| One of the biggest home buying factors that | | | | nice home from a great home! Also, you can |
| Temecula-Murrieta CA Real Estate buyers miss is | | | | negotiate still and maybe split closing costs with the |
| property taxes. Many people don't realize that most | | | | seller, saving several thousand dollars up front. Lastly, |
| new homes in Temecula, Murrieta, Menifee and | | | | your monthly payment is paying down over $100 |
| Wildomar California have special assessments built | | | | more towards your debt versus additional property |
| into property taxes. A few years ago, new home | | | | taxes. |
| builders started to pass on certain fees in the form | | | | When you are considering a new home purchase |
| of special assessments for road bonds, school bonds, | | | | with a builder in Temecula, Murrieta, Menifee, or |
| etc. Most used to pay this as part of doing business | | | | Wildomar please get a real estate professional |
| but when the real estate market was booming, the | | | | involved before you even walk in the door. You |
| just passed it right on. Rates of 1.7%, 1.9%, and | | | | won't lose any money but cutting yourself off from |
| even 2.2% are pretty common. | | | | representation but you are more likely to gain |
| How can this impact buyer decision making? | | | | financially by working a better deal or finding a much |
| Let’s take a look: Buyers: let's say you are | | | | better alternative. Good agents know the local |
| buying a new home in Murrieta CA for $310,000 with | | | | builders and are aware of the best values which may |
| a 20% ($62,000) down payment, a tax rate of 1.9%, | | | | offer increased buyer incentives as well. |
| and an association fee of $50 per month. Your 80% | | | | If a builder is trying to avoid an agent being involved, |
| loan of $248,000 at a 6% interest rate would be | | | | then there is often something wrong. In fact, most |
| $1,486.89 per month. Your new property taxes of | | | | builders are paying extra for agents because they |
| 1.9% generate an annual tax bill of $5890, or $490.83 | | | | are having a hard time finding qualified buyers and |
| per month. The total payment for your new house in | | | | also moving inventory with such high tax rates. There |
| Murrieta is $1486.89 + $490.83 + $50 = $2,027.72. | | | | are some great deals out there with many builders |
| That extra money also doesn't include new home | | | | that your agent can guide you to. They can also |
| expenses of putting in a backyard (drains, concrete, | | | | provide you a realistic comparison of other |
| sprinklers and lawn), window coverings, interior paint, | | | | opportunities so you get the best long-term value |
| patio cover, etc. | | | | and satisfaction from your new home purchase. |
| Now let’s consider a resale home in Temecula or | | | | Just imagine trying to sell a high tax rate house now |
| Murrieta for $330,000. The home is 2 years old with | | | | that he market is much slower. Buyers are learning |
| a great backyard and patio cover and with a 1.38% | | | | and those houses are losing thousands in list price to |
| tax rate plus the same $50 association fee. Your | | | | account for such high tax rates now. |
| 20% down payment would be $66,000, making your | | | | As you can see, a moment of consideration can |
| new loan $264,000 at 6%, a monthly payment of | | | | mean quite a bit when discussing property taxes for |
| $1582.81. Your taxes would now be $4554 annually, | | | | Temecula, Murrieta, Menifee, & Wildomar Real Estate. |
| or $379.50 per month. So your total monthly | | | | This is especially true for new homes in southern CA |
| payment is $1582.81 + $379.50 + $50 = $2,012.31, or | | | | which often have property taxes pegged at 1.9%. |
| $15.41 less a month. | | | | There are certain neighborhoods in all of these areas |
| In this example, you get $20,000 more home with a | | | | that have very low property taxes compared to |
| backyard, window coverings, and patio cover already | | | | others. That is where a good representation by an |
| put in. You may also get many other benefits such | | | | agent can really help you with getting a better house |
| as a bigger home, better lot or preferred community. | | | | and a much better long term investment. |
| Often it is only $20,000-$30,000 that separates a | | | | |