Real Estate
Average Calgary Home Tax Drops 13 Percent, Per Newly Released Assessments
December 25, 2011 | 
Author 
Approximately 66 percent of Calgary property owners saw a property tax reduction following the second decrease in assessed property values in as many years. A 13 percent decrease in value was seen for the average Calgary home as of July 1, 2009, the date which was used in the determine of taxes for 2010. Not included in the reduction is a tax increase of 4.79 percent that was approved last November by City Council. That increase will result in adding an average of $54 to property taxes.
A single-family home’s assessed value of $374,000 last July declined from $427,000 in July 2008. Condominium medium assessed values fell from $278,000 to $233,000 for the same period. City Assessor Stuart Dalgleish attributed the decrease to a weakening of the economy and a subsequently soft realty market. While a property tax decrease awaits some 70 percent of all homeowners, a 30 percent increase awaits the other 30 percent.
As with many provinces, Calgary’s home prices have experienced swings during the past couple of years. Soaring home values in 2008 and 2007 helped generate respective increases of 25 percent and 43 percent. However, the 2008 economic meltdown created a drop of four percent for that year that declined even more in 2009.
Eau Claire Community Association President Janet MacPhee said that lower assessed values are a mixed blessing, noting that no one is happy with high property taxes. She commented that cheaper home prices could help more people to purchase property in Eau Claire.
By: Alan B Zunec
Posted in Real Estate | 
Tags: Association President, Calgary Property, Condominium, Dalgleish, Eau Claire, Economic Meltdown, Economy, Home Values, July 1, Last November, Macphee, Mixed Blessing, Property Owners, Property Tax Reduction, Property Taxes, Property Values, Realty Market, Single Family, Swings | 
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Luxury Real Estate Marketing Essentials – The Definition of Luxury
If you are or aspire to become a luxury real estate marketing professional, it is important to have a clear definition of what luxury really is. The word luxury has become ubiquitous with marketing anything expensive. What makes something truly luxurious? Does it have to be expensive, rare, or just have a name brand? Is there such a thing as free luxury?
Luxury used to connote a product or service with a history of tradition, impeccable quality, and a pleasurable buying experience. It was associated with the highest standards of materials and production and only the most skillful artisans were allowed to work on these items. When those items were sold, the potential customers were treated to an experience of shopping that matched the quality of the item sold.
Men picked out fabrics for their handmade suits as they sipped the finest coffees or liquors provided by the establishments. They made appointments for fittings assuring a perfect fit. Shopping was theater. If the suit was damaged in any way, you could bring it back to have a whole rewoven, a seam repaired, or a button replaced, at no additional cost.
Women were treated to a fashion show while sipping champagne and munching finger sandwiches or sipping teas. They were invited to a large dressing room to try the clothing on with a seamstress at hand to modify the article if necessary.
In “luxury” hotels staffs were trained to exceed and anticipate a guest’s expectations. The concierge in these hotels understands guest’s needs and can recommend restaurants because they have eaten there. The elite concierge distinguishes himself/herself as a member of “The Golden Keys”, and they display those on their lapels. They earn these keys by knowing their cities intimately and recommending to a guest a unique visit or perspective suited to that individual. The best, and only the best, was the norm for these establishments.
Some brands maintain the standards of luxury. Others don’t; they imitate. It is important to understand all aspects of quality and grade of different items. Just because a brand name is on a pair of sunglasses is no guarantee that the finest materials in manufacturing were used. It means that the brand licensed its name for those sunglasses.
You have to know whether or not they are worth the price. Unparalleled service has no imitators. It is great or it isn’t.
Ultimately luxury is appreciation, and appreciation is a personal point of view. So the item, the service or the brand’s value is in the eyes and the psyche of the beholder. It does not require possession. Appreciation is free. Expressing one’s appreciation feels great. In the words of designer, Jeffrey Bilhuber, “I love luxury. I am convinced that luxury is part of what makes us human, that it brings us beauty and pleasure… It is inspiration and aspiration, something taught, something learned — an evolving appreciation of good, better, best.”
Free luxury surrounds us everywhere we go. It is evident in nature’s perfection, as even a snowflake is uniquely different from its counterparts. Free luxury can be seen in the vivid coloration of tropical birds, flowers, sea life, ocean waves, sea shells, etc. Finally, the ultimate luxury is life, itself, if you can simply appreciate it. And, so many of the best things in life are free.
What is your definition of luxury?
By: Ron Seigel
Posted in Real Estate | Tags: Artisans, Coffees, Concierge, Dressing Room, Establishments, Fashion Show, Finger Sandwiches, Golden Keys, Handmade Suits, Impeccable Quality, Lapels, Liquors, Luxury Hotels, Luxury Real Estate, Marketing Essentials, Perfect Fit, Real Estate Marketing, Seam, Seamstress, Staffs | No Comments »
The Secret to Controlling Buyer Demand For Your Home!
If you could control the demand for your home, wouldn’t you want to? Well, that is somewhat of a rhetorical question because any homeowner who could would want to turn on a buying frenzy for their home. What many home sellers don’t realize is that they truly can control demand for their home with one simple factor.
This one simple factor is price. This is probably not a surprise to you because basic economics dictates that there is one thing that affects demand more than anything else- and that one thing is price.
How you price your home is the most important factor in how much demand you’ll have for it. For example, some folks take the tactic that they should always start their price high knowing full well that the home is overpriced. They think that it’s fine to start high; they think to themselves, “We can always come down on price later.”
The problem with the high-price, maybe-we’ll-get-lucky scheme is that the amount of time to sell the home can be several times longer than it would be with a home that was priced right in the first place. The main reason for this is the supply and demand of your home. Each home has its own supply of buyers. Another way to look at it is that the demand for your home is directly proportional to how closely you price it to its Fair Market Value.
You can effectively control the demand for your home and how quickly it sells with the right asking price. If you price the home at fair market value, you’ll be attractive to 60% of the available buyers for a home in your range. On the contrary, if you price it above fair market value, you’ll reduce the number of buyers for your home to 10% or less of the available pool. Over pricing your property shrinks the prospective buyer pool by more than 50%. A property priced just 15% over the market value appeals to no one in your property pool.
So, is a high price more important to you than selling your home quickly (or at least in a reasonable amount of time)? You’ll have to be the judge of that. It is absolutely imperative that you price your home at Fair Market Value from the beginning of the listing. This strategy will almost guarantee that you’ll sell your home for the highest price in the least amount of time.
What most home sellers don’t know is that, often, 80% of the effectiveness of marketing a home is linked to what you price your home from the very beginning. You set a precedent to an extent.
The true Fair Market Value of your home is subjective and determined by what a buyer is willing to pay and you (the seller) are willing to sell for in today’s market conditions. That’s the true Fair Market Value of your home, and it is based on the needs and wants of both parties involved in the transaction.
With the Internet available to most people, today’s buyers have all the information that you have. They will base their offer on a comparison of your property to other sold (or available) properties in your area. They will evaluate your home against the others, comparing the cost verses the value, based on their needs.
By: Dirk Zeller
Good Real Estate Market Or Bad?
So you want to check out the real estate market, but you don’t know what to look at. You hear all sorts of stories about foreclosures, dropping home prices, lending problems, and the like. In fact, you are pretty sure it’s a bad market, right? NOT!
There are five (5) key statistics you need to look at to get a simple, but strong view! They are ‘Home Sales’, ‘Median Price’, ‘Inventory’, ‘Mortgage Rates’, and ‘Home Affordability’. These will paint a nice picture of what’s really going on.
From 1999 through 2005, home sales rose from 5.2 million to 7.1 million. Starting in 2006, home sales starting dropping, and in 2009 we were back to 2005 levels. This is what is known as a ‘Market Correction’. If you were a home owner, and trying to sell during this period, you know exactly what this is. If sales are down, usually that means prices are down as well. However the real story lies in the fact that from 2008 to 2009, home sales rose by 300,000 homes. Out of the slump? Well, let’s look further!
Median home prices dropped in 2009. In 2008 the median home price in America was $198,000, and in 2009 it dropped to $174,000. Not good, but explainable! For one there was a huge surge in distressed properties, which sell for 15% to 20% less than market value. Also, there was a huge influx of new home buyers, due to the government tax break, and these are typically lower cost homes. Lastly, there was a huge slowdown of high-end homes because jumbo loans became almost non-existent. So factor all this in, and the drop is very understandable! Bad market? Let’s look further!
The saying goes, if there is five or less months of inventory (number of homes on the market divided by the number sold), then it’s a seller’s market. Anything at six months or higher, it’s a buyers market. From 2003 to 2009, a span of seven years, we only had three seller’s markets, 2003, 2004, and 2005. 2009 has a nine month inventory, down from eleven months in 2008, ouch! The only thing to remember is that one half of the market are buyers, and the other half is sellers. An inventory of eleven months is darn good for buyers, half of the real estate market! So what’s my point, it’s always a good market, it only depends on what you are doing, buying or selling! So, is it a bad market? Let’s look further!
Anyone buying today, and financing, it is a tremendous market. Money is cheap these days, and history points this out. The trend is down, all the way from 10% in 1989, to now under 5%! No if, ands, or buts about it, the mortgage market is the best it has almost ever been, certainly the best over the last twenty years! So, is it a good market? Let’s take a look at the last, but not least, category – affordability!
Can you afford a home? Not a bad question if you’re getting into a mortgage. In fact, you really don’t have to do anything but give your lender all the facts, and loan guidelines will tell you what you can afford. Simply put, it’s a ratio between what you make, and what you spend. But there is a measurement for this, over time, and it’s called ‘affordability’. Affordability in the U.S. measures the ability to purchase a home. It’s the amount of a median family’s income consumed by the medium mortgage. In 1981 it took 36% of the family income to pay a mortgage. In 2009, it took only 15%, and this is a historic low!
If you are going to measure whether it’s a good real estate market or not, which of the above factors is important to you? Sure home sales are down, but beginning to rise again, so what! Median prices are down, but rising again, so what! Inventory shows us it’s a buyers market, so what! But, no matter if you are trying to sell a home, or buy a home, the major factors are interest rates, and affordability, right? It makes sense that if you’re going to sell a home, you want low-interest rates, so a potential buyer can by your home. The same goes for affordability. In fact, the same reasons apply to both sellers, and buyers.
The word: It’s a great real estate market, right now! Tell everyone you know!
Information on this article came from ‘The 5 Statistics Every Agent Should Know’, A Keller Williams Market Navigator, Vision and Opportunities publication.
By: George Klayer
Posted in Real Estate | Tags: All Sorts, Distressed Properties, Foreclosures, Government Tax, Home Affordability, Influx, Inventory Number, Jumbo Loans, Key Statistics, Median Home Price, Median Home Prices, Median Price, Mortgage Rates, New Home Buyers, S Market, Seven Years, Six Months, Slowdown, Slump, Tax Break | No Comments »
Beat the Mortgage Foreclosure Process and Get a New Home Mortgage Refinance Rate
Knowing that our monthly mortgage payment is dependent totally on the interest rate at which we got the loan in the first place and greatly affect our lives. In these days and times of instability in the housing market it would behoove all of us homeowners to take a second look at the feasibility of acquiring a new home mortgage refinance rate that will help you immensely.
If you want to learn what steps you need to be aware of in determining whether or not a refinance of your home mortgage loan would be right for you in that it would provide you with more money per month and knowing what information you need to know before you start talking to a lender. Then you need to read this article for that information.
By the end of this read you’ll be able to pretty much determine the steps that you need to know about so that you can have a handle on what to expect when you talking to your lender about a refinance.
Going into a bit more detail about understanding whether or not it would be to your advantage to refinance with a new rate depends on your current interest rate and the balance of your mortgage. If the balance if your mortgage is such that you can pay it off within a couple of years then it probably wouldn’t behoove you to refinance. Knowing that with any type of refinance condition comes with accessory points that means paying extra money for getting that refinance. If you have only a couple of years left on your mortgage then stay with what you have.
But if you find that you have a number of years left on your mortgage then the extra influx of money that you would see as part of the refinance might help you pay some bills off, save some money for college funds, improve your property and still come out with a lower monthly payment than what you’re paying now.
But it all starts at the lenders office. And the more information you have about your assessed value of your home and knowing whether real estate values in your area have been valuing up or down is important to know. This directly affects the interest rates and also your credit worthiness plays into the hand of the lender to see what rate you may get.
So now you should be able to know whether or not a home mortgage refinance rate would be good for your situation right now. Knowing who to talk too at the mortgage company will greatly enhance your chances of getting the deal that you deserve and also knowing what questions to ask.
By: Jim Guererro
Posted in Real Estate | Tags: Advantage, Current Interest Rate, Extra Money, Feasibility, Foreclosure Process, Home Mortgage Loan, Housing Market, Influx, Lenders, Mortgage Foreclosure, Mortgage Help, Mortgage Payment, Mortgage Process, Mortgage Rate, Mortgage Refinance, Real Estate, Refinance Loan, Refinance Mortgage, Refinance Rate, Valu | No Comments »
Four Tips to Help You Accurately Price Your Home in Today’s Market
An unrealistic asking price may impede the sale of your home. But undermining your profit margin is also unwise. Pricing your home accurately – especially in the middle of an entrenched buyer’s market – is always a bit challenging. But if you’re trying to sell a house or condo these days, intelligent pricing is critical. Those who are off the mark by a slight amount may wind up off target completely in terms of attracting a qualified and interested buyer, and those who price their home unreasonably high may be shooting themselves in the proverbial foot.
Here are four tips for figuring out how to price your property, without “leaving money on the table” by selling yourself short:
Know Your Primary Motive for Selling
Understanding why you want to sell is the first step, and the most important. If you are selling to capture capital gains, for example, your strategy regarding pricing will be much different that if you are selling to move to a new job in another city. Those selling to avoid imminent financial problems, for instance, may need to price their house lower – and sacrifice some of the proceeds – in order to inspire a faster sale. If you don’t need to sell by a particular deadline, you can afford to price your house at the high end of the spectrum and “fish” for a while for an interested buyer. After a couple of weeks you can adjust your price lower if you aren’t attracting enough interest.
Find Out What Buyers are Paying for Houses like Yours
To find out what buyers are paying for comparable houses, have a Realtor print out a market report that shows recent sales data for nearby homes with similar amenities and square footage. Compare the asking prices to the actual sales prices, to find out if other sellers have been pricing their houses too high. Accurate pricing usually reflects a gap of no more than 10 percent between what is asked and the final price. Study the “time on the market” data, to see how long it takes houses to sell. If they are selling faster than average, it may be because they are priced below average. If they stay on the market longer than normal, it may indicate that they are overpriced or need repairs that are not discounted from the price.
Price it Objectively
When housing prices are falling steadily it is easy for sellers to cling to a false sense of what their properties are really worth. That’s fine if you are just testing the waters, but it can be counterproductive if you intend to sell within a reasonable amount of time. Take the average price per square foot you gathered from your data analysis and multiply it by the number of square feet in your home to find out what the market’s average valuation for your house happens to be. Add value for extraordinary features like a new kitchen, a garage apartment, or an oversized lot. Subtract for such things as needed repairs or peeling paint, less bathrooms than other comparable homes, or heating and air conditioning systems that will soon need to be replaced.
Be Decisive
Decide ahead of time what constitutes a reasonable offer to purchase. Knowing what your bottom line final price is will help you make quick, clear decisions under pressure. Establish a price range that you consider acceptable, and if you aren’t getting results, be prepared to lower your price at strategic intervals of time. A good way to plan ahead for price adjustments is to create benchmark dates on a calendar. If you reach a benchmark and have not gotten the results you expected, be decisive and businesslike – not emotional – about changing your price. Be ready to recognize if the time is not right for you to reach your goals. Trying to sell when you aren’t convinced you’re ready to can be frustrating and will likely cost you more money in the long run. It may be better to wait for the market to rebound, perhaps leasing your home or taking out a home equity loan to tide you over in the meantime.
Another important thing to keep in mind regarding pricing is that buyers and Realtors search the MLS database using specific price parameters. If you aren’t within their search range they won’t even know your house is on the market. For example, if you hope to attract buyers who are shopping for homes within the $250,000 – $300,000 range but your home is priced at $315,000, you may be pricing yourself out of your target market. Similarly, if you are asking $300,000 for your home you may be connecting with a whole pool of buyers that wouldn’t find you if you were priced at $301,000, because they are only searching up to the round number price of $300,000.
By: Jeff Hammerberg
Posted in Real Estate | Tags: Amenities, Asking Price, Capital Gains, Fish, Gap, Houses, Interested Buyer, Money, Motive, New Job, Proceeds, Profit Margin, Proverbial Foot, Realtor, S Market, Sell A House, Sell House, Spectrum, Square Footage, Target | No Comments »
Siesta Key Real Estate – Wonderful Place to Buy Properties
Today’s Siesta Key will mesmerize you the moment you step into its world-famous fine white beaches. Siesta Key’s displays its unrivaled beauty to thousands of residents and tourists throughout the year, from sunrise to sunset. You’ll discover Siesta Key to have fine restaurants and plenty more to see.
In Siesta Key’s side streets and you’ll find everything from gulf front condominiums, apartments and villas to wonderful seaside estates. There are some neighborhoods in Siesta Key like the Bay Island. It is luxurious island living redefined. Just minutes from the charming environs of Siesta Village and world-famous Siesta Key Beach, with the urbane pleasures of nearby Sarasota at their doorstep, residents enjoy a life of entertainment and casual complexity. Home site in Bay Island are large with breathtaking scenery, together with bay and Gulf Views. Bay Island has a large estate manors built in traditional beach bungalow styles and Colonial.
Sara Sand is the west end of Siesta Key, you can enjoy a Gulf-side location and sits almost directly in the heart of the island’s Village, an array of restaurant choices from beach bites to fine dining, boutique shopping at its tropical finest and home to art galleries. Hidden Harbor is located on the east shore of Siesta Key, directly on Roberts Bay. Hidden Harbor is a quiet neighborhood in a highly sought-after location. Siesta Cove offers the relaxation within an easy walk and the ultimate in luxury. Point Crisp is where residents enjoy uniquely private setting just minutes from Gulf beaches and the dining, nightlife pleasures, and shopping of Siesta Village.
Siesta Isles offers a relaxed island lifestyle and a well-developed sense of community. Just a short walk away is Siesta Village with live music, nightclubs, fine restaurants, and island boutiques. Reels’ landing is direct nautical access to Sarasota Bay; Riesel’s Landing is a perennial favorite among yachters and fishermen. It is gated enclave on the east side of Siesta Key. The neighborhood Siesta Manor of Siesta Key is located just two blocks from Siesta Village and world famous Gulf beaches, Siesta Manor provides an unparalleled upscale lifestyle. On the north end of Siesta Key the Roberts Point is located, is a neighborhood lush with tropical landscaping and convenient to one of the nation’s highest-rated beaches, a thriving arts community and charming Siesta Village.
Depending on which map you looked at, Siesta Key was preciously called Sarasota Key or Little Sarasota Island or Clam Island, in the late 1800′s. Early Siesta Key is surroundings mainly by wild boars and wildcats, but hostile and the environment is beautiful. Or those who dared to tame its challenging landscape, settling here meant a life of hardscrabble survival.
You can also enjoy in the Siesta Key Real Estate. This gated community with ideal location. You can enjoy the tropical paradise within this gated and private neighborhood. These days, more and more people are buying homes and properties in Siesta Key real estate, since they can explore a lot in Siesta Key.
Eliza Maledevic Ayson
http://siestakeyrealestate.com
By: Eliza Maledevic
Posted in Real Estate | Tags: Beach Bungalow, Breathtaking Scenery, Gulf Beaches, Island Lifestyle, Key Real Estate, Luxurious Island, Manors, Music Nightclubs, Quiet Neighborhood, Restaurant Choices, Riesel, Sara Sand, Sarasota Bay, Side Streets, Siesta Beach, Siesta Key Beach, Siesta Key Real Estate, Siesta Village, Sunrise To Sunset, Unrivaled Beauty | No Comments »
Building Wealth Through Real Estate
When it comes to acquiring wealth, achieving financial independence is a key component. How do you achieve financial independence? We all probably have a different definition or dream in our heads, but to keep it simple, it’s when your passive income and your income from your portfolio are greater than your expenses. The key to reaching this point is to start investing wisely.
Many people choose to invest their money in the stock market. And while stocks can be a lucrative way to improving your financial situation, there is a better method. Stability is key, and stocks just can’t hang with real estate. When you purchase real estate as an investment you can easily get more for your money. In many cases, you will find a property and purchase it for much less than market value. For example, buying a property for $250,000 when the after repaired value is actually $400,000.
One of the best reasons to invest in real estate is leverage. With stocks, $200,000 will buy you exactly $200,000 worth of stocks, no more, no less. However with real estate, that same $200,000 can easily buy you as much as $1,000,000 worth of property, leveraged and putting 20% down. If both of these investments increase in value by 10% you will have only a 10% return on your stock money and a 50% return on the money you invested in real estate.
If you are the type of person who likes to take charge of your financial future, you can improve your real estate investment to add value. Renovating, making physical improvements or adding additions are all ways to increase the value of your property. You can even subdivide the property, raise the rents or convert the original usage to its highest and best use and increase the value of your investment. When it comes to stocks, there is nothing that you can do that will affect whether the price goes up or down.
To find a “good buy” with real estate, you need to watch for motivated sellers. If you can purchase a property from a seller who really wants to unload the property, you can many times get a great deal. Work on your negotiation skills as well to get an even better deal!
It is important to remember not to get emotionally involved with a property. Remember, this is an investment, not the home where you are going to raise your family. Fall in love with the deal, not the property! Remember that! It will serve you well!
Finally, one of the best perks to investing in real estate is enjoying your profits without paying taxes, (or at least deferring them!) You can simply refinance the property or use a 1031 Tax Deferred Exchange in order to acquire more real estate investments and further build your portfolio. Remember, the profits from loan proceeds are not taxable.
Everyone wants to achieve financial independence and true wealth and real estate is one of the best ways to build your financial portfolio and be in control of your own financial future!
By: Charrissa Cawley
Posted in Real Estate | Tags: Additions, Building Wealth, Buying A Property, Financial Future, Financial Independence, Financial Situation, Invest, Investments, Leverage, Motivated Sellers, Passive Income, Physical Improvements, Real Estate Investment, Rents, Stock Market, Stock Money, Stocks | No Comments »
Orillia Real Estate January 2011 Residential Statistics
This article deals with the recent single family residential sale statistics for Orillia, Ontario for the month of January 2011 and compares it to January 2010. There are so many different statistics that can be manipulated in many ways to produce either positives or negatives… Basically, what I was concerned with was the activity on our local real estate board with a focus on the average sale price and the sales/listing ratio.
Once again, I am strictly looking at single family dwellings that were reported to the Orillia & District Real Estate Board. I am not taking into consideration any commercial, multi-family, or rental dwellings.
January 2011:
Listings 127
Sales 32
Listings/Sales 25%
Average Sale Price $233,031
January, statistically speaking, was quieter than a year before. From personal experience, I have been busy but my clients are taking a more cautious approach to the start of the year. The average sale price for the month, $233,031, is far off the twelve month average (February 2010 – January 2011) of $262,189. This can be attributed to the relatively small sample size of 32 sales where a few lower priced sales can trend the average sale number downward.
Last year, the January 2010 numbers:
Listings 143
Sales 41
Listings/Sales 29%
Average Sale Price $244,036
So, for 2011, the single family residential market for the Orillia area has had nine fewer sales, resulting of a sales/listing ratio being down 4% and an average sales price being down $11,005 from a year ago at this date.
With February being a short month, the spring market is approaching and the numbers above should see a trend upwards based on the activity that has started in the past week or so. There have already been some larger waterfront listings brought to market and once the ice breaks, there will be more and more.
In terms of in-town homes, I am getting a lot of calls from people wanting to buy a home that has the ability to provide rental income as well. People are looking at the university and college students as a way to help pay off their mortgage.
I am really excited by the opportunities that I think the Orillia real estate market will provide for 2011… will you be part of it?
By: Bill P Jackson
Posted in Real Estate | Tags: Article Deals, Cautious Approach, Family Dwellings, Family Statistics, Local Real Estate, Month Of January, Orillia Area, Orillia Ontario, Personal Experience, Real Estate Board, Rental Dwellings, Residential Market, Single Family, Spring Market, Taking Into Consideration, Waterfront Listings | No Comments »
Understanding Property Taxes and Tax Exemptions
To calculate the property tax, the state’s tax rate is multiplied by the total assessed value of the property. You have to pay your property tax on an annual basis. However, most states allow homeowners to make payments in two installments.
Property Taxes and Mortgage Loans
If you apply for a mortgage, lenders will include the estimated property tax in your loan. They will set aside a fund that will be held in an escrow. When tax payments are due, the funds in escrow will be used to pay the county tax collector. The lender will submit the payments in your behalf.
In case a bank fails to withhold enough funds to pay the property tax, then it is your responsibility to pay the deficiency. There are also instances when mortgage lenders will not include property taxes in the home loan. In such cases, you are required to make the payments directly to the local tax office.
If you fail to pay the property tax of a mortgaged home, your lender will consider it as a default on your home loan. This can be used as a basis to start foreclosure proceedings. Your home will be sold and the money will be used to pay the tax debts.
Important Things to Know about Property Taxes
Almost 70 percent of a property tax will go to school districts to shoulder the costs of public education. The remaining proceeds will be distributed between local and county government agencies. Tax rates on properties are constant unless revised through legislation. Unfortunately, tax assessments can vary from year to year. That is because there are several factors that are considered to assess the real value of properties.
Most appraisers of real estate based their assessments on comparative sales report of other properties in the locality. Normally, a six month window is used to make the comparison. Other factors considered by appraisers include the historical value of the property and the potential income that can be generated from it.
You have the right to dispute the tax assessment on your property. This is particularly true if you fell that you have been overcharged. Remember that property assessors can also make mistakes. As a homeowner, you need to check the accuracy of the valuation statement. Look for the most common mistakes that can be committed by an assessor. These mistakes include incorrect address, inflated lot sizes, incorrect number of rooms, and inaccurate square footage.
It is advisable to seek ways how you can qualify for property tax exemptions. You might consider the Homestead exception which is applied on a property used as primary residence.
You can get an estimate of your property tax and possible exemptions if you apply for a new home loan. This estimate will also be given to those applying for mortgage refinancing. As a rule, you should always hire an accountant so you can apply for all available tax exemptions.
By: Rob K. Blake
Posted in Real Estate | Tags: Appraisers, County Government Agencies, Escrow, Foreclosure Proceedings, Important Things, Installments, Locality, Mortgage Lenders, Mortgage Loans, Property Tax, Property Taxes, Public Education, School Districts, Several Factors, Tax Assessment, Tax Assessments, Tax Debts, Tax Exemptions, Tax Payments, Tax Rates | No Comments »