Real Estate For Beginners: Residential Property TaxesWritten by Nicole Soltau
Whenever you own a piece of land, you will be taxed for it. Whether it is commercial property or residential property, there is still a tax to pay, whether it is for a village, town, city, county, or state. Most residential private property taxes are handled on local level, going no higher than county. Depending on nature of business, it may be handled by a variety of entities, including state and federal agencies. Each specific area and state has its own way of levying property taxes. This article is intended as real estate for beginners and will focus on property taxes as they relate to residential private property. Your Credit Union financial advisor can also provide a good deal of valuable information; call today to schedule your free consultation.
How property taxes are used. Each locale uses revenue earned from property taxes for different purposes. It can be anything from road repairs and utility upkeep to firefighter salaries and emergency response. Most areas, however, use money received from property taxes for school districts. Taxes are levied and then distributed to schools in a district according to amount of money received from property taxes. This often puts homeowners in a bind, as most of them want quality education for children, but are reluctant to vote to pass measures that will result in a property tax increase.
How property taxes are determined. Before buying a home, it is important for real estate beginners to understand how amount you pay in property taxes is decided upon. Everyone pays a different amount, depending upon how much a home is worth. The tax rate for an area is same throughout that area, but due to varying home values, property tax you pay may be a little higher or lower than your neighbors.
If property tax rate in your area is 9 percent, and your home is assessed at 250,000 dollars, your yearly property tax would be 22,500 dollars. If your neighbor’s home were only assessed at 235,000 dollars, he or she would pay 21,150 dollars in taxes per year. Many areas have specified periods of time required for a new assessment. Most places require a new assessment every five to seven years. This means that your taxes could go up or down as your property value changes.
What goes into a property assessment? There are some guidelines assessors use when determining value of your home. By being acquainted with these, you will be more likely to understand why your home has been given a certain value. Here are most common benchmarks taken into consideration when determining a home’s value.
Choosing A RealtorWritten by Nicole Soltau
Purchasing a property, either as an investor or as a prospective homeowner can be one of most exhilarating and frightening experiences of your life. In both situations it is imperative that you find just right property at right price. With so many options to choose from it can quickly become overwhelming. Start with Credit Unions to help you make most of this exciting purchasing process.
Searching for right property can be exhausting. Not only do you have to keep a price range in mind but you also must search out elements of neighborhoods that are important to you. Choosing right realtor makes a difference between chaos and calm.
There are a few tips that you should keep in mind when choosing a realtor. Considering fact that you are making a major investment, it’s important that you locate a realtor you will feel comfortable working with. You will need to find a realtor who is competent and professional, as well as knowledgeable and who respects your time and fact that you are committing to a serious investment.
Although consumers are generally unaware of this fact; realtors are generally classified as either seller realtors or buyer realtors. This means that they must represent best interests of one or other. Far too often individuals who are searching for properties select a realtor and believe that person will just naturally take their best interests into consideration. This is not always case because most realtors, unless they specify, are actually seller agents. This means that their primary goal is to obtain best deal possible for seller. If you are looking to purchase a home and want to choose a realtor who will represent your best interest you should look for a buyer agent. If realtor does not specify, chances are they are a seller agent.