Why do taxes of a property go up when it’s sold?

New homeowners are often perplexed when this happens, but there’s a reason why it does

On this episode of "You Have Real Estate with Justin Clark," Seminole County appraiser David Johnson to talk about home values and property taxes.

There can be a lot of confusion among new homebuyers when they see how much taxes on their property go up after the sale.

On this latest episode of “You Have Real Estate” with Attorney Justin Clark, Seminole County appraiser David Johnson gives insight on property taxes and home values in the area.

Johnson answered three key questions:

1. How much have home values gone up?

While Johnson was specifically speaking for Seminole County, what he said is a good reflection for the area as a whole when it pertains to how much home values have spiked in recent months.

“We are seeing about a 14% to 15% year-over-year increase in single-family home values,” he said.

2. Why do taxes go up when a property is bought?

Johnson said there can be a lot of angst among new homebuyers when they see their property taxes often double after a purchase.

The reason that is the case is because every time a property is sold, by law, the taxes reset to what the current market value is.

Unfortunately, it’s something that many people don’t know about.

“That’s where we get the phone calls,” Johnson said.

3. Why is it important to consult a professional?

Johnson said with the complications regarding appraisals and tax issues with home sales, it’s important to get a professional involved rather than try and save money by doing it yourself.

“They will guide you through this process,” he said. “It’s a very complicated process. It’s a very huge investment. They know all the potential pitfalls.”

For more information, watch the video above.