Why you should know about Homestead exemptions in Florida!
As 2018 winds to a close, there are some really interesting things to think about from a real estate perspective. For example, if you are currently involved in the buying process, it may be in your best interest to do everything you can to get the deal across the line before the turn of the new year.
The reason? Homestead exemptions.
If you own your home and maintain it as your primary residence by January 1st, you could save yourself a significant amount of money on tax exemptions. This is because property taxes are paid in arrears, which means missing your 2018 closing date by even a couple of days could mean losing out on 2019 tax deductions totaling some $600-$800, depending upon your municipality rates. Essentially, you may lose out on being able to protect up to $50,000 dollars of property value from local taxation.
The Challenge
As we have discussed in previous blogs, December home shopping (or selling) can be difficult because there are so many holidays that can slow down the process and delay closing dates. However, if you take a proactive approach (as a Realtor or a buyer!), you do still have time to put on the full court press.
Homebuyers
You may want to talk to your realtor about ways to speed up the closing process to get the deal over the line before the new year. Sometimes just setting a concrete goal with specific dates and timelines can help people accomplish tasks more quickly.
Realtors
You may want to make sure your client is aware of the potential savings involved in a deal in the next few weeks. If they are sure they want to close and the date is in January, they may want to try to expedite the process to take advantage of this situation.
Want to learn more?
After talking to your Realtor, you may want to contact your local property appraiser to ask any specific questions you might have about the process. For a more detailed (and technical!) explanation of the homestead exemption, you can check out this article that breaks down some of the key aspects of the law.
As usual, if you want to talk to one of our local experts, don’t hesitate to get in touch!