Are you about to buy a new home? Well, your home is certainly one of your biggest treasures and surely one of the biggest investments of your life. Many amateur homeowners are so emotionally carried away by the dream of having their own homes that they finally end up paying an unnecessary exorbitant rate. Make sure your emotions do not get to blindfold you when it comes to ensuring a smart negotiation on the final property deal. There are various strategies to mind while you are out on negotiation. Yes, you will have your broker with you to handle the negotiation affairs but it’s better that you too are ready with your homework.
1. Market study
Before you go out to argue on the selling price you must be careful about the present market scenario. The experts always advise to a thorough market research on similar type of properties so that you can have an average idea on their rates. If you can locate homes selling at significantly lower rates per sq.ft, then print out the information to utilize it during negotiation with the seller.
2. Don’t be too enthusiastic
This is one of the vital points to remember while you are negotiating for the final property deal. Even if you have got your dream home you should be reserved about your enthusiasm and keep it secret from the seller. If the seller somehow gets a clue about your enthusiasm then he can easily pose an exorbitant rate on the property, taking advantage of your emotions. So you should keep close guard on your motivation.
3. Understand seller’s motivation
You should try hard to understand the seller’s motivation. For example, if the seller is soon to move to a new place he will be in a hurry to sell off the property as early as possible. In that case he won’t waste much time on negotiation and might succumb to your offer as well. But then if the seller is not in a hurry to move out soon, you might have a hard time negotiating.
4. Estimate cost of repairs
This is another major tip to mind while you are looking for a smart negotiation on the property price. You would have to estimate cost of all necessary repair works on the property which you would need to meet after the acquisition. The aspiring buyer here can submit the estimate to the seller & request the sale to be contingent on completion of these repairs. In case, you want to get the improvement works done later, ask for a price deduction on the property. You must get a neutral thorough home inspection to find out all the needed improvement areas, including the hidden ones.
5. No insulting offer
Finally, it’s okay to bargain but never be too cheap with the offer. Many a times, over-smart amateur home buyers have lost out on some really potential homes given their negligence towards a really reasonable deal. The maxim here is to be reasonable with due respect to your budget.
Taxes are a hindrance to your developing wealth, be it any kind like property tax, sales tax, commission tax, etc. but they are also a citizen’s essential duty. So how to do your duty as a citizen well and not even hinder the development of your wealth? Here you will be enlightened with certain tips that you would love to use to reduce your property tax.
You should never settle for tax reductions just as the county assessor has instructed, instead challenge your bills to get your tax payments reduced all the more. You should also keep assessing the present value of your property, as it changes and you would be at a loss by paying more if the value has decreased. And when you are filing for an appeal, make sure to have all the details about your property, which would give you a strong foothold.
So go ahead and reduce your property tax before it is too late.
Do you wince each year at the prospect of paying your property taxes? Did you know that due to ignorance on your part your property will most probably be over-assessed? By doing a little bit of homework you have major chances of reducing your property tax.
- Re-examine your property appraisal. Even a slight error is bound to shoot up the tax that you must pay.
- Compare costs with other properties in your neighbourhood. Many sites provide this facility, if you find that similar properties have been assessed at lower costs then you could file the discrepancy to the assessor’s office.
- You could file for a tax property tax exemption. Veterans, physically challenged people and senior citizens are eligible, since these are not automatically adjusted in your assessment, you must file a request to be considered.
- If you are renovating, then verify that the renovations have been correctly assessed and aren’t overstated.
Paying your taxes is your duty as a citizen, but it doesn’t mean that you have to pay extra.
Buying a property is in plain words securing an asset for the future. However to be the owner of a property, you need to pay the government some tax. Often people buy a property anticipating lower taxes and then get disappointed by the amount they end up paying. Do not fall victim to such a miscalculation. Learn to determine your property tax yourself before taking the plunge. That way you can even assess whether you are being overcharged or not.
Your property tax basically has three main components – the property value, the city’s assessment ratio and the prevailing tax rate. Property value is what your property would sell for in an open market. Every city has claims a percentage of that property value. The percentage depends on which city the property is located in. This is the assessed value. The tax rate again varies from city to city and also according to the building type. Determining what your property tax is before buying a property should be very important.
Did you know that you have your own rights as a tenant? Some of these rights have to do with apartment late fees. There are some rules that regulate how and when apartment late fees are applicable or acceptable. One of the things you have to know about apartment late fees is that they have a limit. This limit is normally agreed on between the landlord and the tenant before anyone moves into the house.
Most renting regulations normally allow for a few days’ grace period before you can be asked to pay any late fees. Make sure that you check the late apartment regulations in your area to ensure that you will not be harassed when you do not pay your rent on time. After the grace period passes, your late apartment fee will be assessed on a daily basis.
Property tax appraisal is the practice of estimating or assessing the value of a property in terms of money. It is the very foundation on which property taxes are calculated.
This is because it is the tool used by the authorities in order to determine the value of the property and then in respect to that value, the amount of property tax to be levied.
Knowledge of property tax appraisal is an absolute necessity as it involves with determining the value of the land while keeping in mind the various factors.
Property tax appraisal is always performed by an expert who is generally known as the appraiser.
Different methods of appraising properties are used all over the world by the different governments with each method having its own pro and con.
Appraisal is also necessary because each and every property in the world is unique in its own way.
Tax liens refer to the right of the government to encumber property when taxes are not paid it is slightly different from tax levy. Well a person can also benefit through buying and selling “tax liens”. It is not a difficult job it just involves earning interest through financing the homeowner at an interest. Tax liens are not always bad since it makes a tax payer responsible .the following are the advantages of tax liens:-
The government is sure of getting tax or else it could encumber the property.
A person can earn interest by paying off tax lien of the house owner at a certain interest and if the house owner fails to pay the borrowed money then the person can have the whole property to himself.
There are tax lien certificates too. In case the government encumbers the property of a defaulter then since, we are holding the tax lien certificates we get the first priority in purchasing that property.
Doesn’t it seem odd when we say the real estate value is falling and the property taxes are decreasing? At this time should not the property tax be decreasing to increase purchase of real estates and let the real estate market come in equilibrium with demand? .But unfortunately my friends that is not the case.
Property taxes are calculated on consumer price index rather than state equalized value which may fluctuate according to market conditions.
State Equalized Values or SEV is equal to 50 percent of the market value of ones property. So even if the market value of properties is high or low the property tax can be higher.
When a person buys a property, the purchase price, exact half of it becomes the new State Equalized Values.
To the relief of property owners in 1994, Michigan voters approved a constitutional amendment known as Proposal A. Proposal A stated that to limit the increase in property taxes to either 5% or the annual change in the Consumer Price Index (CPI), whichever is less, until ownership of the property is transferred.