Long Island buyer finds property taxes are $5,000 more than listed because of seller-only credit

"This is a 50% jump in the budgeted amount and it hurts."

A Long Island, New York, homebuyer says they only discovered after the title report arrived that the property's taxes were not below $9,000, as advertised. Once the seller's 50% school-tax credit was removed, the annual bill was closer to $14,000.

What happened

The seller's agent had highlighted the lower tax figure, including village charges, in a flyer, an MLS one-sheet, an Instagram post, and an Instagram video. By the time the title report revealed the higher amount, the buyer said their offer had already been accepted and the inspection was finished.

In a Reddit post in r/FirstTimeHomeBuyer, the buyer said the seller was older and received a 50% credit on school taxes. They added that they had checked the numbers with their own agent and on the county assessor's website before the title report exposed the issue.

Without that credit, the home's yearly taxes were about $5,000 higher than the buyer expected.

"This is a 50% jump in the budgeted amount and it hurts," they wrote in a comment.

One commenter replied, "The way OP words it sounds like the realtor typed it in the actual MLS property description and put it on the flyer. That would not be automatic."

More context

Several users said the experience showed that tax records can include owner-specific exemptions.

"Estimating taxes can be difficult, and you should not assume they will stay at the same rate," one user said.

Another commenter, who said they were a Realtor on Long Island, argued that both agents should have caught the issue: "This is common amongst agents and it's frustrating. I always verify. Both agents failed you. They should have included that credit that was on the county website back into the taxes."

What buyers should check

Buyers should review the total tax amount and also examine the exemptions behind it. One user said county websites can show "exactly what the taxes are and the exemptions a homeowner is receiving and how much they are."

They also warned against treating marketing flyers and MLS listings as the final word. "MLS is not always accurate," one person wrote. "Always cross-reference with records from the clerk or assessor office."

At least the mismatch surfaced in the title report before closing instead of after the sale. The buyer said they had contacted an attorney, and one user noted that if a buyer backs out, the return of earnest money depends on the contract language.

Related examples

Tax surprises and paperwork errors can make a home cost more than expected. These cases involve sudden tax increases, escrow mistakes, and unexpected bills.

• A buyer learned shortly before closing that higher taxes would raise the mortgage by 10%.

• A new homeowner discovered an escrow tax error, and a mailing form could help recover money.

• In California, a buyer received a $57,000 tax bill after closing, then learned it was not theirs.

• One homeowner saw an assessed value rise 40%, and an appeal could save $5,000 a year.