Florida Property-Tax Amendment - Questions and Answers

Homeowners' guide to propety-tax amendment:

Of the four parts in a property-tax amendment up for a Jan. 29 vote, portability has the potential to affect homeowners the most. Key questions about it:
• Q: What is portability?
• A: The ability to transfer to a new home accumulated property-tax savings tied to the Save Our Homes law. The taxable value of a homestead can rise no more than 3 percent a year -- even if the real market value of the home is higher. Over a period of years, the market value of the home may be higher than its taxable value. That's called the ''differential.'' Under the amendment, that amount can be transferred to a new home so you pay less tax.

• Q: How can I find out the differential for my home?
• A: On Miami-Dade property-tax statements, subtract ''taxable value'' from ''market value'' to get the differential. In Broward, subtract ''taxable value'' from ''property assessment value.'' In Monroe, subtract ''taxable value'' from ``just value.''

• Q: How much savings can I carry to another home?
• A: If you buy a more expensive home, you transfer all of your benefit up to $500,000. For example, if you sell a home with market value of $600,000 and taxable value of $300,000, your differential is $300,000. If you then buy a new home with market value of $700,000, your taxable value would drop by the differential, $300,000. So your taxable value would be $400,000 your first year in the new home.
If you buy a lower-priced home, you transfer a percentage that matches your current benefit, up to $500,000. So if market value of your current home is $600,000 and your taxable value is $300,000, your differential is $300,000, or 50 percent. If you sell it and buy a new home for $400,000, you may transfer $200,000 -- 50 percent of the new home's market value. Your taxable value would be $200,000 the first year.

• Q: How much will my taxes increase on my new home in the future?
• A: You will still be covered by Save Our Homes, which means taxable value will grow no more than 3 percent each year.

• Q: What if I've never owned a home in Florida?
• A: You're at a disadvantage. But once you own a home, you will accumulate Save Our Homes benefits and can transfer them to another Florida home.

• Q: Do I get the benefits of portability only if I sell after the amendment passes?
• A: No. If the proposal passes on Jan. 29, you can get the benefits if you sold your home anytime in 2007, as long as you get homestead exemption on your new home by Jan. 1, 2009.

• Q: If I sell my home, do I have to buy another main home right away to transfer my tax savings?
• A: No. You will have two years to transfer savings.
Source: Miami Herald, MARY ELLEN KLAS

HELPFUL LINKS:
Broward County Tax Appraisal Site
http://www.bcpa.net/Homepage.asp
Miami Dade County Tax Appraisal Site
http://www.miamidade.gov/pa/
Interactive Tax Calculator
http://www.miamifly.net/interactive/proptax/
Arnowitz Properties main site
http://www.arnowitzproperties.com/

Hilights of property-tax proposal
HOMESTEAD
• All homeowners would receive an additional homestead exemption of $25,000 for the value of their home above $50,000.
• The new exemption doesn't apply to schools taxes, so the exemption would average about $15,000 statewide.
• First-year impact: $892 million.

PORTABILITY
• Owners of homestead property would be able to transfer their Save Our Homes benefit (up to $500,000) to a new homestead within two years of moving.
• Homeowners who moved in 2007 may transfer their benefit if they apply for a new homestead Jan. 1, 2008, or Jan. 1, 2009.
• This applies to all taxes, including school taxes.
• First year impact: $302 million.
Source: Florida Senate

Bradley E. Arnowitz, P.A. & Associates
http://www.arnowtizproperties.com/
ClientCare@ArnowitzProperties.com
24/7 (305) 776.6113

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New York Times Article

I read an interesting article in the New York Times regarding the market in South Florida and how high end properties have suffered less than lower and mid priced properties and thought you might find it interesting reading.

http://www.nytimes.com/2007/10/27/business/27home.html?_r=1&em&ex=1193803200&en=86a4808c3d8b88d3&ei=5087%0A&oref=slogin

Bradley E. Arnowitz, P.A. & Associates
http://www.arnowitzproperties.com/
ClientCare@ArnowitzProperties.com
(305) 776-6113

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For more information, visit Arnowitz & Associates on the web at http://www.arnowitzproperties.com/ or contact the firm at Re/Max Beach Properties, 1355 Alton Road, Miami Beach, FL 33139 or Re/Max Beach Properties, 672 E. Hallandale Beach Blvd, Hallandale Beach, FL 33009, 305.776.6113. ClientCare@ArnowitzProperties.com

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Phone: 305-776-6113
Email: Brad@ArnowitzProperties.com
Website: http://www.arnowitzproperties.com/

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Short Sales - FREE Foreclosure Lists

Short Sales and Foreclosures Offer Some Opportunities For Buyers In Broward, Dade and Palm Beach Counties:

How does a homebuyer, find a seller?
Sign up for our FREE List of Distressed and Foreclosed Properties @ http://www.arnowitzproperties.com/foreclosures.asp
Bradley E. Arnowitz, P.A. & Associates will send you a list of properties that match your criteria.

Nationally major banks and other lending institutions have recently written off billions of dollars to reflect the lower value of homes that they have repossessed. With these homes now priced more realistically, lenders are anxious to unload these non-performing assets and, locally, real estate brokers are being enlisted to market and move these properties.

This presents an excellent opportunity for first-time buyers to purchase homes in the Miami Dade, Broward, and Palm Beach Counties at prices well below where they were two or three years ago. Local mortgage loan officers are targeting those families or individuals with recession-proof occupations such as teachers, nurses, firemen and law enforcement personnel. For those buyers with good credit scores, 30-year fixed mortgages are still available with interest rates under 7 percent with minimal or no down payment.

Not so lucky are other potential home buyers - particularly those with poor credit scores, high debt ratios, spotty employment histories, or lack of down payment funds, — who have been frozen out of the market by tightened lending standards as a result of the mortgage meltdown.

Presently a huge percent of the foreclosures have involved subprime mortgages that were given to unqualified buyers, such as the adjustable mortgage. This percentage may change, however, thousands of other homeowners are currently in default on their mortgages. In many cases, banks and other lending institutions are delaying foreclosure proceedings.

Surprisingly, the homeowner and the lending institution both have an interest in avoiding foreclosure which will adversely impact the homeowner's credit for years to come and, at the same time, add to the growing inventory of unsold homes in the lender's possession. With at least 5 percent of homeowners delinquent in their mortgages, a new opportunity has emerged known as a "short sale."

If a mortgage-qualified investor or home buyer can be found for a home whose mortgage is in default, a lending institution is often willing to decrease the amount of the mortgage by as much as 25 percent or more in order to reduce its inventory and avoid lengthy and costly foreclosure proceedings.

It is important to know that all parties to a "short sale" must be in full agreement. Sometimes there is a second mortgage on the home and, in the event of a foreclosure, the second mortgage would most likely be wiped out. Therefore, in a "short sale" the second mortgage holder must be amenable to accepting a token amount.

How does a homebuyer, find a seller?
Sign up for our FREE List of Distressed and Foreclosed Properties @ http://www.arnowitzproperties.com/foreclosures.asp
Bradley E. Arnowitz, P.A. & Associates will send you a list of properties that match your criteria.


There can be pitfalls to a "short sale." If the mortgage is substantially reduced, the IRS may consider the reduction as taxable income to the seller. However, if the seller is nearly insolvent, the IRS does not pursue the matter.

The benefit to a potential buyer in finding a homeowner, teetering on the verge of foreclosure, is that a price can often be negotiated with the lender that is substantially below market value. If the home has already been foreclosed, the lender usually wants to recapture the time and money spent in the foreclosure proceedings.

Usually a "short sale" buyer will be offered a new mortgage by the lender but it is always a good idea for the buyer to have an alternative lender lined up in order to make certain the terms are competitive.

While the buyer may have some sympathy for the homeowner who is losing a home, chances are that the buyer may actually be preserving the seller's credit from total destruction so that, in the future, the seller may re-enter the housing market a little wiser and better prepared financially.

On the opposite side of the spectrum are those who can purchase a property quicly, all cash. The opportunities to purchase at well below value in a short amount of time will always give you the advantage while purchasing a preforeclosure or foreclosed property.

Bradley E. Arnowitz, P.A. & Associates
(305) 776.6113
www.ArnowitzProperties.com
ClientCare@ArnowitzProperties.com

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A thought on Negotiating, Advance I say, Always...

Please reflect on this:

People will always try to take from you in negotiation what they could not get from you with direct confrontation. They will even use appeals to fairness and morality as a cover to advance their position. Do not be taken in: Negotiation is about maneuvering for power or placement, and you must always put yourself in the kind of strong position that makes it impossible for the other side to nibble away at you during your talks.

Before and during negotiations, you must keep advancing, creating relentless pressure and compelling the other side to settle on your terms. The more you take the more you can give back in meaningless concessions.

Bradley E. Arnowiz, P.A. & Associates has a reputation for being tough and relentless, yet kind and caring, unyielding and firm, yet savvy enough to know how and when to compromise during negotiations. Realtors and Developers, Buyers and Sellers can expect to negotiate in good faith, prior to even meeting us! Allow us the honor to represent you. Advance, I say, Always!

Reach us on the web @ http://www.arnowitzproperties.com/
ClientCare@ArnowitzProperties.com
(305) 776.6113

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Keeping Your Earnest Money Safe

When you make an offer on a house, it is accompanied by an earnest money check. Earnest money is intended to demonstrate that you are "in earnest" about purchasing the property.

The earnest money check is normally made out to the listing company. What happens to this check? The party holding the check acts as an escrow agent until you go into closing. At that time you will receive credit for the amount of your check against the down payment and closing costs.

Real estate brokers are required by law to keep escrow funds in a special account. These funds cannot be used to pay any other expenses associated with the sale. If you don't complete the transaction, the purchase contract determines the disposition of your earnest money funds. Be sure to review this part of your contract with the real estate agent. If you are in default on your agreement, the funds may go to the sellers, so be sure that you understand the deadlines in order to avoid breach of contract and forfeiture of your deposit. If you have any questions, be sure to ask us for advice.

Bradley E. Arnowitz, P.A. & Associates
ClientCare@ArnowitzProperties.com
(305) 776-6113

HONESTY * INTEGRITY * RESULTS