Attention Home Sellers: Watch Out for Property Tax Discrepancies!

Selling your home comes with a lot of moving parts, and one thing you should be prepared for is the possibility of discrepancies with your net proceeds at closing—especially when it comes to property taxes.

Here’s the situation: even if you've been paying your property taxes monthly through your mortgage, there’s a chance the title company will find that your mortgage company hasn't yet paid out the taxes. This could happen if your mortgage company hasn't sent the payment or if the county hasn’t cashed the check yet.

What does this mean for you? Your net proceeds—the amount of money you expect to walk away with after all the fees and payments—could decrease. This is because, depending on the timing, you may have to pay for the property taxes that haven’t been settled yet.

How can you prevent this from catching you by surprise? Stay in communication with both your mortgage company and the title company to ensure all taxes are paid and accounted for in the process.

The key takeaway: knowledge is power. Make sure you understand every step of the process, so there are no surprises at closing.