number and address are accurate and that your house is accurately described in the local property tax listing. If your house has been overlooked by the county or municipal assessor, your buyer could be hit with a big bill when the correction rolls in. It might sound like you are dodging a bullet, but if the reassessment results in a large increase in property taxes, it might be too much for the buyer to afford, according to his lender’s application of debt-tt-income guidelines.
Include the property tax information on your USRealty.com listing sheet. Have a copy of your most recent tax bill, and proof that it was paid, in your set of detailed homeowner papers for the buyer to use when applying for a mortgage.
Streamlining your property tax records is easy to do each time you pay the taxes. It’s a good idea to triple-check the validity of the tax bill details every time so that you can head off any problems that could cause difficulties for you and that could complicate the sale of your house.