For people who have lived in CO for awhile, maybe you've hit this. I sold a rental property in Steamboat and the closing was 12/31/2013. I kind of forgot property taxes are paid in arrears. Also, I do read all the documents and really didn't take in the "all tax settlements are considered final" one.For anything that closes late in the year, the taxes are estimated based on the previous bill. The bottom line is that I overpaid by........50% !The good news is that it was only about $200 which is not much to pay for the learning experience and it could have happened in my favor at another point in time.I made close to 50% on my investment in 18 months on this one(much thanks to my realtor/friend/neighbor and a bad ski season when I was bored) so meh but I did want to give others a heads up so you might not have a similar and more expensive learning experience.
Good to know. If you didn't pay enough taxes at closing they would come get the rest from you, but if you over pay you are out of luck in getting a refund? Sounds typical. At least you came out far ahead on your investment. 2010 sure had some great real estate deals, I wish I could have taken advantage.
If you didn't pay enough taxes at closing they would come get the rest from you, but if you over pay you are out of luck in getting a refund?I don't think they can come back for more since both parties sign that it's the final tax settlement.2010 sure had some great real estate deals, I wish I could have taken advantage. There may still be some out there but it's a tough call. I still have a house in the Tech Center to sell and there will be big gains from just two years more - I just need to get my act together and get it on the market.One other issue in the current market in Steamboat is the appraisal if there's going to be a mortgage. It's still kind of a crapshoot because appraisals are based on recent sales. I'm in the process of buying something bigger for myself and waiting for the appraisal on the buy. The other market thing happening up there is an utter lack of rentals so if my current condo doesn't sell, I'll rent it.(I sound much better at this stuff than I am - some of it is pure luck)
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |