Bad Idea to ask Buyer to pay back taxes.

Bad Idea to ask Buyer to pay back taxes.

Investor · Ogden, UT · Member since 2012 · 23 posts · 3 votes

Okay, now I know this is my first post but I would like to say thank you all for taking the time to read this.

I own a small 1/4 acre lot that I have not paid my last two years of property taxes on, why did I not pay? Let's just say I planned on building on the property this fall and was just going to pay them off at that time. Well last week I had a builder approach me about buying my property. I told him to make an offer and told him what I wanted. He sends in his offer with a low number and I counter higher than I previously stated. I get a call from him and he wants to discuss the price which I came to the conclusion that I would not sale for what he wanted to pay. Fast forward a week and I get a counter saying this is his last offer and he offered me $2000 less than my original counter.

Now comes the question, I would like to sale it for his offer because I can use it for another piece of property I have my eye on. I owe $2,300 in back taxes, would it be wrong of me to send a counter back saying I will accept your offer if we can agree that he pays the taxes?

The reason he wants the property is because it has an amazing view and is the last lot in the subdivision that is relatively flat and easy to build on, the other lots require a lot of site work.

What would you suggest my move be, ask him to pay the back taxes or maybe split the cost?

Thanks again for taking your time to help me out.

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Investor · North Wales, PA · Member since 2013 · 116 posts · 44 votes
13y

Honestly, I think the issue of back taxes is entirely irrelevant. This is money you owe, in that regard it's little different than a mortgage.

He's offering a price for the property. If this makes sense to you, sell; otherwise, don't sell.

If you countered at a number and then he comes to within $2,000 of that number, it would be absurd in my opinion for you to re-counter at $2300 higher than this.

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  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Look at it from his perspective. There is a total number he's going to have to pay for the lot, and that's the number he's interested in. You can ask him to pay the back taxes, but what the money is for doesn't mean anything to him, other than make him think you are a distressed seller.

    It sounds like you are close to a deal. Are there other builders or developers you can shop the lot to? Is your market moving up? If so, I'd hold out for my price.

    Welcome to BiggerPockets.

  • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    13y

    Cash is cash, your last offer is going to be more than your original counter by $300. You can hold firm at your price if you want but you're probably not going to trick him.

  • Investor · North Wales, PA · Member since 2013 · 116 posts · 44 votes
    13y

    Honestly, I think the issue of back taxes is entirely irrelevant. This is money you owe, in that regard it's little different than a mortgage.

    He's offering a price for the property. If this makes sense to you, sell; otherwise, don't sell.

    If you countered at a number and then he comes to within $2,000 of that number, it would be absurd in my opinion for you to re-counter at $2300 higher than this.

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