I want to buy, but I'm afraid of the taxes...

My biggest pet-peeve is clients who "listen" to their friends. I learned a long time ago that if the client emphasizes that "their friend said" and continues to go back to that same phrase multiple times ...... i'm better off letting them go aggrevate some other Mortgage Broker. The majority of the time the "friend" doesn't have a clue what they are talking about.

Sean Allen
The Mortgage Professionals

That's a tough one.  We can't predict what the Uncle Sam's will do, but you give him your best educated guess!

Sean,

I'm a Realtor(R), he is a great guy, he is listening to someone who was also a buyer who has decided to wait...with the thought's that the friend will get a better deal next spring...an employee with not a clue...go figure!

Heather,

It is a difficult situation...the market here is day to day...I'll talk to him this weekend...will let you know!

Thanks for posting...

Karen, I'm not a realtor but I know that people like to see things in black and white. I would just show them on the property appraisers site the Home Buyer's Tax Estimator. When you input the purchase price, it clearly states what the taxes will most likely be. They can even narrow it down by searching the actual property address and then up at the top hit Tax Estimator and it'll calculate it off the actual mileage rate for that property. Black and White, can't argue with that.

Which, in what you state with the PP of $500k it would run around $9K. My sister lives out in Southwest Ranches and she has 1 1/2 acres and her yearly taxes with homestead is around $7.5K, based off of $400K PP.

People do tend to be stubborn sometimes. Wish you all the luck.

Go to the assessor's website and get the real tax information.  That is what I do.

Your clients friend made a WAG (wild assed guess) you cant do the same thing. You have to have a good reason for the number you come up with.

What I have done in similar situations is to take the sales price, discount it by 10% and multiply by the millage rate.  It's important to note that the 2008 taxes will be based on the the Jan 1 2008 ownership. so you can take the 2007 tax bill and suggest that if nothing else changes (the law the assessed value or the county tax base or the millage rate then his bill for 2008 should be about the same.  2009 will only be a guess. Our government seemsto be committed  but who knows?  to controlling property taxes.  I try to brush off the question by saying there is no way to predict.  There is a proposal going before the voters in January that is designed to  control property taxes. It may or may not pass. There are also citizen groups working to get something more on the ballot in November.  Property taxes in Fla are truly up in the air and anything I might say is sure to be wrong.

The Lee county Fl property appraiser has a tax estimater on their website which makes it easy to generate a nunber. perhaps your county has something similar. Otherwise find a property that is assessed at 500000 (no SOH) and see what the taxes are there.  or ask your broker how he arrived at the 12000 figure.

John,

Yes I realize that, but my buyer doesn't do email. He's a millionaire times more than I can count... I do it for him...but ...I tell him but...you know...

Thanks for posting,

Ron,

I'm LOL as I read the WAG....OK, it's a $700,000. property...You must be a mortgage guy, sorry I forget...

I think my broker is basing it on his last year taxes..yikes!  Or 2%

That's what I mean, he is afraid to buy before the Jan 29th vote...I've checked the site...

The Florida taxes are a mess...amazing...the people that are making $100K will be waiting tables at local restaurants...for additional income to pay taxes if something isn't done soon!

Thanks for posting...

Errrrr Karen - he's a millionaire several times over and he wants to buy a lot of land in your part of the world and he's worried about $24,000? It doesn't add up.

Having said all of that you can tell him that the Legislature will be revisiting the entire property tax situation in the State during the regular session next March - and that has nothing to do with the Amendment passing or being rejected.

Can you define "a tight wad"...he can pay, just doesn't want to...I know him...more money than brains...then again...he doesn't want to pay anything,,,sans,,,lot's of $$$...you know the kind!

Simon,

Millionaires are millionaires, b/c they find way's to not pay sh*t...they have great lawyers.... loops! :-)

Everyone has a good friend who knows better. Don't be afraid for the debate and just blow them away.

Max,

Exactly!

Not true Karen - Trump did not know he was paying $1m in property taxes on one home in Florida until a reporter told him.

Simon,

Excuse me but "The Donald" was in no way included in my remark.  That comment was not meant for Trump!

lol - ok Karen - what category is he in? Bad hair perhaps? How about bad acting? But whatever it is, he is a millionaire and he got their by knowing good business when he saw it. You can't make your friend buy. I wouldn't guess at taxes - I would merely say it is what it is and we can't change it, but it is insignificant compared to the amazing deal I can get you on this property. The saving I'm going to get you will cover five years worth of taxes.

Actually, FYI, I met, "The Donald and his ex-wife at the Four Season's in New York, many years ago...so...therefore I know...more than you might think...

My comment was not directed to him...

My ex-husband and his cousin a very well known attorney...are friends... that  being said, no more about it...I've been advised...

Um, Simon, please, he has attorneys and accountants who manage his whole empire.  He doesn't know most  of the insignificant issues in his fortune. That's what he pay's lawyer's and accountant's for... are you kidding me...???

LOL, Simon,,,there are others as good as you... :-) well connected as well...:-)

Karen, I tell them aproximately the taxes will be this....

Then I send them to the MI Property Tax Estimator web site. They can fill it in and see for themselves. Our problem is the declining values in re-sales, the SEV and TV is higher than the homes are selling for and with the MI Economy the taxing municipalites are not lowering them.

My favorite comeback to this is to lay out the "Mortgage Interest Deduction" vs the property taxes.  With homestead exemption in Michigan, the extra property taxes are nearly a wash after the Interest Deduction is removed from the income taxes.

Do the math and see if the same is true for Florida 

Karen ,If someone else told him 24,000 and you tell him probably only around 12,000 tell him you,ve saved him 12,000 already.