A South Carolina real estate licensee is explaining property taxes to a first-time buyer purchasing a $350,000 home in Anderson County as her primary residence. The seller has been paying taxes based on the 4% assessment ratio. The buyer asks whether she should expect to pay the same amount in property taxes as the seller paid. Which response is most accurate?
Correct Answer
C) No, the property will be reassessed at 6% until the buyer applies for and receives the 4% ratio.
The 4% owner-occupied assessment ratio does not transfer automatically from the seller to the buyer at closing. Upon change of ownership, the property reverts to the 6% assessment ratio by default. The buyer must independently apply to the county assessor's office and demonstrate that the property is her primary residence to receive the 4% rate. Until that application is approved, she will be taxed at the higher 6% rate, resulting in a significantly higher tax bill than the seller paid.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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