Yes and no. Usually a personal check is accepted for an initial (earnest money) deposit. However, some sellers may have specific requirements that a cashier's check only be submitted to escrow. If you are buying an REO, especially with a cash purchase, a cashier's check may be a requirement.

Any time you bring money in to close a sale (other than the initial deposit), a cashier's check or wire transfer is required. The escrow company will not take a personal check 3 days before closing.

Traditionally, when a house sold and transfer taxes are paid, the county would adjust the records and taxes would be assessed off the purchase price.

With the influx of re-assessments, the explanation now differs. Santa Clara County is assessing taxes based off the property's value.

The property's value would be the sales price, right?

Nope. Not always. Explain to me a house that sells for $200,000 cash when four other offers (loan contingent) were submitted on same property from $225K to $245K. What was the house worth?

Per the purchase contract, $200K. But if all the comps in the neighborhood sold for $235K to $250K, then the property's value would then be based on a number HIGHER than $200,000.

Now that I have more time to blog about this, let's discuss property taxes. I'm in agreement with any helpful cost-saving ideas, but this one is not as good as it sounds for all.

About two weeks ago I'm chatting with my plumber who told me about a letter he got in the mail informing him that he was paying too much for property taxes and for a small fee (~ $179) this company would re-assess the current value of his home and get the property taxes reduced to current value. All the while, I'm going through my stack of mail and lo and behold—MY copy of said letter. We got a good laugh out of it.

Then last week my father asked me if I know anything about sales in his neighborhood and reassessing value for property taxes. I told him the letter was a scam and not to get excited about it. He looked at me like, "How did you know I got a letter?"

So here's the deal. Yes, if you purchased a home three years ago for $750,000 and your next door neighbor just sold the same cookie-cutter house for $500,000, it's likely you can obtain a reduction in your property taxes. Property taxes were assessed at the time of last transfer and there is no incentive for the county to suddenly give you a 30% off sale as it reduces their revenue. You can request a re-assessment based on the decline in value illustrated by the sale of the house next door. (Emphasis on YOU.)

However–there is always a However–if you, like my parents, purchased their home 10+ years ago for $300,000, it's unlikely that the house is worth less than the purchase price. Despite market fluctuations, houses will hold and increase in value over time. Don't get caught up in a whirlwind expecting to save money on property taxes just because it sounds good. If you paid $300,000 for the house but the county deems it now worth $600,000, you've just opened a can of worms.

By now I think all homeowners in California have received a bill from a LA-area company offering to adjust our property taxes down to current values at a low cost of $179….assuming we act immediately they'll waive the $30 late fee!

Wow, what a great scam! Don't fall for it. It is possible to petition the county and reduce your property taxes, but you don't need to pay someone to do this for you! Read more this week about property taxes and adjustments….it may or may not apply to your situation!

As many first-time buyers are being "stimulated" into taking advantage of the housing market, keep in mind that regardless of your down payment, be it 20% or an FHA 3.5%, you need to budget for closing costs. Closing costs are in addition to your purchase price, and unless negotiated in the purchase contract, are the buyer's responsibility to pay.

Some loan packages allow you to roll the closing costs into the financing, but it does depend on how much money you have to put down on the house. If you are going FHA with 3.5% down, make sure you either ask for the seller to pay some of the closing costs or budget approximately 3% for closing costs in addition to your down payment.