Taxes For Newly Constructed Homes

ALWAYS estimate higher than expected for the taxes on your newly built home. The tax assessors will reassess your property after you purchase it. This could happen right away or even a few months from when you purchase the new property. When they do asses the property it will increase your tax amount since you have made improvements to the vacant land that the previous assessment was done on.

Vacant land has extremally low taxes than land with a home recently built on it. We call this improved land. Plan for this in your monthly mortgage budget so you are not shocked when you have to pay $350 extra because you did not expect to have a higher tax payment.

Before going under contract speak with your lender and real estate agent on what their estimates are for the taxes on the newly built property. It is better to over estimate instead of be required to pay more at the end of the year!