REAL TipS: BUYING

Prepare for property taxes

Some first-time homebuyers fail to understand the impact that property taxes can have on the overall cost of homeownership. They can add a significant amount to the monthly mortgage, but there are things you can do to prepare yourself for property taxes. It’s a good idea to find out how much the current owner pays for property taxes. Sometimes, you’ll see this number on a marketing flier, and you can usually access this information from the county tax assessor. However, don’t assume that your property taxes will be the same if you buy the home. The current owner may benefit from exemptions or a property-tax cap that may not apply to you.

Your Texas REALTOR® can typically give you a good estimate of your mortgage plus homeowners’ insurance and property taxes. It also may be a good idea to pay your property taxes into an escrow account, particularly if you are a first-time homebuyer. Making small payments throughout the year is much easier than coming up with several thousand dollars at once. Talk to your REALTOR® about the benefits of escrow accounts.

Texas Association of Realtors®