Real estate taxes at closing

[Jason Smith]

I was about to put in an offer on an REO and my agent told me the property taxes would be over 4000 due for escrow before closing, the offer would have been 40000 on a large home. What determines the property taxes and can they be reduced if they seem extra inflated?

[Katharine Chartrand]

who pays the taxes is negotiated in the purchase contract. it could be that buyer pays the taxes, but i have bought 4 REOs with some really obnoxious purchase agreement and i have never seen the bank pass property taxes on to the buyer (me).  

banks have hit me with the water bill.  i now read the purchase agreement really closely. 

if you are responsible for the taxes, the county or city may or may not be willing to negotiate.  these things are ultra local and change with time. you have to be prepared to pay the $4K, but there is absolutely no reason not to seek to have the taxes reduced by whatever mechanisms and avenues the taxing entity allows.

>KNC<