Ever wonder what happens to property taxes when you buy a home?
Here’s what most people don’t realize: they’re actually settled at closing. Here’s how it works: property taxes are paid in advance or behind, depending on where you live.
At closing, the title company figures out exactly who owes what. If the seller has already paid for part of the year, the buyer reimburses them from the date of close of escrow. If the taxes haven’t been paid yet, the seller gives the buyer credit to cover their share. That means both sides walk away square. No double payments, no missed bills, just clean numbers handled by the title company, so everyone’s caught up.
However, be aware you will get a bill typically within 90 days called a Supplemental Tax Bill. That’s because the taxes that are paid in escrow are based on the Seller’s tax rate. The county then sends the Buyer a bill for the portion paid in escrow based on their new tax rate to make up the difference.
Of course, if you had an “impound account” set up and you pay your taxes in your mortgage payment that may be handled by your new lender. Ask your escrow officer for an estimation of the Supplemental Tax Bill so you can prepare!
If you’re thinking about buying or selling and want me to walk you through how property taxes and closing costs really work, DM me “TAXES”.
I’m Tanja Odzak, Realtor with eXp Realty. I help people sell and buy homes right here in the East Bay! With over $90 Million in homes sold and going on 10 years of experience, I know how to help you win in any market. I’m Tanja and I sell homes. Call me today and let’s get you going!
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
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