Only after the title report came in did a Long Island, New York, buyer learn the home's taxes were not under $9,000 as advertised. Without the seller's 50% school-tax credit, the annual total was close to $14,000.
Here's what to know
The seller's agent had promoted the lower taxes, including village charges, in a flyer, an MLS one sheet, an Instagram post, and an Instagram video. The buyer said that by the time the title report showed otherwise, their offer had been accepted and the inspection was already complete.
In a Reddit thread in r/FirstTimeHomeBuyer, the buyer said the seller, who was older, had a 50% credit on school taxes. They also said they had checked the figures with their own agent and on the county assessor website before the title report made the issue clear.
Without that credit, the home's yearly taxes would be $5,000 more than the buyer had anticipated.
"This is a 50% jump in the budgeted amount and it hurts," they wrote in a comment.
One commenter said: "The way OP words it sounds like the realtor typed it in the actual MLS property description and put it on the flyer. That would not be automatic."
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More background
Some users said the lesson was that tax records can reflect owner-specific breaks.
"Estimating taxes can be difficult, and you should not assume they will stay at the same rate," one user said.
Another person who said they were a Realtor on Long Island believed the agents should have spotted the problem: "This is common amongst agents and it's frustrating. I always verify. Both agents failed you. They should have included that credit that was on the county website back into the taxes."
What can be done?
Buyers need to check the total tax line and look at the exemptions behind it as well. One user said buyers can use county websites to see "exactly what the taxes are and the exemptions a homeowner is receiving and how much they are."
They also cautioned against treating marketing flyers and MLS entries as final answers. "MLS is not always accurate," one person wrote. "Always cross-reference with records from the clerk or assessor office."
At least the discrepancy appeared in the title report before closing instead of after the purchase. The buyer said they had contacted an attorney, and one user noted that if a buyer walks away, the return of earnest money depends on the wording of the contract.
Where can I learn more?
Tax surprises and paperwork mistakes can make a home more expensive than expected. These stories deal with last-minute tax increases, escrow errors, and unexpected bills.
• A buyer learned days before closing that higher taxes would push the mortgage up 10%.
• A new homeowner found an escrow tax mix-up, and a mailing form could recover money.
• In California, a buyer opened a $57,000 tax bill after closing, then learned it was not theirs.
• One homeowner saw an assessed value jump 40%, and an appeal could save $5,000 yearly.
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