New home, Tax increases 150%?

[Kevin Ha]

Hi Guys,

I really need some help and understanding what is going on here and I appreciate all feedback and help. I'm a first time investor and I have been trying to close on a property. I finally am down to about 1-2 weeks left before it closes after a long back and fourth with the sellers. I looking at my closing disclosures and I realized that the closing cost is way higher then I had anticipated. It was for a number of reason but it seems like one of them was that the annual property tax bill was increased from $4000 to $6000. I do not understand how that is possible as before i brought the property, i looked at the county record and saw that the taxes has been around $4000. Even when going under contract, it was actually estimated to be less about 3.8k. Now, my lender is saying that the tax bill they've received is way higher. I just checked their recent tax bill and it looks like the overall tax rate hasn't changed either so I am confused as to where this number is coming from. Has anyone gone through this situation before? I'm in NYC by the way. Thank you.

Regards,

Kevin

[Wesley W.]

@Jon Crosby

That's almost certainly what is going on.  In many municipalities in NY, the property taxes are reassessed based on the new sales price.  The OP's lender is probably looking to hold an additional amount for taxes in escrow (based on the new sales price).