Determining just how much house you can afford is an important step when you’re buying a home. Unfortunately, it’s easy to forget about real estate taxes when you’re calculating your monthly housing costs. If you’re planning a move to Scotch Plains, here are a few things you need to know about property taxes.
Your Taxes May be Higher or Lower Than Your Friends or Neighbors
Many factors affect property tax assessments, including the size, age and value of your home and the needs of your community. Property taxes fund the local schools, and the police, recreation and other departments, in addition to paying for community-wide improvements.
Although taxes tend to increase slightly every year, bigger bumps can also occur if the high school needs a new roof, your town is starting a major street re-paving project, or the governor decreases the state’s education budget. Before you buy a home, it’s a good idea to do a little research to determine if any major projects are planned. The Scotch Plains website is a good place to start, as is the Board of Education section of the Scotch Plains-Fanwood Public Schools website and the Scotch Plains-Fanwood Patch.
Local projects will definitely increase your taxes in the short-term, but it’s important to consider the effects of repairs or renovations on home values. Poorly maintained schools or roads may drive down home values in your community and affect sales prices. Communities that prioritize improvements are more likely to thrive for years to come, making them a good place to put down roots.
How Much Do Residents Pay?
Scotch Plains homeowners paid an average of about $13,419 in real estate taxes in 2018. Generally, taxpayers who own smaller homes or those appraised at lower amounts pay lower taxes, while residents who own large, updated properties pay more than the average amount. For more information about tax rates for the town of Scotch Plains-Fanwood, please visit the Tax Collection and Finance page on the Scotch Plains-Fanwood Township website by clicking here.
The Age of Your Home Will Affect Your Tax Payment
Residents who buy new construction homes usually spend more on property taxes than homeowners who opt for older homes. Your home’s value is influenced by its age, size and condition. Because brand new homes are in excellent condition, their appraised value is usually higher than older homes of the same size. Taxes for new homes are usually based on the sale price of your home or the appraised value. Your builder can provide you with information regarding estimated property taxes for the various floor plans you’re considering.
Although no one likes paying higher taxes, your taxes may have less of an impact on your monthly or yearly living costs than you might think. Unlike residents of older homes, you probably won’t need to repair or replace anything in your newly built home for quite some time. New homeowners usually don’t have to worry about faulty water heaters, leaky roofs or plumbing, deteriorating sewer pipes and other home maintenance problems that affect older homes. If anything does go wrong with your home, it will likely be covered the builder’s one-year home warranty.
Homeowners spend an average of $4,958 in yearly repair costs, according to a Porch.com survey. When you buy a new construction home, the money you save on repairs may more than cover the bump in your tax bill.
Country Classics is proud to have built and sold seven beautiful single family homes in the heart of Scotch Plains, NJ. This outstanding community may be sold out, but we have several other new home opportunities in the Central New Jersey area. Contact us today to learn more!