How Much Do Home Owners In Colorado Spend On Property Taxes?
April marks the tax payment season once again and in Colorado, home owners pay the third-lowest effective real estate tax rate in the U.S. based on 2018 data.
However, home owners in the state pay the 21st lowest amount on property taxes nationwide when taking high home prices into account. The median price of a house in the state ranks as the fifth most expensive in the country. As of March, some cities such as Denver have average homes priced at $415,000.
Cities With High Taxes
Residents pay an average of $2,241 for effective real estate taxes compared to the national average of almost $3,500, according to a recent tax survey. If you think taxes in Colorado are still expensive, you’re somehow luck that you didn’t decide to live in New Jersey where residents pay $8,780 on average.
If you plan to buy a house this year, the actual cost of property taxes will definitely depend on where you want to live in the state. Homes in Denver and other metro areas are more likely to be expensive, hence increasing your tax payments. The tax survey showed that the average property tax in the city costs $2,529, while median taxes in Fort Collins and Greely cost nearly $2,000 and $1,520, respectively.
Home owners in Boulder pay the most at $3,506 on average, while those in Colorado Springs spend the least on taxes at almost $1,300. If you’re unsure where to buy, you should consult an expert in residential property management. In Centennial, CO, homes could be cheaper than most parts of the state.
Expert Advice And Market Trends
First-time investors should also consider discussing their options with a property manager, especially if they want to buy a property and have it rented out. Despite high home prices, sellers don’t really have the upper-hand particularly in the luxury home market where properties cost more than $1 million. This occurred as buyers in the lower price segments hold off on buying a house, due to the expensive price tags even if values have begun to drop recently in some cities.
In fact, some sellers have decided to lower their asking prices to close a sale, although don’t expect rock-bottom prices. Median values remain steady at the $400,000 mark even with the reluctance of several buyers. But for those who have the money, now could be a good time to buy a house because of the weaker competition.
Bidding wars used to be a reason why many are priced out of the market, as some people are willing to pay above the asking price especially for strategically located properties. While Denver remains a hot market, consider searching in suburban areas to increase your chances of finding more homes and fewer buyers.
Conclusion
Other factors could determine the actual cost of property taxes, aside from your home’s value and its location. Consult a long-time real estate investment manager to know more. The same thing applies to those who plan to sell their homes and finally, don’t forget to pay your property taxes by April 30, 2019.
