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If a house is currently assessed for 480K with 9K in taxes and I buy it for 500K, would the assessment and taxes automatically go up. If yes, how much it might be?
You paying more for the house should not impact its future taxes or assessment - the same logic applies to the fact that if you pay less than 480k, taxes and assessment won't decrease.
I am sure you are aware that you will have to pay more out-of-pocket at closing because your lender won't consider the asset to be worth 500k.
I meant an assessment done by a tax assessor. Banks do their own assessments, don't they?
Does that change your answer?
I live in a co-op in NYC and didn't have to deal with property taxes or assessments before.
Your tax assessor valuing your property at 480k should not have an impact on the bank's appraisal. That being said, the appraisal may come in less than the assessed value which, in that case you might be able to reduce your property taxes. The bank will only loan up to the value of the appraised amount (minus any downpayment).
My question is what will happen if the bank's appraisal is higher then the assessed value? Will my taxes go up after the purchase. And if yes, how much might that be for the scenerio in my original post.
In New Jersey, the local Tax Assessors do not reassess upon sale of a property, so the amount of your assessment for tax purposes has no relationship to the appraised value of the property. Likewise, the mortgage lender doesn't care what the tax assessor says about the value of the property.
I was a municipal Tax Collector in NJ for many years, so I speak from experience.
My question is what will happen if the bank's appraisal is higher then the assessed value? Will my taxes go up after the purchase. And if yes, how much might that be for the scenerio in my original post.
The town would have to do a reassessment of your house in order to raise the taxes. They don't run out and do that every time a property is sold. A bank's appraisal and a tax assessment are two totally different things done by two totally different entities for two totally different reasons. Usually towns do an assessment of all the properties at regular intervals.
You will probably pay taxes based on what the current assessment is.
No one would be able to tell you what the difference would be anyway unless they knew what your specific town's tax rate is.
You need to know both the assessment and the ratio that the town is currently assessed at. The assessment w/out the ratio is meaningless.
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