What to Expect with Property Taxes

As a current or prospective owner of Phoenix real estate, there are many important details you’ll want to know regarding your financial responsibilities. Property taxes are one of those details, and planning for them appropriately will help you stay financially healthy. Here’s what you should know about paying property taxes in our fine valley.

Payment Schedules

The most important thing you’ll need to know about your property taxes is when they are due. Maricopa County, which governs most of the valley, typically has two due dates per year. At least half of your total property taxes are due on each of these dates. Of course, you may pay them in full to get them out of the way, but otherwise your half-year taxes are due no later than October 1 and May 1. If your taxes are not paid in a timely manner, the county may place a lien on your property or even sell it to recover past-due tax debts so it’s important to stay current.

Escrowed Taxes

Many buyers of Phoenix real estate are required to pay monthly into a savings (escrow) account that is then used to pay property taxes and homeowner’s insurance. Your loan lender holds this fund and then disburses the payments according to their due dates. Some lenders will send the check directly to you to forward to the county, while others will pay the county directly for the property taxes you owe. Ask your lender in advance how they handle tax payments, so that you can be aware of your responsibilities.

Assessments

Owners of Phoenix real estate obviously hope for their property value to increase. This can help build equity in the property and ultimately provide a higher return on investment. While these are positive things, one drawback to increasing property value is potentially higher taxes. When purchasing a home, the previous year’s tax rate is used to calculate what you should owe in the future. However, it’s very common for the county to reevaluate home values on a periodic basis.

Typically, you’ll receive a postcard from the county prior to a reassessment. Once it’s been completed you will also have the opportunity to appeal if you feel that the assessed value is higher than the true market value. In the case of an increase notification, you’ll want to sock away the difference to either your escrow account or separate savings account to manage the shortage when the bill comes.

Property tax is an obligatory part of owning Phoenix real estate and one that you should seek to understand. Working with an educated and experienced realtor can ensure that you know your responsibilities and what your financial future may hold as it pertains to your home and land.  

New Construction Vs. Resale Homes

When looking for real estate to purchase, the choices may seem endless. One of the questions on your mind may be whether to purchase a resale property or a new construction property. As with most decisions in life, there are pros and cons for each type. Including the following factors in your decision-making process can help you make the right choice.

Condition

As most people would assume, a resale property has generally been lived in by other residents since it was built and therefore may have suffered some wear and tear. Many listed resale properties receive a makeover which often reduces or eliminates any evidence of its experiences. You may discover fabulous upgrades in a resale home that would cost you a fortune in a new construction real estate sale.

New construction is generally without wear and tear, though you should still be cautious of its condition. Not all builders use the highest quality materials or build homes that are solid and plumb.

In either resale or new construction sales, you should always opt for a professional home inspection before sealing the deal on your purchase. 

Upgrades

One of the nice facts about new construction is that you may have input to your home’s final appearance. Custom touches, preferred color schemes and design elements are often flexible when working with a builder or new construction seller. These elements may come with a hefty price tag for a new construction property, whereas you could change color schemes for fairly low cost with resale real estate. You may also be able to negotiate in upgrades with a seller of a resale property, especially for items like carpet.

Energy Efficiency

New construction usually wins the battle where energy efficiency is concerned. Builders now have the option of incredibly energy-efficient windows and doors, solar panel energy and other green-building options. Older resale homes may have depleted insulation or older windows that leach energy so the cost to upgrade these items should be included in your decision-making process.

The real estate market offers an infinite amount of options and only you can determine what you want in your next home. Working with an expert realtor will help optimize your search no matter what you desire!

Summer Housing Trends 2015

The real estate market in Phoenix is ever-changing and growing. This summer is no exception! Chris F. Campbell of RooPho Realty gives his predictions on hot housing for 2015. 

A few new trends have begun to emerge this year, which Chris expects to blossom this summer.  Chris states, “Move-in ready homes and condos in urban areas are popular this summer. Society has been changing.  More people live in cities than rural areas than ever in American history.  Incomes are greater in metro areas than in small towns for the same job.  In addition, young professionals, empty nesters and retirees are wanting more to do within walking distance or via public transportation.”

Another big movement in the real estate market in Phoenix is house flips. “There are some good Fix and Flip homes out there,” Chris says. This idea of acquiring an inexpensive home that needs some work can be a great investment if done correctly. Investors typically look for a structurally sound home as a start, improve them and resell them with a much higher price tag. The projects should be chosen strategically to return the highest profit for the time and cost invested, and work should also reflect the designs and styles of the surrounding neighborhood.

“Buying downtown and midtown continues to be popular in the Phoenix real estate market,” Chris informs. These areas boast great dining and entertainment plus healthy employment statistics. Commuting is a dream and there is great enjoyment to be had in these neighborhoods.

As far as trends go, Chris’ recommendation depends upon your short and long-term goals. “Following the trends is probably a better investment but there will always be plenty of people living in the suburbs with a pool in the backyard. Some groups, such as young families, aren’t moving into urban areas,” Chris observes. “Do what’s right for you and your family. If you are looking for a property to buy and move out of in a few years, following the trends is probably the better investment.” 

Real estate in Phoenix can be complex and challenging to navigate. No matter what real estate strategy you’d like to execute, RooPho Realty is an expert guiding hand. Contact us today to start your search!