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Buying a house and the property Tax

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  • 18-03-2013 3:10pm
    #1
    highgiant1985
    Registered Users Posts: 1,777 ✭✭✭


    As a buyer what information am I entitled to from potential sellers in terms of the property tax?

    i.e. Basically I don't just want to take their verbal word that the band they say they are valuing the house at is what they've returned. Can I request something from them like you can for the BER Cert.


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    #2
    Cuddlesworth
    Registered Users Posts: 13,994 ✭✭✭✭Cuddlesworth


    I don't think I understand the question.

    If you buy a house in the near future, then don't you have pretty obvious and irrefutable proof of its value when dealing with Revenue?


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    #3
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    Your solicitor will not complete the sale without proof that they have paid the household charge. The property tax is not due yet, so it will be up to you to self assess the value, not the seller.


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    #4
    highgiant1985
    Registered Users Posts: 1,777 ✭✭✭highgiant1985


    Cuddlesworth wrote: »
    I don't think I understand the question.

    If you buy a house in the near future, then don't you have pretty obvious and irrefutable proof of its value when dealing with Revenue?

    where I'm coming from is if the seller is agreeing a sale price of e.g. 160k but the property tax is being paid on < 150k I'd want to renegotiate with the seller.

    I should say I'm only looking at houses at the moment so I won't own the property 1st may which is why I'm asking the question.


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    #5
    Cuddlesworth
    Registered Users Posts: 13,994 ✭✭✭✭Cuddlesworth


    highgiant1985 wrote: »
    where I'm coming from is if the seller is agreeing a sale price of e.g. 160k but the property tax is being paid on < 150k I'd want to renegotiate with the seller.

    I should say I'm only looking at houses at the moment so I won't own the property 1st may which is why I'm asking the question.

    Your going to be laughed out of a room if you think a .18% tax rate is going to give you negotiating power based on what the seller pays.


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    #6
    Cathmandooo
    Registered Users Posts: 17,324 ✭✭✭✭Cathmandooo


    The property tax system isn't in place and active yet so there's still a lot of speculation about how things will pan out. It's self assessed based on what has sold around you, if you find a house for sale is in a bracket lower than its sale price the there's nothing stopping you from dropping your offer to reflect the property tax bracket. However, the seller doesn't have to accept your offer and another buyer could offer more.

    From what I've read I don't think the seller is liable for back tax but the new tax for that house will be in the higher bracket from then on and will raise the average of the prices in the area


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    #7
    flintash
    Registered Users Posts: 353 ✭✭flintash


    highgiant1985 wrote: »
    where I'm coming from is if the seller is agreeing a sale price of e.g. 160k but the property tax is being paid on < 150k I'd want to renegotiate with the seller.

    I should say I'm only looking at houses at the moment so I won't own the property 1st may which is why I'm asking the question.
    Seller is valuing the house over 100-150k and you paying 160 ? :D LOL


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    #8
    highgiant1985
    Registered Users Posts: 1,777 ✭✭✭highgiant1985


    flintash wrote: »
    Seller is valuing the house over 100-150k and you paying 160 ? :D LOL

    To be clear I've not actually made an offer on any house but thats the type of thing I want to avoid :D

    I'll be buying a house at a fair price I can afford and for what I think its worth. But if a seller is valuing it and a lower price range then I'd love a discussion with them as to why I should pay above that range. I'm not saying I wouldn't pay above the range if I think its the right house for me but I think its something that should be reviewed as part of the decision making process.


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    #9
    highgiant1985
    Registered Users Posts: 1,777 ✭✭✭highgiant1985


    Cuddlesworth wrote: »
    Your going to be laughed out of a room if you think a .18% tax rate is going to give you negotiating power based on what the seller pays.

    I'd want to know this information ideally before I make a bid.

    I really don't think its unreasonable for me to expect to know how the current owner values the property for this return.

    I also don't think its unreasonable to include this information as part of my overall evaluation process for deciding what bid I should place on a house.

    It may only be a .18 rate now but thats only for the first 3 years.


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    #10
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Cuddlesworth wrote: »
    Your going to be laughed out of a room if you think a .18% tax rate is going to give you negotiating power based on what the seller pays.

    So it seems the buyer only has info on the selling prices of houses from the PPR(post 2010) to try to make an estimate of how much tax is to pay from lets say the 2013 valuation of it made by the seller.(actual valuation not publically available except for the estimate from the Revenue website map)

    The buyer should be allowed to have access to the current rate of property tax on the house, that's all the OP is asking.


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