Do real estate taxes adjust by the price of the sale? (Chicago: sales, attorney)

[WestGuest]

When a building sells does the real estate tax change (A) automatically (probably not) or by the buyer requesting such if the price has declined( B)? or it is periodically reassessed by are and not triggered by sale (C) or (D) something else?


There are some nice looking buildings on the South Side- "bad"neighborhoods that seem to have high taxes compared to their asking price (Illinois has high real estate taxes in general anyway) and just wonder about it..

[nikitakolata]

The taxes definitely won't go down unless you appeal them, regardless of the sales price.

[WestGuest]

Originally Posted by nikitakolata

The taxes definitely won't go down unless you appeal them, regardless of the sales price.

Thanks how easy is that? Showing the price declined and the property had been listed for say 3-4 months and no other takers --would that be enough? Seems that would be a definition of market value.

[nikitakolata]

Originally Posted by WestGuest

Thanks how easy is that? Showing the price declined and the property had been listed for say 3-4 months and no other takers --would that be enough? Seems that would be a definition of market value.

My understanding is that if you want to be successful you'll need to hire a lawyer. I know that's what I personally plan to do when I close on a building. It's not just the market value of the property you are looking at that matters, it's how it is assessed compared to similar buildings.

[WestGuest]

"Hire a lawyer" is always apt and wise advice! (LOL I am an attorney). I'm not licensed in Illinois however. I did take and pass the Illinois Bar Exam in 1979-- I wanted to impress a Chicago girl friend at the time by walking in cold and passing.. The girlfriend went on to greener pastures and I foolishly paid dues for 10 years without doing a case in Illinois ( never lived there)..


I've done tax appeals in Texas with mostly good results-it doesn't sound so different..

[Grlzrl]

You don't have to hire an attorney. That's the big scam in Illinois. I used to hire an attorney until I figured out how to do it myself. I got a way bigger reduction than any attorney got. The key is not what the building is worth but if you can find comps that are assessed lower than yours. I do think the sales price will have an impact though. When you file a residential appeal, it asks if you bought your property recently. I am guessing if you appeal, they look at the actual price you paid as an argument against you.

[nikitakolata]

Originally Posted by Grlzrl

You don't have to hire an attorney. That's the big scam in Illinois. I used to hire an attorney until I figured out how to do it myself. I got a way bigger reduction than any attorney got. The key is not what the building is worth but if you can find comps that are assessed lower than yours. I do think the sales price will have an impact though. When you file a residential appeal, it asks if you bought your property recently. I am guessing if you appeal, they look at the actual price you paid as an argument against you.

Well, this is good to know. I am about to buy an industrial building so I wonder if that is any different. I can very easily look up comparable buildings, so maybe I'll try doing it myself first. I just think a $34,000 tax bill on a building that sells for less than $700,000 is insane.

[WestGuest]

Yikes Nikita there's a 503 acre parcel in Washington State where they were asking $699,000 -annual taxes $616 -of course timber and farm land is taxed at a lower rate but even a $700k building might only be about $4000.

[damba]

Originally Posted by WestGuest

Yikes Nikita there's a 503 acre parcel in Washington State where they were asking $699,000 -annual taxes $616 -of course timber and farm land is taxed at a lower rate but even a $700k building might only be about $4000.

Cook county taxes can be rough. The only reason my friend still has his Chicago commercial building is because of location to O’Hare and clients. Moving over the IN border will only work for certain situations.

[Grlzrl]

Originally Posted by nikitakolata

Well, this is good to know. I am about to buy an industrial building so I wonder if that is any different. I can very easily look up comparable buildings, so maybe I'll try doing it myself first. I just think a $34,000 tax bill on a building that sells for less than $700,000 is insane.

PM if you have any questions. I have only done residential but I know how to navigate the residential process pretty well.