Fort Worth Real Estate Online

head_left_image

How the Homestead Exemption Can Get You More Sales !

As we move towards the end of the year... there is a Year End Bonus For Buyers out there to be had, and there's less than four months left in the year to take advantage of it.

Texas as a state is one that very much encourages Individual Home Ownership.  People who own their homes are more likely to take part in local area activities.  They are more likely to vote, and more likely to run for offices like school boards, city council positions, mayors of their city, and even state-wide positions.  This is something that is Good For Texas, and it's something that's Good For You.

The Homestead Exemption is something that many people who are renting homes or apartments may not be aware of.  The net effect of the Homestead Exemption is sort of a "discount" on a property owner's real estate taxes... but it's only for a person's "homestead"... which is the home they own, and that they are living in.

A general explanation of how it works is as follows:  Certain entities that "tax" an owners home real estate dwelling "exempt" a portion of the home's value from property taxes.  For example, if that taxing entity is a local ISD or Independent School District, it may "exempt" a portion of the value of that home from being taxed.  If that home is worth $140,000, and the portion of its value exempted is $20,000... it's like getting a 14% tax discount on that portion of a homeowner's yearly tax bill due the local ISD.

Sometimes the amount may be small, sometimes it may be larger, but nonetheless, it is a money-saving feature of home ownership that can very easily be taken advantage of.  The only "catch" is, that in Texas, a homeowner will only qualify if they actually OWN the property as of January First of the taxable year in question.  That means... if a buyer closes on their home this year on December 28, 2007... they are "in title"... or they own that property as of January 1, 2008, and are eligible for a tax break for the ENTIRE year of 2008.  IF you miss it by even a day, and perhaps close on your home on January 2, 2008, you are not eligible for the Homestead Exemption until January 1, 2009.

So... if you are sitting on the fence, wondering if buying a home in the next few months is a good idea, here is just one more reason why it is to your advantage to own your own home.

Comment balloon 13 commentsKaren Anne Stone • September 05 2007 12:16PM

Comments

I've never heard anyone present the homestead exemption as a reason to buy prior to January 1st. Interesting take on it!
Posted by Ken Stampe, iBrandPlan (iBrandPlan.com - Grow your e-Profile & Brand) almost 11 years ago
Ken:  In the past I can remember several times when buyers who closed during the early months of the year were quite upset with themselves when they realized that they missed out on that tax advantages just because they bought and closed a few weeks too late.   Karen Anne
Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 11 years ago
Karen Anne - These are those great little bits of wisdom which save our clients money!
Posted by Paula Henry, Realtor - Indianapolis Real Estate - 317-605-4174 (Home to Indy Team @ HomeSmart Realty Group) almost 11 years ago
Paula:  Thanks for taking the time to read my post, and comment on it.  Since I have only been with Active Rain for sixteen days now, I haven't figured out how to do all the cute stuff everyone else does on THEIR posts yet, so all I can do is simply write about things I know and use all the time.  I figure that if I share what I know with people, that some of them will probably share their ideas with me.  That way... everybody wins !
Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 11 years ago
This is indeed a great strategy, you are really thinking here, I can see how this could help, great posting, to help others in the industry there in TX. Lance
Posted by Lance Winslow (The Car Wash Guy) over 10 years ago

Gee Lance:  Perhaps I could start my own think tank? <ducking>  Ya see, there are some worthwhile posts I have written.  Oh ye of little faith.  Take care...

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 10 years ago
Very interesting information. I appreciate the information regarding this.
Posted by Matthew Zgonc, Realtor, CFS, CVS (Aksland Real Estate) over 10 years ago
Really "unique" post, thanks for the information!
Posted by Richard Sweum (1st Security Bank) over 10 years ago

Hi Matthew:  Thanks so much for going back and reading one of my older posts.  There really is a lot of good information here, and if used correctly, it can help you get more sales.  Thanks for your kind words.  Take care...

By the way... I have just made a brand new post using the Homestead Exemption in a different way.  Please take a peek.  Thank you.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 10 years ago

Hi Rich:  I am glad you found my Homestead Exemption post informative.  Thanks for visiting, and thanks for your kind words.  Take care...

By the way... I have just made a brand new post using the Homestead Exemption in a different way.  Please take a peek.  Thank you.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 10 years ago
very interesting post. Good explaination of the Homestead Exemption savings. We have that here in Florida also.
Posted by Broker Nick, Broker Nick Relocation Broker Service (South Florida Real Estate & Development, Inc.) over 10 years ago
Hi Nicholas:  The Homestead Exemption is available in many states.  Many homeowners take advantage of it, but some are still not aware of it... even years after taking title.  A Realtor with a working knowledge of the Homestead Exemption can use it to both her and her buyer's advantage.  Thanks so much for your kind comments.  Take care...
Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 10 years ago

Speaking of home.... I will be so happy when you are back home and blogging with us in the rain!!

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTORĀ® (Berkshire Hathaway Home Services - Anderson Properties) almost 5 years ago

Participate