You can buy a home for under $500,000 today and still end up paying $4,000 more in property taxes than it would have otherwise.
It can be tempting to sell to the highest bidder but in reality, it’s a waste of time and money that could be better spent on something that’s in your immediate future.
Here are the most common reasons for selling your home and how to protect yourself and your home from future taxes.
Taxes will go up.
It’s always a good idea to consider the possibility that you’ll be charged higher taxes as a result of the sale, but it’s worth it to pay your taxes now.
If you’re considering selling, make sure to understand what’s expected and whether you can afford to pay.
If the taxes go up, the bank may charge you a higher interest rate.
You can check with your state’s attorney general to make sure your property taxes will be reduced.2.
It will cost more to maintain.
The cost of upkeep is another reason to sell now.
Many buyers purchase a home because they don’t want to take on extra costs like mortgage payments, property taxes and maintenance.
You could save money if you do choose to keep your home.
If your property is assessed at more than $400,000 and you pay $150,000 in mortgage and property taxes, the tax bill could go up by $2,500.3.
The house will be a burden to the family.
Even though the home you’re selling may be a nice home with all the bells and whistles, it may be hard to sell when your family has to pay taxes on the house and the mortgage payment is already going to pay the bills.
That could leave you with less money in the bank to cover other expenses.
You may want to consider a smaller home, or if you’re moving out of your current home, consider buying a smaller condo instead.4.
Your current mortgage is already paying taxes.
Some lenders will not allow you to sell the home for the same price they are paying on your mortgage.
If that happens, your mortgage payments are still going to go up and you could end up having to pay more in taxes.
You might want to discuss this with your lender, and be sure to take out a line of credit to pay off your mortgage faster.5.
The property may be worth more today than it was when you bought it.
If so, consider taking a chance on buying the home today and selling it at a lower price down the road.
If not, you may end up losing the money you spent on the home and your family could end out paying higher taxes.6.
The new home is a bigger investment.
Many people are willing to make the leap to buying a home now to save on the cost of renovations and remodeling, but if you sell it and end up spending a lot more on that new home, you could be in for a big loss on your taxes.
Your taxes are going to increase as a consequence of the new home’s cost, so if you buy a bigger home, your new home will likely be more expensive to maintain, and you might end up needing to pay a lot of money in taxes later.7.
The sale is just around the corner.
If all else fails, you might want, just maybe, to sell it before the end of the year.
If this happens, you’ll likely need to pay property taxes for up to three years.8.
You are still in a bad position.
Many homeowners have lost all of their equity, but you’re still paying property taxes on your home that were previously uncollectable.
The federal government may impose a penalty on homeowners who don’t pay their property taxes.
If a tax debt is greater than $1 million, the IRS may force the homeowner to pay $1,000 a month in property tax.9.
Your property is likely worth more now than it will be in a year.
You’re likely still paying interest on the loan, which can increase your overall interest rate and possibly make it harder to sell.
If it’s an ongoing loan, you have a good chance of paying the interest at some point in the future.10.
The IRS will eventually collect the interest.
If everything goes well, the Internal Revenue Service (IRS) will collect the property tax on your house in a few months.
If, however, you don’t make any progress on the sale and you end up owing the IRS a big bill, it could be a few years before you receive your tax refund.