Sell Your Property Faster and Smarter: Use Property Taxes to Your Advantage!
When it comes to selling a home, property taxes can have a significant impact on the final sale price and the ability of the buyer to close. This is especially true in Illinois, where property taxes are rising faster than the salaries of most homeowners.
As a realtor, it is important to be informed about property taxes. Understanding the property tax situation before listing the property can make all the difference in successfully negotiating with buyers, ensuring that you sell the property for the top dollar, and ensuring that the buyers will be able to obtain financing for their new purchase. This knowledge will allow you to provide your clients with the necessary information to appeal property taxes way in advance of the sale or to deflect tax-related demands from buyers when they become unreasonable.
One of the first things a realtor should do when analyzing a client’s property taxes is to determine what the property taxes will be for the current year, rather than relying on the previous year’s taxes. Property taxes are paid in arrears, so if the realtor is selling a property in 2022, they should calculate the property taxes based on the 2022 tax assessment. This is especially important in a reassessment year when tax assessments can increase significantly from the previous year, sometimes by as much as 30%, 40%, or even 100%. This process can be time-consuming, but can still be accomplished using information founder on Cook County Assessor, Cook County Clerk, and the Cook County Treasurer‘s websites. However, our website offers a quick solution by generating a Property Tax Analysis report. Click here to sign up and start generating your reports. This report will provide valuable information to the realtor about whether the seller’s property is being over-assessed, under-assessed, or fairly assessed by the county. Armed with this information, the realtor can negotiate with buyers from a position of strength, without having to lower the listing price of the property due to property taxes.
If the county is over-assessing the seller’s property, the realtor can suggest that the owner file an appeal for their property taxes. Once the appeal is filed, the realtor can provide the Property Tax analysis report to potential buyers to ease their concerns about high post-closing expenses and prevent them from negotiating further based on taxes. The report can also reassure buyers that the seller is taking action to reduce their property taxes and that the listing price is fair.
If the seller’s property is being fairly assessed, providing the property tax analysis report to buyers can help to alleviate any concerns related to property taxes. This report can emphasize the fairness of the listing price and the benefits of purchasing the property, while also highlighting the fact that buyers do not need to worry about unexpected post-closing expenses related to property taxes.
On the other hand, if your analysis shows that the property may be overvalued by the assessor after the purchase, based on the listing or purchase price, the seller can provide a property tax analysis report to all prospective buyers to emphasize the fairness of the listing price and the possible tax reduction after the purchase. This information can help increase the perceived value of the property and encourage buyers to make a purchase at the full listing price.
In conclusion, understanding property taxes is a crucial aspect of being a successful realtor. Providing clients with an accurate property tax analysis can benefit the sale of a property by helping you devise the right strategy to negotiate from a position of strength, alleviate buyer fears, and increase the perceived value of the property. So, take the time to understand property taxes and use them to your advantage when selling a home.