How can Property taxes affect you negatively in the sale of your Miami Home?
It is time for you toroll up your sleeves and button up your shirts and have your best poker face on. You should be headed towards the county appraisal office and dispute your property assessment. Property taxes are around the corner and the tax bills are always send by Nov 1. But according to The Miami Herald don’t hold your breath for a big difference in your property tax.Click here to go to Miami Dade websiteIt is a fact We have seen declining markets around the nation, Florida has been one of the top states of foreclosure defaults. The Real Estate market has drop more than 30 percent in the last year. Do you think you should see a big difference in your property tax bill? Back in January Governor Charlie Crist proposed a new property tax reform it was meant to lower your tax bill on your home. Did it work? It did increases the homestead from 25,0000 to 50,000 for primary homes but how much of a difference can this make when the assessed value stills remains the same? Not only will you be paying the same property taxes you did a year ago but property taxes can and will affect the sale of your home.
As property value declines and mortgage guide lines increases most buyers would need more money today than they did 2 years ago. The stated stated programs, no money down, and 100% financing are ancient history. Even though interest rates remain low and property value decrease many home buyers today are not able to qualify for a home loan.
Example.
The current median Miami home price in Dade County is 230,000 let’s make the assumption that your Miami home two years ago was appraised at 330,000 considering a 30% percent drop it is now 230,000 this is your new market value. And a potential buyer puts an offer and now is going to seek for financing the purchase which is a very common procedure buyers take when purchasing their home. Let’s assume the buyer has good credit and he qualifies for 97% financing.
That would mean the buyer would finance 223,100 at 30 year loan with a rate of 6.7 % this will mean a 1439.62 mortgage payment which is not bad considering a household income of 75K. Please make a note if you wanted to rent the same house it would cost you around 1,350 so again that’s not bad.
Most lenders such as Bankofamerica, chase, and wells fargo now require taxes and insurance to be escrow that would mean the buyer will be paying the taxes and insurance on a monthly basis including with the mortgage. Today’s buyer will not be paying taxes on his 230,000 purchase he will be paying the same taxes the seller paid the previous year let me remind you he purchased it at 330,000 this will mean taxes of at least $ 5,000 a year or $416 a month depending of the exemptions and the mileage rate. The insurance would be around $3,000 a year an additional $250 a month and being very conservative. The buyer household expense just went up by 30% this can cause a buyer not to qualify and withdraw from the contract. The After Math can be worst now that your home goes back in the market in can be much more difficult to sale. The window of opportunity was lost considering the first 60 days are the most important days in the marketing of your home. And NO!! I know what you are thinking the deposit is returned because the offer was most likely contingent to financing.
Now property taxes are about 28% percent of your mortgage monthly payment. If property taxes were slightly lower by 10% it would mean more buyers available to buy your home. Property taxes affect everyone not just Miami home sellers and Miami home buyers. Now you know property taxes can affect you on the sale of your home. Sing up to my newsletter and receive updates every month. If you would like to know how to dispute your property please email me at mdelgado@globalmarketrealty.com or call me at ..
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.
How can Property taxes affect you negatively in the sale of your Miami Home?
It is time for you toroll up your sleeves and button up your shirts and have your best poker face on. You should be headed towards the county appraisal office and dispute your property assessment. Property taxes are around the corner and the tax bills are always send by Nov 1. But according to The Miami Herald don’t hold your breath for a big difference in your property tax. Click here to go to Miami Dade website It is a fact We have seen declining markets around the nation, Florida has been one of the top states of foreclosure defaults. The Real Estate market has drop more than 30 percent in the last year. Do you think you should see a big difference in your property tax bill? Back in January Governor Charlie Crist proposed a new property tax reform it was meant to lower your tax bill on your home. Did it work? It did increases the homestead from 25,0000 to 50,000 for primary homes but how much of a difference can this make when the assessed value stills remains the same? Not only will you be paying the same property taxes you did a year ago but property taxes can and will affect the sale of your home.
As property value declines and mortgage guide lines increases most buyers would need more money today than they did 2 years ago. The stated stated programs, no money down, and 100% financing are ancient history. Even though interest rates remain low and property value decrease many home buyers today are not able to qualify for a home loan.
Example.
The current median Miami home price in Dade County is 230,000 let’s make the assumption that your Miami home two years ago was appraised at 330,000 considering a 30% percent drop it is now 230,000 this is your new market value. And a potential buyer puts an offer and now is going to seek for financing the purchase which is a very common procedure buyers take when purchasing their home. Let’s assume the buyer has good credit and he qualifies for 97% financing.
That would mean the buyer would finance 223,100 at 30 year loan with a rate of 6.7 % this will mean a 1439.62 mortgage payment which is not bad considering a household income of 75K. Please make a note if you wanted to rent the same house it would cost you around 1,350 so again that’s not bad.
Most lenders such as Bankofamerica, chase, and wells fargo now require taxes and insurance to be escrow that would mean the buyer will be paying the taxes and insurance on a monthly basis including with the mortgage. Today’s buyer will not be paying taxes on his 230,000 purchase he will be paying the same taxes the seller paid the previous year let me remind you he purchased it at 330,000 this will mean taxes of at least $ 5,000 a year or $416 a month depending of the exemptions and the mileage rate. The insurance would be around $3,000 a year an additional $250 a month and being very conservative. The buyer household expense just went up by 30% this can cause a buyer not to qualify and withdraw from the contract. The After Math can be worst now that your home goes back in the market in can be much more difficult to sale. The window of opportunity was lost considering the first 60 days are the most important days in the marketing of your home. And NO!! I know what you are thinking the deposit is returned because the offer was most likely contingent to financing.
Now property taxes are about 28% percent of your mortgage monthly payment. If property taxes were slightly lower by 10% it would mean more buyers available to buy your home. Property taxes affect everyone not just Miami home sellers and Miami home buyers. Now you know property taxes can affect you on the sale of your home. Sing up to my newsletter and receive updates every month. If you would like to know how to dispute your property please email me at mdelgado@globalmarketrealty.com or call me at ..
Read Also
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.
Read also.