One overlooked pitfall of owning a home that – with your intervention – can cultivate clients for life

[ad_1] However first, final evening, a few of my MBA Accounting college students graciously volunteered with me to assist Atlanta householders attraction their property taxes via the Atlanta Beltline Property Tax Help (shout out to Marian Davis) in partnership with Atlanta Authorized Help (shout out to Stacy Reynolds).

Right here’s only one instance of what we noticed:

Briefly, in a single 12 months, this residence’s worth virtually doubled. That’s nice when you’re promoting the house or refinancing to tug out fairness, but it surely’s a nightmare once you all of a sudden should pay extra in property taxes, which, if you're not capable of pay, may imply you lose your property as a result of a tax foreclosures or tax deed sale. Yeesh.

And guess what? We seen many householders had lived of their houses for years and didn’t have a homestead exemption, which is obtainable in most states throughout the U.S. This exemption offers you an automated low cost for dwelling within the residence as an owner-occupant (in different phrases, when you’re not an investor, the state will provide you with a tax break). However right here’s the catch: You need to ask for it. You need to choose in. It’s not automated—which is a disgrace, however we’ll discuss lobbying for that one other day.

The following factor we seen (since that is all public document) was that many individuals had neighbors who not solely appealed their property taxes however gained the attraction—locking in a diminished price for a number of years. And clearly, these neighbors didn’t unfold the phrase. It’s higher late than by no means, however we noticed so many individuals who’d lived of their houses 5 to 10 years with out a homestead exemption and by no means knew they might file an attraction to at the least freeze their property tax price (so it doesn’t go up yearly). Yikes.

Now, when you’re right here in Georgia, right here’s some excellent news: For the primary time ever, even when you missed the homestead exemption deadline (usually round April 1, relying in your county), you may file for it proper now whereas submitting a property tax attraction—however all of that is due by August 1.

Sharing is caring, so be sure to move this alongside to any householders you understand, whether or not within the nice state of Georgia or not, in order that they'll at the least put together for subsequent 12 months’s deadline. Once more, we have been shocked to see how many individuals didn’t have a homestead exemption or had by no means filed an attraction to decrease—or freeze—their property taxes.

Lastly, since I'm sporting my professor hat, it is sensible that I've homework so that you can assist each your online business develop and to create model loyalty amongst your neighbors.

Homework for actual property professionals (taking a look at my Mortgage Brokers & Actual Property Brokers mates):

Homestead exemption: Remind your shoppers to use ASAP—it’s not automated!

Enchantment deadlines: In Georgia, August 1 is the cutoff this 12 months for appeals and, for the primary time, late homestead filings.

Neighborly obligation: Many owners miss out just because nobody informed them. Be the one who does even when they weren't your consumer! BONUS: As an actual property professional, it is a tried-and-true, old-school advertising tip that promotes goodwill and helps to construct your ebook of recent enterprise.