As real estate attorneys, we’re often the last professionals involved before a transaction becomes official—which gives us a clear view of what’s happening at the closing table. Lately, we’ve seen a troubling pattern: real estate closings falling through at the last minute because of property taxes.
Even after a buyer is pre-approved, the deal can fall apart in the final stages—not because of the property itself, but because a reassessment causes the projected monthly payments to jump, derailing the loan approval.
What’s Happening
In Illinois, property taxes are assessed in arrears—meaning the tax bill reflects the prior year’s valuation, not what the new buyer will actually owe. This is especially problematic when:
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The home was recently renovated or expanded
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Property values in the area have increased significantly
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The assessor has reassessed the home at a much higher value
Nationwide, home prices have climbed nearly 55% since 2020 (FHFA), and some local assessments are finally catching up—resulting in big spikes in property taxes.
Why It Matters
Lenders base mortgage approval on a buyer’s total monthly payment—including principal, interest, taxes, and insurance (PITI). If the updated tax bill increases the monthly cost too much, the buyer may no longer qualify for the loan—even if everything else was in order. It’s not that buyers are walking away—it’s that the financing can’t go through.
This trend is a powerful reminder that real estate is a team sport, and every part of the transaction needs expert attention.
Bottom Line
Summer 2025 isn’t just bringing higher temperatures—it’s bringing higher stakes. If you’re buying or selling, you need a strong, experienced team on your side—including a knowledgeable real estate attorney (like us!), a vigilant agent, a great lender, and trusted local experts. If you’re buying or selling a home this summer, don’t let tax surprises derail your deal.
Reach out to Greenberg & Sinkovits today—we can connect you with trusted agents, tax appeal specialists, and other professionals who will help make sure your closing goes smoothly, and nothing falls through the cracks.
