Do Property Tax Rates matter to Buyers?
After posting my article Marblehead leads the way in Million Dollar sales in Essex County in which I speculated that different property tax rates may be one reason for the changes in sales in different towns, I checked my blog records and discovered that my posts on tax rates are among the most widely viewed.
The interest in tax rates is demonstrated at all price levels. It is easy to understand that a buyer of a $5 million home would save $50,000 a year in taxes choosing the town with a low tax rate rather than one with a high rate. $50,000 a year matters regardless of income level!
In recent weeks, however, I have worked with two buyers in the +/- $500,000 bracket, both of whom chose Marblehead in part because of the tax rate. And both independently said that they would rather put their money into building equity than paying high tax rates.
Here is the table of tax rates for the North Shore for the last three years. I have 13 years of tax data for every town in Essex County. If you are interested just ask me.
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If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
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