All property owners must pay general real estate taxes. These taxes are also called “ad valorem” taxes because the amount of the taxes varies, according to the value of your property. General real estate is levied for the operations of various governmental agencies and municipalities. Other taxing bodies may include school districts, drainage, water, sanitary, and recreation districts. Properties are valued or assessed by the county assessor.

There are two ways to pay your property taxes:

1. Monthly
2. Bi-Annually


If you select this option, your annual tax amount will be divided into 12 equal payments that will be added to your mortgage payment. Your mortgage company will require you to set up an impound account at the close of escrow. The dollar amount that you put into the account will be equal to between 4-10 months of property taxes. (The exact amount is determined by your lender and the time of the year you are closing escrow.) If you put down less than 20% on the purchase of your home, the lender may require that you pay your taxes monthly.



The tax year is divided into two sections. July 1st – December 31st & January 1st – June 30th If you select this option, your annual tax amount will be divided into 2 equal payments. You will receive one tax bill on November 1st that is considered late after December 10th and another on February 1st that is late after April 10th. With this option, it is important to understand that the county tax assessor tends to run a little behind with respect to home sales. The first one or two tax bills that you receive could be based on the old tax base, (the value the previous owner was taxed at), as opposed to the value that you paid for the home. Do not get excited, your total taxes will be between 1% – 1.25% of your purchase price. When the county catches up on things, they will send you a “Supplemental Tax Bill” to make up for their error.


Accountants typically recommend paying your taxes bi-annually. The idea is “Why give the government your money earlier than you have to so they can make interest on it?” If you are disciplined enough to put aside money for taxes each month, then you can benefit from the interest. Ultimately, you need to select the payment option that makes the most sense
for your financial situation.

The following links will provide valuable information on the home buying process:

    • PRE-APPROVAL VS. PRE-QUALIFICATION Pre-approval involves a comprehensive review of your financial background by a lender, while pre-qualification is a preliminary assessment based on basic information provided by you.
    • CLOSING COSTSClosing costs are the fees and expenses associated with finalizing a real estate transaction, typically including loan origination fees, appraisal fees, and title insurance.
    • BUYER DO’S AND DON’TSAdvice for buyers on getting pre-approved for a mortgage, researching neighborhoods thoroughly, and more, while covering things to avoid, such as making major purchases before closing and skipping the home inspection.
    • CONSIDER YOUR BUYING OPTIONS When considering your buying options, Dore and Geoff Baker encourage you to explore different neighborhoods and property types to find the best fit for your needs, ensuring you make a well-informed decision.
    • MAKING AN OFFER When it comes to making an offer on a home, Dore and Geoff Baker advise careful consideration and strategic planning to ensure you present a compelling offer that aligns with your budget and goals.
    • KEY CONCEPTS Understanding the key concepts in making an offer on a home, including earnest money, escrow, contingencies, and title insurance, is crucial for a smooth and successful real estate transaction.
    • DISCLOSURE & DISCOVERY Disclosure and Discovery rules ensure that buyers are fully informed about the property’s condition and any potential issues before completing the purchase.
    • HOME INSPECTION Home inspection is a crucial step in making an offer on a home, providing buyers with a detailed assessment of the property’s condition to make an informed decision.
    • CLOSING ON YOUR NEW HOME The final step in the home buying process, where ownership is transferred from the seller to the buyer, and all remaining paperwork and payments are completed.
    • BUYER’S ESCROW PLANNING TIMELINE Use this chart to draft your buyer’s escrow planning timeline, ensuring you stay on track and meet key deadlines throughout the home buying process.