Blog Layout

Navigating Property Taxes in Florida: What You Need to Know About Homestead and Portability

KerryAnn Rainey • February 23, 2023

Property Taxes in Florida: Understanding Homestead and Portability

As a homeowner in Florida, it's easy to get lost in the daily hustle and forget about the responsibilities that come with it. One of the most critical obligations is paying property taxes, but did you know that neglecting to protect your homestead exemption could cost you thousands of dollars?

Local governments, including counties, municipalities, and school districts, rely on property taxes as a crucial source of funding. Unfortunately, homeowners who fail to understand the significance of homestead and portability are often caught off guard and forced to pay more in taxes. In this article, we'll reveal how neglecting your homestead exemption could put you in financial jeopardy and show you how to protect your investment.

Homestead Exemption

The homestead exemption is a tax benefit available to Florida homeowners who use their property as their primary residence. It exempts up to $50,000 of the assessed value of the property from taxation, which can result in significant tax savings. We recently had one client who saw a $1500 increase in their annual taxes. This was a 227% increase compared to what the previous owner was paying. After applying for homestead, we are estimating savings of around $1000 a year. Over 30 years, the homestead exemption can really add up.

To qualify for the homestead exemption, you must meet certain eligibility requirements, such as owning the property as of January 1st of the tax year, using the property as your primary residence, and being a permanent resident of Florida. You must also apply for the exemption with the local property appraiser's office. As a realtor, I wish I could just do this for my clients. Unfortunately, new buyers have to do the paperwork themselves.

The homestead exemption has several benefits for homeowners. For one, it helps to reduce the amount of property taxes owed, as noted above. Additionally, the homestead exemption can protect homeowners from certain types of creditors, as the exemption provides a degree of protection against forced sale of a homestead property. Furthermore, the homestead exemption can provide some additional tax savings for seniors, as well as provide a stepping-stone to portability.

Portability

Portability is a provision in Florida law that allows homeowners to transfer a portion of their accumulated homestead exemption benefit from one property to another. Specifically, it will enable homeowners to transfer up to $500,000 of the Save Our Homes (SOH) benefit to a new property, which can help reduce the property taxes owed on the new property.

The SOH benefit is the difference between the market value of a home and its assessed value for tax purposes. Under Florida law, the assessed value of a homestead property can increase by no more than 3% per year, even if the market value of the property increases at a faster rate. This helps to protect homeowners from large property tax increases. However, if a homeowner sells their homestead property and purchases a new one, the SOH benefit is lost, and the new property will be assessed at its current market value, which can result in a higher tax bill.

SOH Benefit

Portability allows homeowners to transfer a portion of their SOH benefit to the new property, which can help reduce the property tax liability. It's important to note that there are certain requirements and limitations to portability, and the exact amount of the benefit that can be transferred will depend on a variety of factors, including the market value of the new property and the amount of the SOH benefit that was accumulated on the previous property.

As a homeowner in Florida, understanding property taxes is an important part of owning and maintaining your home. The homestead exemption and portability are two key provisions that can help you reduce your property tax liability and protect your home from certain types of creditors. If you have any questions about property taxes, including homestead and portability, contact your local property appraiser's office for more information.

If you're a homeowner in Florida and have questions about property taxes, or if you're thinking of buying or selling a home and want to know more about homestead and portability, contact Fuller House Real Estate at 727-470-9373 or go to our contact page.

Our experienced real estate professionals are here to help you navigate the complex world of property taxes and real estate transactions, and we're committed to providing our clients with top-notch service and personalized attention. Don't hesitate to reach out to us for all your real estate needs!

< Older Post Newer Post >

Mail

KerryAnn's Current Real Estate Discussions

Unlocking Success: 10 Key Questions Home Sellers Must Ask Before Listing

By KerryAnn Rainey • November 20, 2023

Selling your home is a significant undertaking, and while the prospect of a new chapter is exciting, it comes with its fair share of questions. Whether you're a seasoned seller or a first-timer, having the right information is crucial for a successful home-selling journey. Let's delve into the 10 key questions that home sellers often ask when preparing to sell their cherished abode. 1. What is My Home Worth? Unlocking the mystery of your home's value is the first step in the selling process. Reach out to a real estate agent for a Comparative Market Analysis (CMA) to get a clear picture of your home's market value. This will guide you in setting a competitive and realistic listing price. 2. How Can I Boost Curb Appeal? First impressions matter, especially in real estate. Ask about ways to enhance your home's curb appeal. Simple landscaping, exterior repairs, and a fresh coat of paint can make a world of difference in attracting potential buyers. 3. To Renovate or Not to Renovate? The renovation dilemma is real. Consult with professionals to determine which repairs or renovations are worth the investment. Strategic improvements can add value and make your home more appealing to prospective buyers. 4. What Documents Do I Need? Paperwork is a necessary evil. Compile essential documents, such as property records, warranties, and utility bills, to streamline the selling process. Being organized from the start sets the stage for a smoother transaction. 5. How Can I Stage My Home Effectively? Staging transforms a house into a home. Seek advice on presenting your home in the best light. Decluttering, rearranging furniture, and creating a warm atmosphere can make a lasting impression on potential buyers. 6. When is the Best Time to Sell? Timing is everything in real estate. Understand the market trends, seasonal fluctuations, and local factors that can influence the timing of your listing. Knowing when to make your move can significantly impact your selling success. 7. How Do I Navigate Negotiations and Offers? Negotiating is an art. Arm yourself with knowledge on how to handle negotiations and evaluate offers. A seasoned real estate professional can guide you through the process, ensuring you make informed decisions. 8. What Costs Should I Expect? Selling comes with a price. Inquire about the various costs associated with selling your home, from agent commissions to closing costs and potential repairs. Knowing the financial landscape prepares you for a seamless transaction. 9. How Can I Market My Home Effectively? Marketing is the key to visibility. Explore the best strategies for marketing your property, including online listings, open houses, and social media promotion. A well-thought-out marketing plan can attract the right buyers to your doorstep. 10. What Happens During the Closing Process? Closing is the finish line. Understand the ins and outs of the closing process, from the necessary paperwork to what to expect on the final day. Having a clear roadmap to the closing table ensures a smooth transition from seller to the next proud homeowner. Selling your home involves careful consideration and strategic planning. By asking the 10 key questions outlined in this blog post, you empower yourself to make informed decisions, setting the stage for a successful home-selling experience. Whether you're bidding farewell to your first home or parting ways with an investment property, the right knowledge is your best ally in this exciting endeavor. Ready to embark on your home-selling adventure? At Fuller House Real Estate, we're here to guide you every step of the way. Our experienced team is dedicated to making your selling journey seamless and successful. Contact us today to schedule a personalized consultation. Let's turn your home-selling dreams into a reality! Thank you for trusting Fuller House Real Estate with your home-selling journey. We look forward to assisting you in achieving your real estate goals. To contact Fuller House Real Estate, please call 727-470-9373 , or visit the website at FullerHouseRE.com .

Embracing Change with Grace: Downsizing Your Elderly Parent's Home

By KerryAnn Rainey • October 13, 2023

Navigating the Path to Downsizing for Elderly Parents in Real Estate Downsizing is a significant life transition, often necessitated by various factors, and one of the most common reasons for this transition is the aging process. When it's time to downsize your elderly parent, there are many considerations that come into play, especially in the context of the real estate market. Kindness and sincerity are the pillars of supporting your parent through this process, ensuring they have a comfortable and safe environment in their golden years. In this article, we will explore how to navigate the journey of downsizing for elderly parents, with a focus on real estate. Assessing Your Parent's Needs The first step in helping your elderly parent downsize is to assess their unique physical and cognitive abilities. Real estate choices should be aligned with their safety and accessibility requirements. Some key considerations include: Home Accessibility: Look for homes with a single level to eliminate the need for stairs, which can be a hazard for seniors. Wider doorways and open floor plans can also enhance mobility. Bathroom Safety: Features like grab bars in the bathroom and a walk-in shower can make daily routines easier and reduce the risk of accidents. Considering Preferences and Lifestyle The next consideration revolves around your parent's preferences and lifestyle choices. Every elderly individual is unique, and their living arrangements should reflect their desires. Some factors to think about include: Community: Does your parent wish to live in a senior-friendly community, or do they prefer a quieter neighborhood? Some seniors thrive in communities with social activities and support networks. Proximity to Family and Friends: Consider whether your parent would like to be closer to family and friends. Being near loved ones can offer vital emotional support. Special Needs: Assess if there are any specific needs your parent has, such as easy access to medical care or transportation options. Proximity to healthcare facilities can be crucial. Financial Considerations While downsizing can have several benefits, it's essential to factor in the financial aspect. Costs associated with moving, selling the old home, and acquiring a new one can add up. Don't forget the possibility of hiring professional help for decluttering and packing. Here's how to manage the financial side: Budget Planning: Work with your parent to create a budget that covers all expenses. Ensure they are financially comfortable with the chosen option. Maximizing the Sale: Selling the current home is a significant financial event. Consider investing in home staging or repairs to maximize its selling potential. Professional Assistance: If necessary, don't hesitate to hire professional services. They can streamline the process, making it more efficient and less stressful. Practical Tips for a Smooth Downsizing Experience Now, let's delve into some practical tips to ensure a smooth downsizing process for your elderly parent: Start Early: Early planning allows your parents time to adapt to the idea of moving and make well-considered decisions about what to keep and what to let go of. Sensitivity and Patience: Downsizing is an emotional process. Approach it with empathy, patience, and kindness. Understand that parting with their home and belongings can be difficult for your parent. Involvement in Decision-Making: Always involve your parent in the decision-making process. Their input should be valued and respected. It empowers them and helps them adjust to their new living arrangement. Professional Assistance: If the downsizing process becomes too overwhelming, don't hesitate to hire professionals who specialize in decluttering, packing, and moving. Downsizing for elderly parents in the real estate context is a journey that requires kindness, sensitivity, and sincere support. This transition offers an opportunity to declutter and simplify their lives, creating an environment better suited to their needs. By considering their unique requirements, financial circumstances, and emotional well-being, you can help them embrace this new chapter with grace and dignity. In the end, the goal is to create a safe and comfortable haven where your elderly parent can thrive in their golden years. Downsizing for elderly parents in the real estate context is a journey that requires kindness, sensitivity, and sincere support. This transition offers an opportunity to declutter and simplify their lives, creating an environment better suited to their needs. By considering their unique requirements, financial circumstances, and emotional well-being, you can help them embrace this new chapter with grace and dignity. When you need professional guidance and a caring hand to navigate the intricate path of downsizing, remember that KerryAnn at Fuller House Real Estate is honored to help families compassionately during such an important decision. Reach out today for expert assistance in making this transition as smooth and positive as possible. To contact Fuller House Real Estate, please call 727-470-9373 or visit their website at www.fullerhousere.com .