Real EstateTaxes- Calculation (sales, condos, homes)

[dante80]

Hey Guys,

How doo real estate taxes get calculated? I believe for new condos, they are based on purchase price. Is it the same on existing condo? As everyone on this forum knows, NJ real estate taxes are crazy, even when compared with NYC!!!
Stay dry today!

Thank you!

[dante80]

Any inputs guys?

[Lusitan]

For existing homes (including condos) it probably varies by locality, but I believe that real estate taxes are based on the last assessed value, not the most recent sales price. "Assessed value" is really only useful for the town's tax calculation, it doesn't give you any info about the value of the property today (although it's a useful measure of relative home values across homes assessed at the same time).

For any existing home/condo you're looking at, you should be able to find out exactly what the assessed value is, but more importantly, exactly what the annual property taxes are.

[DodgeViper01]

In the state of NJ property taxes are based on the assessed value. In states like Florida, sales prices comes into play but in NJ, our property taxes have nothing to do with sales price. What you have to do is run comps on similar condo units to see their property taxes. You can do this at your local county clerks office or ask a realtor friend you know.