Higher Property Taxes May Await Columbus Home Buyers - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Higher Property Taxes May Await Columbus Home Buyers

Columbus property taxesIn today’s competitive market, it’s likely that Columbus home buyers will end up paying more than the assessed value for their home purchase. This means a potential tax bill surprise in the future. Here’s why!

Franklin County conducts property reassessments every six years. There is also a “Triennial Update” performed at the third-year midpoint of each six-year cycle. The six-year cycle involves reassessments, and the three-year cycle involves an analysis of property sales. The 2020 Triennial Update resulted in a 20% increase in median values for residential properties.

The Columbus area real estate listings you see today should be showing annual tax bill amounts based on the 2020 assessment. However, home prices have been rising on a year-over-year basis. The tax assessed value from 2020 is already outdated in most cases. By the time the next Franklin County property reappraisal is conducted in 2023, the difference in appraisal value could be significant.

In other words, if you view an online home listing for $339,000 in Columbus that shows an annual property tax bill of $3,500, that tax bill is likely based on a prior assessed value that is lower than the list price. How much lower? You can find out with a little digging online, such as this tax bill search tool at FranklinCountyAuditor.com.

Homes are assessed at 35% of fair market value for tax purposes. The tax bill itself is based on the assessed value of your property, multiplied by the tax rate in your community. The sum is your share of the operating costs of your local schools, municipal services and so on. The more your property is worth, the larger share of property taxes you are likely to pay! You can find 2020 Franklin County tax rates for 2021 at FranklinCountyAuditor.com.

Do not take the tax bill amount you see on a real estate listing for granted. Your future tax bill will depend on the assessed value of your property – which is influenced by sales prices – and the actual tax rate for your local community. If your property taxes and homeowner’s insurance premiums are escrowed with your mortgage company, increases in your future tax bill can mean a higher mortgage payment. If you pay your property tax bill directly, be sure to sock away a little extra to manage any future tax increases.

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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