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U.S. Homeowners Property Tax Increase

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Last year, U.S. homeowners faced an average property tax bill exceeding $4,000, marking the highest increase in five years, according to data from Attom Data Solutions , a real estate data firm. Property taxes nationwide amounted to over $363 billion in 2023, reflecting a 6.9% rise, largely attributed to inflationary pressures on local government costs and public employee wages. States with the highest effective property tax rates included Illinois, New Jersey, Connecticut, New York, and Nebraska, with notable disparities in tax increases observed across different regions, such as a 31.5% increase in Charlotte, North Carolina, and a 15.2% rise in Atlanta. Property taxes are determined by the assessed value of the property and applying the tax rates for the different taxing authorities for that year.   Generally, homeowners are notified of the assessed value of the property for that year, many times, even before the tax rate is set. There is often a procedure for disput
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Use Ben's Balance Sheet to Decide

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There is a technique that has been attributed to Benjamin Franklin and used when faced with a decision.   As the lore goes, whenever Ben was faced with a decision, like you are now, he'd take a piece of paper, draw a line down the middle of it.   On the left side, he'd list all the reasons he should do something and on the right side, he'd list the reasons to avoid doing that thing. Would-be home buyers are faced with the decision of whether to buy in today's market with uncertainty about inflation, the presidential election, the economy, higher than recent mortgage rates, and increased home prices, just to mention a few. Some people have been put on the sidelines because they cannot qualify for a mortgage and others have sidelined themselves, even though they have the funds and resources, because of all the "noise" in the market.   Looking at the advantages of renting versus buying may bring clarity. Advantages of Renting: Financial Flexibili
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Is a written buyer's agreement necessary?

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Beginning August 17, 2024, many agents will be required to enter into a written agreement with a buyer before touring a home either in-person or through a live virtual tour and buyers should be familiar with what it entails. There have been buyer agreements for decades in the real estate industry and it was always suggested that the agent have a buyer acknowledge it in their first substantive meeting.   The practice of when it was signed was not scrutinized which is why some buyers may not be familiar with the practice.   The agreements benefit both parties specifying obligations and duties.   The advantages for the buyer include: Dedicated Representation: A buyer's agreement ensures that the agent is committed to representing the buyer's best interests throughout the entire home buying process. Clear Expectations: The agreement outlines the scope of services provided by the agent, including their duties and responsibilities, helping to establish clear expectati
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Tips to reduce your homeowner's insurance cost

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Home insurance rates have increased by almost 20% nationally between 2021 and 2023 and even more in some states like Arizona where rates have jumped 62% in some cases.   The appreciation that homeowners have enjoyed, especially in the past four years, has caused premiums to increase because the values are higher.   In addition, insurance is affected by inflation due to the increased cost of labor and building materials used to calculate the replacement cost of the dwelling. Natural disasters, especially in coastal areas, tornados, fires, and hail are just a few of the things that insurers have paid considerable claims and are driving the prices of premiums higher.   Some insurers are pulling out of high-risk areas which make it difficult for homeowners to not only find coverage but at reasonable prices. There are several things that homeowners can do to lower the cost of their policies. Increase Deductibles - Opt for a higher deductible to reduce premium costs, but ensu
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Finding Affordability in Lessons of the Past

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In the 1980s, home buyers faced significantly higher mortgage rates compared to today's market. Despite this challenge, many people successfully purchased homes and made them worthwhile investments. They employed a range of strategies to manage costs and ensure affordability. Here are the key tactics they used, explained in detail: To reduce the amount borrowed and thereby lower monthly payments, many buyers saved for larger down payments. By putting more money down upfront, they could decrease their loan-to-value ratio, often securing better interest rates and reducing private mortgage insurance (PMI) costs. Strict budgeting was essential. Buyers meticulously planned their finances, cutting unnecessary expenses and prioritizing savings. This disciplined approach enabled them to accumulate sufficient funds for down payments and to manage ongoing homeownership costs without financial strain. Purchasing smaller or starter homes was a common strategy. These properties
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Convenient but not accurate can cost you money

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Online estimates like Zillow, realtor.com, Redfin, & Homes.com are convenient, but typically lack accuracy and may have a significant margin of error.   They are constructed using a computer-generated algorithm that utilizes historical public sales data and trends called an Automated Value Model, AVM. National AVMs derive values from automated computer modeling of public records and may not reflect the true value of a home due to the nuances of local markets.   An experienced agent, familiar with home sales in the area, takes several steps to arrive at a more accurate fair market value. Real estate agents provide invaluable expertise by leveraging their deep understanding of local market conditions. This includes insights into neighborhood trends, recent sales data, and current inventory levels. By tapping into this knowledge, agents can accurately assess the fair market value of a home. They conduct thorough property inspections, meticulously noting its condition, un
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Benefits of Checking your Credit Regularly

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You are encouraged by the Federal Trade Commission to be sure the information on your credit reports is accurate, complete, and up to date at least once a year.   It is an important part of your financial life that can determine whether you get credit, the terms of the credit and how much it will cost. In addition to borrowing money, good credit could affect premiums on insurance, employers' hiring decisions, ability to rent a home. Checking your credit history and credit scores: Helps you better understand your current credit position. Makes you aware of what lenders may see. Protects you from inaccurate or incomplete information. Recognize identity theft. Free annual credit reports can be ordered from Equifax, Experian, and Transunion through their centralized website - AnnualCreditReport.com , toll-free phone number ... 877-322-8228, and mailing address ... Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. These are the only ways to
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