Barbara Brant's Blog
One thing that you’ll need to think about when you’re buying a home is that of property taxes. Many first-time homebuyers don’t even consider the property taxes in the midst of their excitement of buying the perfect home. There’s many different kinds of tax issues that homebuyers might face when they purchase a home. We’ll educate you on how to tackle the issue of property taxes.
Do Your Research
You should most definitely research property taxes before you buy a home. You don’t want to be surprised to find out that your new home will have special assessments or a huge tax rate increase in the near future. Some things to look out for:
- Tax rate increases
- Home reassessments
- Supplemental tax bills
The first question that you should ask your realtor is “What is the current tax bill?” This will give you a good starting point for your property tax research.
Supplemental Tax Bills
A supplemental tax bill is basically a new homeowner’s overlapping bill of the previous owner’s taxes. Sometimes, this can include construction or additions made to the home that have increased the property value. This is also known as a “reassessment of property value.” Work with your realtor to discover whether this will be an issue.
Multiple Taxes For One Property
Depending upon where you are, you could face more than one kind of property tax. Special taxes imposed by states, counties and districts, as well as water and sewer can create additional fees.
Why You Have An Escrow Account
Homeowners are often required to have an escrow account. This will set aside funds for these types of expenses. The loan company will give an estimate of the amount of taxes and insurance due. Then, costs such as taxes and insurance are taken out of this account. If you are paying these fees through an escrow account, you should keep a close eye on it. Sometimes, payments fail to be made on time. You as the homeowner are then responsible for any late fees. You want to avoid these problems by checking the account frequently.
How Property Taxes Are Calculated
Property taxes are generally based on the value of the home. Each state and city uses their own formulas in order to calculate these fees. This is what can make property taxes a bit unpredictable. Property taxes can increase or decrease over time due to these factors that are included in each municipality’s formula.
A tax credit is a rebate that’s provided by the city or state. This could be in the form of an income tax credit. As home values have risen, so haven’t property tax bills, so these credits are welcome in today’s economy.
Some people are eligible for property tax deferrals. This allows the homeowner to pay all or part of the property tax until a later date when a home is sold. Many deferrals are geared towards low-income homes and senior citizens. These people would most benefit from this type of savings. Be careful though if you fall into one of these categories. Some states have much higher income taxes than property taxes, so the fees end up evening out.
The most important thing you can do when it comes to property taxes is your research. Once you have numbers, you can make a more informed decision about purchasing a property.
If you’re on the hunt for a home, you’re undoubtedly excited. You might be eager to ask a lot of questions and get all the information that you can. You’re also probably eager to share quite a bit of information about yourself and your home purchase. While this is a great approach, this isn’t the case for everyone you’re involved with in your real estate transaction. When you’re dealing with the seller’s agent, more information isn’t always better. You don’t need to share as much information with them as you may think you do. Your agent as a buyer is your advocate. They do know a lot of information about you, and they should. Your buyer’s agent knows everything from your budget to your needs and wants. The seller’s agent doesn’t need to know any of this! This is why you hire a buyer’s agent in the first place. Here’s what you shouldn’t divulge to a seller’s agent and why:
Your Opinion Of The House
You’ll want to be as neutral as possible when it comes to how much you like or dislike a house. While it’s perfectly fine to let the agent know that you feel at home in the space and are interested in putting in an offer, you don't need to get into too many details.
On the flip side, if you have a few things that you don’t like about a house, you should keep those to yourself. You don’t want to decide to put an offer in on the home, only to be seen as a less than serious buyer. In hot markets, you should always give yourself the upper hand.
You should never let a seller’s agent know how much you’re looking to spend on a home. If sellers know how high or how low you’re willing to go on a home purchase, both the buyer and the seller should get a fair price for the home. Your goal as a buyer is to have your offer accepted at the best possible price.
Let Your Agent Do His Job
While it can be hard in the midst of excitement, you should really let your agent do most of the talking when it comes to a home purchase. Your agent can help you through everything from negotiations to working with your lender to navigating you through open houses. Your agent may even be able to attend quite a few open houses right along with you. This way, you’ll have someone else to do the talking for you. Just remember the tips above in case you’re flying solo through some home tours. While it’s great to be eager on your home search, it’s never to your benefit to be overzealous.
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Selling a home sometimes can be a hassle, particularly if a homebuyer wants to negotiate. Fortunately, expert real estate agents are happy to help you take the guesswork out of a home selling negotiation.
Ultimately, there are several reasons why you should consider hiring a real estate agent to handle a home selling negotiation, including:
1. A real estate agent boasts comprehensive experience with home selling negotiations.
Let's face it – a home selling negotiation can be stressful. But with a real estate agent at your disposal, you can receive plenty of guidance as you make the final push to sell your residence.
A real estate agent is a master of the art of negotiation. As such, he or she will help you seamlessly navigate a home selling negotiation.
Perhaps best of all, a real estate agent can help you up to date as a home selling negotiation approaches its conclusion. This housing market professional will even provide honest, unbiased recommendations, ensuring you can make informed decisions at each stage of a negotiation.
2. A real estate agent will ensure both you and a homebuyer get the best results possible.
As a home seller, your goal is to get the best price for your residence. Meanwhile, a homebuyer likely wants to purchase your residence at a price that suits his or her budget perfectly.
Finding common ground with a homebuyer may prove to be difficult. Lucky for you, a real estate agent will work with both a home seller and a homebuyer to guarantee both parties are satisfied with the end results of a negotiation.
A real estate agent will allocate the necessary time and resources to understand your home selling goals and help you plan accordingly.
Furthermore, this housing market professional will serve as a liaison between you and a homebuyer. He or she will work directly with you and a homebuyer to finalize a home sale agreement that meets the needs of both property seller and buyer.
3. A real estate agent will help you overcome any challenges during a home selling negotiation.
There is no need to let challenges arise during a home selling negotiation. Conversely, a real estate agent will help you identify any potential problems and mitigate such issues before they escalate.
For example, a homebuyer may make a variety of home improvement demands after a property inspection. And if a home seller refuses to complete these property improvements, a homebuyer may walk away from a home sale.
A real estate agent will help a home seller prep his or her house for a property inspection. Plus, he or she can provide details about a homebuyer's demands after a property inspection and help a home seller determine the best way to proceed.
Ready to finalize a home sale? Collaborate with a real estate agent – you'll be glad you did. A real estate agent will go above and beyond the call of duty to assist you during a home selling negotiation and ensure you can optimize the value of your house.