Property Tax Spike Hits New Build Buyers — Here’s How to Protect Yours.

The theme of the week is “property taxes”. Homeowners in central Ohio know what I’m talking about. They have been on the rise in recent years and mortgage payments are starting to really weigh on folk’s wallets.

This week we discuss a long-standing issue with property taxes and new builds as well as what Ohio legislatures are trying to do to bring down some of the burden.

Let’s dive in!

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Read time: ~5 minutes

Rates ended LOWER compared to last week, and volatility was HIGH. Rates are in the mid-6% range for most loan types without paying discount points. Paying discount points can get you in the high 5’s - low 6's.

Property Tax Spike Hits New Build Buyers — Here’s How to Protect Yours.

Ash and I bought our first home in 2009. We had our first kid on the way and wanted to establish roots. I was not in lending at the time and barely could define “mortgage”. There was a new-build condo community in Worthington that caught our eye so we sat with the builder and their lender to get some idea of the financing. Everything looked great…almost too great.

Long story short, we bought the condo and everything was going well until early 2011 when we got a note from our loan servicer that said we had an escrow shortage. The servicer didn’t have enough to cover our property tax bill.

Huh?

We needed to reimburse the servicer many thousands AND our mortgage payment spiked to cover the new property taxes moving forward. It wasn’t until I became a loan officer that I realized what the builder and their in-house lender had done—they artificially suppressed our taxes to make the payment more attractive.

Kreg and I have helped buyers finance new builds a lot in our careers. While new builds carry a few nuances, there isn’t one bigger than property taxes.

Clients press purchase prices on new builds as high as they can go, putting undo pressure on debt-to-income limits. Lenders can technically use artificially lower estimates on taxes to help qualify the buyer. The issue, however, is that eventually the county auditor will assess the taxes, back taxes are typically due (especially in Ohio where taxes are paid in arrears) and the mortgage payments will adjust to the higher value.

A recent class action lawsuit alleges that one of the biggest homebuilders in the country and its in-house mortgage lender misled buyers of newly built homes by underestimating or omitting large portions of required property taxes in the advertised monthly payment projections.

What the Lawsuit Claims

• The builder and its financing arm allegedly presented low monthly payment estimates in sales pitches that did not include the full property tax burden.

• After closing, many buyers saw their monthly payments explode once the lender or a subsequent servicer recalculated escrow obligations to include all required property taxes (and even back taxes).

• In one cited example, a buyer was initially quoted a payment around $2,164 but ended up paying over $3,100 once full taxes and shortfalls were added.

• Plaintiffs’ counsel argue the practices amount to a “Monthly Payment Suppression Scheme” designed to lure homebuyers into commitments that later became unaffordable.

The crux: buyers were sold on “affordable payments” that didn’t fully reflect the real tax expense — and many only discovered the full burden once taxes were fully assessed.

Transparency is key. If Ash and I were aware that our payment would change, we could have budgeted or even socked away more in escrow every month to prepare for the bump so it didn’t hit us as hard.

The Plan to Stop Ohio’s Property Tax Rollercoaster 🎢

Speaking of property taxes…

If you’ve opened your property tax bill lately and felt your stomach drop, you’re not alone. Home values have soared across Central Ohio — but that means many of us are paying way more in property taxes than we expected.

The good news? A new Property Tax Working Group, created by Governor Mike DeWine, just dropped a detailed report full of ideas to cool down those rising bills and make the system fairer for everyone.

Here’s the breakdown of a few of the ideas that popped off the page to me — and why it matters for you, your neighbors, and your clients.

💡 Smarter Limits on Local Levies = Fewer Surprise Hikes

Some local levies have been running on autopilot, collecting more than needed as home values rise. The task force wants to give communities tools to trim or retire levies once they’ve done their job.

✅ Why it helps: Think of it like canceling a subscription you forgot you were paying for — you stop being charged for things that no longer serve a purpose.

💰 Putting a Cap on “Rainy-Day” Funds

Some local districts have been sitting on big reserves while still collecting new tax dollars. The proposal says: if a district is swimming in cash, it needs to justify it — or pass the savings back to taxpayers.

✅ Why it helps: Forces transparency and helps keep rates from creeping higher just because they can.

🧓 Real Relief for Seniors and Disabled Homeowners

Expanding the Homestead Exemption, which lowers taxable home value for qualifying residents and allowing property tax deferrals for older or disabled homeowners who’ve seen their taxes jump fast.

✅ Why it helps: It lets folks on fixed incomes stay in their homes without being taxed out of them. They can defer increases now and pay later (often when the home sells).

🧱 Building More Homes to Ease the Pressure

Central Ohio has a housing crunch — and when supply is tight, prices (and tax values) skyrocket. The task force calls for streamlining zoning and permits and fixing infrastructure bottlenecks so builders can actually build.

✅ Why it helps: More homes = less upward pressure on values = a gentler ride for your property taxes.

If these recommendations turn into law, you could see:

• More predictable property tax bills (no more “surprise” hikes after value reappraisals).

• Protection for seniors who want to age in place.

• Fairer taxes across neighborhoods — where the playing field is level no matter how your home is owned.

• A housing market that grows sustainably, not just expensively.

Put simply: the report gives lawmakers a blueprint for keeping homeownership affordable as Ohio grows.

Rebel 2026 - Speaker Reveal & Tickets Go On Sale 10/21

350 seats disappeared in 70 minutes, and those who waited missed out. That’s what happened at last year’s speaker reveal and we don’t want that happening to you this year.

What is Rebel?

Rebel is a one-day event where professional misfits, marketers, and entrepreneurs come together to burn the old playbook and build something better. Raw. Loud. Unlike anything this industry has seen.

Mark Your Calendars 📅 The big event will be on Thursday February 5th, 2026

But first…

RSVP for the LIVE Reveal

October 21 @ 12:00 PM EST | The First Transmission

• We will share some big surprises including the secret speaker lineup

• The unfiltered reason we built this event

• Your first chance at tickets before the industry even blinks

Two Ways We Can Help

1. Let’s collaborate – schedule a zoom meeting

2. Tough deal?  Let us help!

Don’t hesitate to reach out if you need anything at all. Have a wonderful week!