Why Property Taxes Are Such a Big Closing Cost
Here’s why property taxes will be one of the biggest costs at closing.
Today I want to talk about property taxes and how they affect closing. Generally, property taxes are the third highest closing cost for sellers, and that includes paying off your mortgage.
Here in the state of Indiana, we pay our property taxes in arrears, which means we pay for the previous year. If you close on a property today, you’ve already paid your 2020 taxes, but you haven’t paid your 2021 taxes yet.
You pay those taxes at closing in the form of a credit to the buyer, so it’ll come out of your proceeds. The nice thing about this is that you don’t have to worry about any other taxes after closing.
If you have any other questions or real estate needs, feel free to give me a call. I’d be happy to help you.