South Florida property values have skyrocketed over the past year and this is now also evident in property tax bills received last month. While many believed that the pandemic would slow down the real estate market, it has only accelerated it instead. In Broward County, home values rose 4.3% from last year. Meanwhile, Palm Beach County posted a 5+% increase in home values. With property tax bills arriving at homes last month, many homeowners are seeing these increases in property taxes firsthand.
Tips for property taxes
- Pay early and save money: Once you receive your property tax bill, you will notice that it contains a schedule for payments. The earlier you pay your bill, the more money you can save. In fact, you should see a 4% savings if you file by November, 3% in December, 2% in January and 1% in February. There are various ways to pay your bill, however be aware that paying with a credit card will likely result in an extra fee.
- Educate yourself before a home purchase: It is quite common for a new homeowner to purchase a property expecting to pay what the previous owner was paying for property taxes. Unfortunately, this is not the case since the basis for property taxes will reset to market value upon the change in ownership. It is highly recommended that home buyers research the county property appraiser’s website prior to a purchase. On this site, there should be a property tax estimator that may provide more clarity and set reasonable expectations.
- File for the Homestead Exemption (in FL): If you are purchasing a new primary residence, you will want to be sure to file for the Homestead Exemption. A feature of the Homestead Exemption is the “Save Our Homes” component. Save our Homes is a Florida law that caps the annual increase that a homesteaded property can rise in value to either 3% or the change in the National Consumer Price Index, whichever is less. This provision is the reason why it is possible for a neighbor that has lived in their home for many years to be paying considerably less in property taxes than someone just moving into the neighborhood now.
Summary
Looking forward to 2022, it is expected that we should yet again see an increase in property taxes. With a continual rising demand for South Florida homes, it is largely expected that prices will still rise. The migration trends to The Sunshine State from states such as New York, New Jersey, and even California are expected to continue. Many of these buyers are fleeing more expensive markets in states that also have a state income tax. Therefore, moving to Florida and paying no state income tax is an easy decision. Are you considering a relocation to Florida? We can help!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
