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Looking at the budgets, East Windsor has a tax rate of .43 and brings in 12 million dollars.
Highstown has a tax rate of 1.29 and brings in 5 million dollars.
Therefore, the answer points to population and then I found out it's 27,000 people vs 5,000 people, each of which is covering a similar baseline of fire trucks and police cars and town services but it's spread over a very different number of people. I would imagine people in Highstown don't have a hard time selling it because of the scarcity, similar to how people in Glen Ridge manage to sell their houses that have a higher tax rate than neighboring Montclair.
I'm saying that people look at homes in Highstown with an awareness that their smaller town is going to result in them paying higher taxes.
However, higher taxes do not always correlate to higher home prices, as the next poster mentions. Sometimes comps are cheaper because the taxes are higher making the overall price comparable. However, the mortgage isn't going to go up but taxes likely will, so over time a Highstown home that costs less with more taxes will likely cost more as taxes go up, you just won't see it for ten years or so.
so over time a Highstown home that costs less with more taxes will likely cost more as taxes go up, you just won't see it for ten years or so.
If the price difference = $75K and the tax difference = $4K, it would take 18.75 years. not bad.
But this is only true if the difference remains $4K.
Hightstown may raise the taxes more than East Windsor.
At this point, I am concerned that the Hightstown taxes will be so high that when I need to sell that I can't sell.
As a seller, I can't lower the taxes, but I can lower the price so that I am selling it at a loss just to "get rid" of the house.
People don't buy homes because of what the taxes are, that's something they can't control. They buy because the home has the right number/combination of rooms and is in the right location.
Case in point, taxes on the home you're looking at were lower when the current owners bought, what brings you to look at their house?
New Jersey is atypical for national home sales trends, most houses sitting unsold aren't because of the taxes, they're because the home is priced too high. When we bought we offered 10% less than the asking because the exact same house right next door had sold six months before at what we were asking for. The one we bought had sat unsold because the seller wanted more money they were never going to get.
Price your house right and it will sell, the taxes don't get into it when the whole town is paying the same.
People don't buy homes because of what the taxes are, that's something they can't control. They buy because the home has the right number/combination of rooms and is in the right location.
Case in point, taxes on the home you're looking at were lower when the current owners bought, what brings you to look at their house?
New Jersey is atypical for national home sales trends, most houses sitting unsold aren't because of the taxes, they're because the home is priced too high. When we bought we offered 10% less than the asking because the exact same house right next door had sold six months before at what we were asking for. The one we bought had sat unsold because the seller wanted more money they were never going to get.
Price your house right and it will sell, the taxes don't get into it when the whole town is paying the same.
taxes and “priced to high” are kinda related? especially with single family
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