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Easy to Find Cheap Homes for Sale, But Don't Expect Tax Breaks

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By : John Cutts    99 or more times read
Home buyers have enjoyed the ease by which they find cheap homes for sale in various South Carolina markets. However, majority of these home buyers have complained that they are being unfairly taxed because their property taxes are being based on the fair market value of their dwellings and not on the property's purchase price.

A number of residential property buyers have reported that they have found some of the best purchase deals in the state, with Columbia foreclosure homes and distressed dwellings in other parts of the state offered at very affordable prices. These buyers reveal that it is almost perfect, until they receive their property tax assessment reports.

As specified in local tax laws, assessors are ordered to assess taxes for residential properties and foreclosed homes in South Carolina based on the fair market value of the residence and not on its sales price. The rule was reportedly enacted to help lower taxes for residences in the whole state.

The problem with this rule, home buyers and homeowners have argued, is that the South Carolina housing market is a place where one can find cheap homes for sale by the thousands, which means that the values of residential properties have been dragged down by the high levels of foreclosures.

The huge supplies of foreclosed homes have resulted in prices of dwellings declining by 9.5% compared with 2008 levels. This, homeowners have argued, means that they currently own a property that can be worth less than their taxes since assessors are basing taxes on the original price of the property and not on the current value.

A number of legislators and real property experts have supported homeowners' claim, arguing that it is about time that the state changes its method of assessing property taxes. Experts have asserted that it is only fair for taxes to be based on the amount paid for the property by the buyer since it will be an accurate indicator of the market's current status.

While the debate is going on, most home buyers who are out to find cheap homes for sale are advised by analysts to include property taxes in their total purchase assessments. This way, they will not be taken by surprise when the time comes for them to pay their property taxes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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