Atlanta Condos For Sale

It’s Tax Season ..Use Your Refund to Jump Start Your Down Payment Savings!

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It's Tax Season Jump Start Your SavingsAccording to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

It’s Tax Season Jump Start Your Down Payment

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

It's Tax Season

(Georgia’s average is $2,767!)

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, andFannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loansallowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

It's Tax Time Jump Start Your Down Payment Savings

The darker the blue, the closer your tax refund gets you to homeownership! For those in Alabama looking to purchase their first homes, their tax refund could potentially get them 69% closer to that dream! Georgia…you are half-way there!!! 

Bottom Line – – It’s Tax Season Jump Start Your Down Payment

Saving for a down payment can seem like a daunting task. But the more you know about what’s required, the more prepared you can be to make the best decision for you and your family! This tax season, your refund could be your key to homeownership!

You can learn more about other steps you need to take in buying a home or condo with our Atlanta Real Estate Buyers Guide. 

Have other questions about down payments and buying your home?  Contact us!

The Georgia Real Estate Contract for 2018

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Georgia Real Estate ContractThe process to purchase a home or condominium in the Metro Atlanta area has remained much the same over the years. (The process can be much different if you are buying property on Lake Sinclair, or if you are buying in Savannah, so we will focus on the Atlanta area, where we work!) But it helps to know about the Georgia Real Estate Contract. 

Some changes have come from the lending side, certainly, and those changes do affect most all buyers. But over the years, the Georgia Association of REALTORS (GAR) has made changes to the Purchase and Sale Agreement and other exhibits we use to buy real estate. At one point, the contract had areas where you had blanks to fill in on each page, and it made it difficult or both they Buyer and the Seller to really understand the terms of the offer. Fast forward to 2018, where the contract has been designed to have the key elements of the offer on Page One, and the supporting paragraphs for each item on Page One on the following pages. While those “following pages” get into the contract details, the key points such as the Property Description, Purchase Price, Closing Costs, Earnest Money and Due Diligence are all located on that first page. 

The agreement is written such that it is pretty fair in representing BOTH parties in the real estate process. It can become a “one-sided” document if special stipulations are added, or if any of the Page One items are slanted towards one side or the other. An example would be a long Due Diligence Period (say 15 days or more). During the Due Diligence Period, the Buyer may terminate the agreement or any reason, or no reason at all. This puts the Seller at a disadvantage by having their home/condo off the market with this lengthy time where the Buyer can walk away. 

As part of our Buyer Consultation, we provide you a copy of the Purchase and Sale Agreement along with the most likely Exhibits or Amendments you would use during your purchase. This helps our Buyers get to know the documents and ask any questions prior to us being in the middle of making an offer. 

If you are relocating to the Atlanta area, this gives you an opportunity to learn about the process (at least the forms used) in purchasing a home here, versus what it may have been in the city or state where you are moving from. 

You can find our 2018 Contract Package HERE. 

We are here to help our Buyers and Sellers understand all the terms of the agreement, as well as answer questions and make sure you are being represented. 

Your 2017 Fulton County Tax Bill

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Your 2017 Fulton County Tax BillBy now, your early Christmas present has arrived….Your 2017 Fulton County Tax Bill!

Along with the tax bill came some information about the 2017 tax rate. I’m not going to dive into all the numbers and millage rates….just some of the other information that was there. This can be useful to you if you are a new home owner, or perhaps looking to relocate to Atlanta. This will help you learn about the tax expense and benefit of owning a home (subject to any current tax plan under consideration by Congress)

2017 Tax Rate

Under Georgia Law, the Board of Tax Assessors determines the ‘Fair Market Value’ of your property, then ‘assesses’ it at 40% for tax purposes. Each year, Fulton County Government, the school boards, and each municipality set their respective budgets and millage rates. The following charts provide information concerning the financing of these services, including credits for sales tax. The Tax Bill was designed to serve the billing needs for both the Unincorporated area and Incorporated Cities within Fulton County. Your bill may also may include a rate for a Community Improvement District. 

You’ll find the aforementioned charts at the bottom of this post! 

Basic Homestead Exemption 

To qualify for basic Homestead Exemption you must own and occupy the property as your legal residence as of January 1 of the current tax year. So if you purchased in 2017, you will BE the owner as of January 1, 2018 and can file for the Exemption on your 2018 tax bill. You must file for this exemption by April 1, 2018 to receive it for the 2018 Tax Year. You can file your Homestead Exemption at any time, but, you must file by April 1.

Once you receive the Exemption, it is automatically renewed each year as long as you continuously occupy the home under the same ownership. 

Property Tax Returns

If you feel your property value is not reflective of fair market value, you should file a Property Tax Return requesting a change in the assessment between January 1 and April 1. If your Return is not accepted, you will receive your assessment notice, and then you have 45 days to file a formal appeal.  (See Below)

Payment of Taxes on Property Under Appeal (Don’t Pay, Don’t Stay….sort of)

When you signed your mortgage paperwork at closing (unless you paid cash) you heard me mention the phrase “If you don’t pay, you don’t stay” as it relates to your lender being able to foreclose on your home if you don’t make your payments. In this case, if you file an appeal, your taxes will still be paid by your lender out of your escrow account. If you are successful in your appeal, and your tax bill is reduced, you would see a credit (or refund) back to you from your lender when they review your escrow account. 

But, if you did pay cash, you still have to pay the tax bill you received to avoid interest, penalty, and/or foreclosure. 

Assessment Appeals

The Board of Tax Assessors is required to issue a notice of assessment for taxable tangible real and personal property. Once you receive this notice, you have 45 days to appeal said assessment. You can appeal based on taxability, value, uniformity, and/or the denial of an exemption.  When you make this appeal, it must be written and you must declare your chosen method of appeal…..

Three Methods of Appeal

Board of Equalization:  The appeal is filed by the property owners and reviewed by the Board of Assessors. The Board may change assessment and sena new notice. You may appeal THIS assessment in the amended notice within 30 days. The second appeal made by the property owner or any initial appeal which is not amended by the Board of Assessors is automatically forwarded to the Board of Equalization. A hearing is then scheduled and the Board renders its decision. A further appeal would be to Superior Court. 

Hearing Officer: The taxpayer may appeal to a Hearing Officer, who is a certified appraiser, when the issue of the appeal is the value of non-homestead real property, but only when the value is equal to or greater than $1M. Not satisfied here….Superior Court. 

Arbitration: An Arbitration appeal is filed with the Board of Assessors who must notify the taxpayer of the receipt of said appeal within 45 days. The taxpayer must submit a certified appraisal of the subject property. It may be accepted…or rejected. Rejected….the Board of Assessors must certify the appeal to the County Clerk of Superior Court for arbitration. Arbitration is authorized by the judge and a hearing is scheduled within 30 days. 

The arbitrator will issue a decision at the conclusion of the hearing, which is final and which may not be appealed further. 

(Now you know why you see arbitration in many real estate contracts (say a new home builder) as you can’t drag out an issue with multiple appeals or a law suit.)

If you have more questions about your tax bill, I am a real estate broker, not an accountant and I can’t speak for the Tax Assessor. I can help you get competitive market information to assist you in your appeal. But you can contact the Tax Assessors Office at (404) 613-6100 or online at FultonCountyTaxes.org

The Millennial’s Guide to Buying a Home

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I bought my first home when I was 32 years old. The term “millennial” didn’t exist back then. And nothing like The Millennial’s Guide to Buying a Home existed either. Let me be honest….”www” was not around either! So buying a home was a much different process than it is today. 

But if you are buying your FIRST home, then it’s a NEW process for you, and there can be lots and lots of questions! Thankfully, with the help of “www” it is much easier to get or find information online about the home buying process. I mean, we even created the Intown Atlanta Real Estate Buyer’s Guide as a great resource! 

But for the Millennial generation, many things in life are different. Starting with…how many of you there are! Like a whole 83.1 Million of you!!!! Then there is the often used phrase of “failed to launch” as many of you have delayed moving our of your family’s home…or maybe even moved BACK there after college because of employment or student debt issues. Experts have looked at your generation and wondered, “Do they even WANT to own a home?”  Well in 2016, the buyers in the age group of 25-34 years accounted from some 56 percent of first time home buyers…so I’d say you do! 

Now, I understand that Young Millennials (aged 17-25) are different than Older Millennials in the age group of 26-36. Like I mentioned, I was 32 when I bought MY first house. (Should I tell you I got transferred just 3 months AFTER I bought it? Nah…save that for another time! Like when we meet in person!)

So, what might be holding YOU back from making that first home purchase? 

The Top 6 Reasons young Renters Delay Buying

Any of these sound or feel familiar to you?

Millennial Home Buyers Guide

 

Don’t Get Caught in the Rental Trap

As you will see in our Full Report, The Millennials’ Guide to Home Ownership, rents have been rising consistently over the past 20 years or more! In homeownership, you can protect yourself from rising rents, by locking in your housing costs for the life of your mortgage! (Provided you do not have an adjustable-rate mortgage….and I’d highly advise against this!) Each month, your housing payments go towards owning your own home instead of renting it, and paying someone else’s mortgage. 

Now, I completely understand that buying is not always the right option for you. I’m happy to discuss your plans and what you see in your future…and maybe now is the time to buy….and maybe it is not. 

You can request your FREE COPY of our Millennials’ Guide to Home Ownership below! We look forward to helping you and if you have any questions, we are always available at 770.713.1505 or email me HERE

Free Home Buying Guide for Millennials

What a Atlanta GA Home Buyer Needs To Know

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Buying a home or condominium in Atlanta GA is not something you should do without knowledge and research. With today’s technology, you can do much of that on your own. But…..BUYER BEWARE!!! There is a lot of information out there, and how do you know what’s right, or maybe wrong? You could even think that when reading this post! 

What a Atlanta GA Home Buyer Needs To Know

Atlanta Real Estate MarketWhile you can do this “self-research” I’d strongly suggest you find a real estate agent early in your process. I often start “working” with potential buyers months before they actually make a home purchase. I help them in their research about the home buying process, including meeting with a lender, identifying potential neighborhoods or condominium buildings. 

Here are just a few things or tips to keep in mind as you start the home buying process!

  1. In most cases, a home is the largest asset an individual will have, and is considered one of the safest investments.
  2. Property taxes and qualified home loan interest are deductible on an individual’s federal income tax return.
  3. A homeowner can exclude up to $500,000 of capital gains if married and filing jointly, or up to $250,000 if single or married and filing separately. The home must have been the taxpayer’s principal residence for the previous two years. **
  4. A portion of your monthly mortgage payment is applied to the principal…consider this a monthly investment!
  5. You can live in and enjoy your home as an investment..you can’t do that with a mutual fund!
  6. I can show you ANY home listed you find, whether with another real estate company. Even new home construction that you may see when you drive by a new community. Remember, in each of these cases, the SELLER has someone representing them…and you should have someone representing YOU!
  7. Having been pre-approved with a lender will help you know how much house you can purchase and also help in negotiations with a Seller. Having the Seller know you have your mortgage process underway is a great tool in a demanding Seller’s Market.
  8. You have a right to conduct a home/condo inspection as part of your Purchase and Sale Agreement. This gives you the ability to negotiate repairs or compensation once you know all the facts about the property. (In condominiums, this can also be a time for you to review condo docs and budgets to know more about the building)
  9. A Home Protection Plan can offer you “piece of mind” coverage for select items like appliances, central heat/air and water heaters. If the Seller does not provide this during the negotiation process, you can purchase this coverage on your own. (Of course we can help you with various sources!)
  10. In a “Seller’s Market” don’t be looking for “the deal.” Remember, that Seller has an agent working for them, and hopefully they have priced the home accordingly. (Not always the case!) Focus on finding the right home, within your budget, and then let your real estate agent help negotiate the best terms and price. 

Whether you are ready to buy a home in the next 30 days, or the next 3 months, we are here to help you through the process, from beginning to your Celebration Day when you get the keys to your new home! And we will be here long after to answer any questions, or help your family or friends when they are ready to Buy or Sell! 

Check out our Intown Atlanta Buyer’s Guide for more information! And you can always contact me via email at Thom@MyMidtownMojo.com….by phone or text at 770.713.1505 or with the contact form below. Let’s set a time to meet and I can help YOU with What a Atlanta GA Home Buyer Needs to Know! 

Atlanta Georgia Real Estate

Thom Abbott, Associate Broker

Thomas Ramon Realty @ Palmer House Properties

2911 Piedmont Road, Suite B

Atlanta, GA 30305

Direct: 770.713.1505

Office: 404.876.4901

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Is Your Tax Return the Ticket to a New Home?

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Well, tax day has come and gone! April 15th is but a miserable memory as you completed your Federal (and maybe a State) tax return. If you had to pay it was pretty depressing…I know! But, if you have a refund headed your way, stop before you plan that vacation or trade in that 2-year old car for a new one! 

Is Your Tax Return the Ticket to a New Home?

Save Your Tax Return to Buy a New HomeGo Banking Rates recently surveyed American’s and asked them what they planned to DO with their refund?

  • 41% — Save It!
  • 38% –Pay off Debt
  • 11% — Go on a Vacation
  •  5% — Major Purchase (Car, home)
  •  5% — Splurge on some other purchase

But wait? Save it yes…but it might just be the push you need for the down payment you have been saving for!

Depending on the size of your refund, the type of home you want to buy, and where you live, a good tax refund just might be the down payment you NEED!

If you are in that 41% that is saving it….maybe you are just not ready to purchase, or want to have a bigger nest egg to rely on. I totally understand that. But you are headed in the right direction, and I’m here to help you when it’s time to begin the search!

If you think about it…in 2016 the average down payment for first-time home buyers was 6%, that tax refund might be a big start on what you need to get into that new home or condo you have been dreaming about! 

What’s YOUR tax return plan? 

Is Your Tax Return the Ticket to a New Home?

Thom Abbott

Associate Broker, REALTOR(R)
905 Juniper Street, NE Suite 110
Atlanta, Georgia 30309
770.713.1505 Direct
404.876.4901 Office

 
 
 
 
 
 
 
 
 
 

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