Let’s face it, nobody likes to pay taxes. Taxes are a necessary evil to keep our government running. Understanding how taxes are levied might help ease the pain… or inspire you to get involved and have your opinion heard.
Virginia collects taxes on Real Estate a few different ways.
All property owners pay yearly property tax on the fair market value of their 
holdings. When you sell a home the Seller pays a Grantor’s tax, and in Loudoun, Fairfax, Prince William, and Arlington Counties, along with the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park, the Seller also pays a “Congestion Relief Fee” to the state of Virginia. The Buyer has transfer taxes that go to the city/county and the state of Virginia. As you can see, all parties in a Real Estate transaction get taxed on the purchase or sale of a home.
Property taxes are levied once a year by the county or city that you live in. They are paid in 2 installments throughout the year, usually December and July.
Usually your mortgage company escrows money from your monthly payment to cover your property taxes. Lenders do this to make sure the taxes on the home are being paid so there isn’t a lien placed on the property. The amount the property owner pays is determined by the fair market value of the property. An annual assessment program is used to calculate the amount. Owners pay a percentage, known as the property tax rate, on 100% of the fair market value as of January 1. Current years assessments are based on the past year sales. Assessed values are determined by a mass appraisal of similar properties that have been recently sold.
Don’t confuse an assessment with an appraisal or sales price. An appraisal is a detailed property valuation that a Lender performs at the time of the sale of a property. Sales price is the actual amount the property sold for. These numbers differ due to the complexity of Real Estate transactions. For example, the sales price of a home can differ from the assessed value or appraised value due to many external circumstances, such as the owner needing to sell quickly due to financial distress, or a homeowner selling their home to a family member at a price below market value.
Another way taxes are collected is at the settlement of the sale of all property. The Seller pays a Grantor’s tax, and in some jurisdictions a congestion relief tax. Both of these are calculated by a percentage of the value of the home, either the sales price or the appraised value, whichever is higher. The Virginia General Assembly currently has set the rate at $2.50 per $1,000. The purchaser pays recordation taxes to the county and state. These tax stamps vary between the jurisdictions and are sent to the clerk of the court.
Collecting Real Estate taxes is a large portion of revenue for both the state and local jurisdictions. In 2014, Real Estate construction contributed 6.1% to the nation’s economic output as measured by the Gross Domestic Product. Real Estate drives many facets of our economy, so therefore it makes sense that it is a large part of the tax base.
The JS Realty Team @ Samson Properties strives to keep our clients informed on all aspects of the Real Estate industry. Feel free to contact us with any questions or comments about Real Estate tax.
If you are looking to buy or sell a home, contact us today for a no-obligation consult!
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.
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What does “Short Sale” really mean?
Option 2 – Sell Short. This option requires you to ask the Lender if they would be willing to allow you to sell your property as a short sale and forgive you the amount you owe, plus closing cost.
We’ve got a great new listing in Herndon, VA!
Summer is just a few weeks away and one thing we love during the summer is delicious BBQ! We asked roughly 150 Loudoun County residents to help us narrow down the BEST BBQ in our area. And after whittling it down to the Top 5, we then, of course, had to taste for ourselves! We grabbed our buddy Brian from 
This amazing, family owned BBQ joint is worth the drive, no matter where you live! The menu is simple – mouth-watering meats and house made sides. Sauces are also made fresh, from scratch and from local beers, wines, and spirits. They have 16 beers on tap and feature a full bar. Bonus: Bacon on a stick!! Thick, crispy, ham-like bacon… on a stick. Yum.
ResQ BBQ just opened their first location! They’ve taken over the concession stand at Evergreen Sportsplex and the unique outdoor location makes it feel like you’re at a backyard BBQ. Their menu features an assortment of sandwiches, snacks, and a flavorful, juicy brisket.
Tender and tasty BBQ for sure. They have a good selection of meats, salads, sandwiches, chili, and “house made” side items. Do yourself a favor and order the BBQ-Ranch Beans. Those alone are worth the trip! Bonus: 1/2 Price Ribs on Tuesdays from 4-9PM, craft beers and Lost Rhino Root Beer on-tap!
A true BBQ “Joint”! This true North Carolina BBQ meat is hickory smoked, and the pork, beef and chicken are hand-shredded. Ribs fall off the bone and there are a great selection of sauces. The menu is simple and straightforward. All the sides are “house made” and very tasty. Bonus: Amazing corn bread and fresh baked pie!
An interesting twist on the traditional. This new, locally owned and operated spot is where taco meets BBQ. The Pit Master smokes all the meat for about 12 hours, then hand pulls it. Besides being able to build your own taco, the menu features a yummy chili (a family recipe!), salad options, and kids meals. Bonus: There’s a bar! And all meats, sauces, and most ingredients are gluten free!
interest rates from the low 3% to over 4.5%.
No one can tell for sure what rates will do, but everything I hear and read indicates that interest rates will rise gradually through 2015. We may see rates approaching 4.5% or even higher by the end of the year.
believe that rates will gradually increase. It is also reasonable to assume that rates may rise to the 5% mark by the end of 2015 or the first half of 2016.
Home Inspection – this is the time we ensure all home inspection items have been resolved satisfactorily.
While we are performing the walk-through, your JS Realty Agent will be checking off all items on the home inspection list that the Seller agreed to remedy. One by one we make sure those issues are taken care of, and when applicable, have a written and paid receipt from the contractor that performed the work.
If there are unresolved issues stemming from the walk-through, your JS Realty Agent will contact the listing Agent and work to resolve the issues. Once we are satisfied that the home is in the proper condition, we will have you sign off on the walk-through.
You make an offer on your dream home and within your offer there are several areas that you fill in that reference the word “contingency” – what does this mean, and why is it important?
you are allowed to void the contract and receive your 
From the Seller’s prospective all of the contingencies are a risk, and if you make the contingencies too long or to aggressive, you risk turning the Seller off in regards to your offer. Most Sellers are looking for short timelines and to secure the strongest offer they can get. So the bottom line is, keep your contingencies to a reasonable and attainable limit, protect yourself, but also help instill confidence and security within your offer to the Seller.
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