The Real Deal Miami

Foreclosures may bring hidden costs

October 09, 2008 10:58AM

Sales of foreclosed homes may do nothing for high property tax bills. As foreclosures and short sales make up an increasing share of the real estate market in Broward and Palm Beach counties, buyers should realize that their bargains may have limits. State regulations bar counties from factoring in foreclosures and other distressed sales in which the seller is forced to accept less money than the market price. Appraisers and some real estate agents worry unsuspecting buyers will expect a tax windfall, and see much higher rates than they anticipate.