Singing Realty

For Buyers

Wondering how it all happens and what to expect? Here goes:

Making the offer:

Once you find the “right one” with SingingRealty.com, you are ready to make an offer. Once you have reveiwed the comparable sales with SingingRealty.com , the offer is written.
You will need your checkbook because:

The “earnest money check” is usually $1,000 unless purchase price exceeds $150,000, then it is generally 1% of the amount offered for the property (Earnest Money: A deposit made of a portion of the purchase price by the buyer to demonstrate his or her serious intent to purchase the property, usually accompanied by an agreement outlining the terms and conditions of the sale)

This is the check that is written to the Title Company to be held in escrow. (Escorw: A deed, contract, or something of value deposited with a disinterested third party, to be delivered upon the performance of certain conditions by the parties involved; e.g., an attorney or escrow agent taking custody of funds and documents upon the closing of a sale of real estate)<

The Title Company will cash the earnest money check right away. If the buyer does not breach the contract (Breach: Failure to follow through on a contractual promise or legal obligation) the earnest money is credited in full at closing.

  1. The “Option Fee” written to the sellers of the property (Option: The agreement to keep an offer to purchase or lease open for a specific period of time. Generally $100.00 This fee may be more depending on the price of the property.

The fee is paid to give you, the buyer, the unrestricted right to terminate. If the contract closes as planned, the buyer is credited in full for the Option Fee at closing. During the stated period of time, normally 7, 10 or 14 days, the buyer has the opportunity to check out the property by getting 2 Professional inspections done---

  1. Home Inspection in which an inspector of your choice will check out 1. Structural, 2. Electrical, 3. Heating, Venilation and Air Conditioning systems (HVAC), 4. Plumbing, 5. Appliances, and 6. Optional systems. The Cost of an Inspection ranges from $250.00 to $400.00 or more depending on several variables including size, age, and type of foundation of property.
  2. Wood Destroying Insect Inspection sometimes calles a WDI or TermitePrices start at about $90.00 plus tax

When it is time to get those inspections scheduled. There are good, competent inspectors in the area. Check out SingingRealty.com’s client favorites on the “Service Providers” page.

It is a good idea and Strongly Recommended that the buyer is present at least toward the end of the inspections. Also, the inspectors do not bill for their services and expect payment at the time the service is rendered.

Back to the offer:

When terms are agreed upon and all parties have signed and have been notified that all parties have signed, the contract is executed. The “Option Period” begins the next full day. So, here’s an example: Say, the contract is executed on January 1st and the Option Period is 10 Days, that means that it will begin January 2nd and expire at midnight on January 11th. During the Option Period, the buyer has the unrestricted right to terminate without forfeiting his/her/their Earnest Money.

Once the Option period is over, there is more to take care of before closing.

Following the option period, it is a good idea to go ahead and speak with the utility companies to “transfer” the utitlties into your name effective your scheduled closing date. We can always change the date if necessary, but it really is helpful (and less costly) to avoid any interruption in service. The numbers for the utility companies/providers are available on my website for your convenience where ever your move in Walker, Montgomery, Trinity, Polk or San Jacinto Counties

Also,

Here is some helpful information for the “down the home stretch” to your Closing Date!

Professional Appraisals

Before your mortgage application is approved, the lender will order a professional appraisal of the home to make sure that the agreed-upon selling price is justifiable based on the current market value of the property.

It is more complicated to arrive at the appraised value if your home is located in a rural area or a diverse neighborhood.

The appraised value will usually be very close to the sale price. If the appraisal comes in lower, the real estate agent may be able to provide the appraisers with additional information on recent sales which will result in increased value.

Also, Let your insurance company know ahead of time that you are buying a home . The most important thing is to start the process well in advance in order to avoid any last-minute complications.

*****$$$ Summary:

2 checks attached with offer

  1. $1000/Earnest money written to the Title Company (usually $1000.00 or 1% of offered price—whichever is greater ) and
  2. $100 (sometimes more) Option check written to the sellers.

Schedule inspections, both home and pest—

  1. $250 to $400 (or more) for the home inspection (more for a septic inspection if a septic system is on the property)
  2. $90 - $110 (or more) + tax for the Pest inspection

BOTH the Earnest money and Option Fee are credited at closing. The Inspection fees are not.

Property Tax Information

Texas: Walker County: Huntsville: "Property Taxes for Non-Experts"

The KEY to Understanding Property Taxes. or "Property Taxes for Non-Experts"  (Sorry, copyright issues with the "Dummies" one)

The key to understanding Property Taxes and Exemptions is "taking them apart" and putting them back together again.

For our purposes, we will cover the following:

  • Tax Rates
  • How they are assessed
  • Exemptions
    • Homestead
    • Over 65
    • AG (Agricultural)
  • How to save money by applying for the appropriate exemptions.
  • Time frames to apply
  • Tax Rates Inside and Outside the city limits
  • Live Examples

Now, stay awake-- 

it's not so bad.  I am a musician, not great at math and I get it, so stay with me. You could save some hard earned cash.

TAX RATES INSIDE AND OUTSIDE THE CITY LIMITS:

Basically, in Walker County, the tax rate within the city limits is 2.34 and within the county (OUTSIDE the city limits), the tax rate is 1.94. 

Now, in English and I will answer the question--"How much will my taxes be?"

A property located within the city limits in Huntsville/Walker County with a tax value of $100,000 will have $2,340 tax due if there are no exemptions.  (We'll get to exemptions next) 

And if the property were not within the city limits, the amount of tax due with no exemptions would be $1,940.

Where do "tax rates" and Babies come from.  (Okay, I will answer the former, not the latter--Just seeing if you are still awake) 

The 2.34 tax rate is made up of several taxing entities. In Huntsville/Walker County TX, they are as follows:

Entity

Description

Tax Rate

CAD

WALKER CO APPRAISAL DISTRICT

0.000000

EC

Elkins/City

0.000000

HC

Huntsville City

0.400700

HI

Huntsville ISD

1.210000

WC

Walker County

0.579300

WH

Walker County Hospital Disctrict

0.153000

Total Tax Rate:

2.343000

For a property outside of the city limits, the 1.94% rate is made up of everything above less the city portion of .40%.  And it looks like this:

Entity

Description

Tax Rate

CAD

WALKER CO APPRAISAL DISTRICT

0.000000

FB

Walker County ESD 2

0.100000

HI

Huntsville ISD

1.210000

WC

Walker County

0.579300

WH

Walker County Hospital Disctrict

0.153000

Total Tax Rate:

2.042300

 EXEMPTIONS:

What are "Exemptions," and how do they impact your "out of pocket" taxes.

 There are several types of exemptions. I will cover a few of them.  

  1. "Homestead" Exemption
  2. "Over 65" Exempton
  3. "AG" (Agricultural) Exemption

1.  "Homestead" Exemption

This is the Exemption EVERYONE should have for their primary residence. 

Not everyone knows, however, that the Homestead Exemption needs to be applied for. 

It is granted for the applicable tax year if application is made on, or prior to April 30th in Walker County.  May 1st and later, the exemption will be granted for the following tax year.

What is the Homestead Exemption and how much money can I save on my Taxes?

The "Homestead Exemption" is granted to property owners for their claimed Primary Residence.  Only 1 (one) residence per property owner may qualify for a Homestead Exemption.

It reduces the taxable value by $15,000 for the ISD (or school tax) portion, which in Walker County is 1.21% which represents a little over half of the rate.

Here is an example of how the Homestead Exemption impacts the tax due. 

$15,000 x .0121 (1.21%) = 181.5

The Homestead Exemption in this county reduces the tax due by $181.50.   Every little bit helps.

The tax valuation in this example is $208,900.00  Notice the valuation change from $208,900 to $193,900 for the ISD Portion. ( a difference of $15,000)

Year

Taxing Jurisdiction

Taxable Value

2010

Huntsville City

$208,900

2010

Huntsville ISD

$193,900

2010

Walker County

$208,900

2010

Walker County Hospital Disctrict

$208,900

  

2010 TOTAL:

  

2. "OVER 65" EXEMPTION

The next Exemption we will cover is the "Over 65" Exemption.  Pretty self explanatory exemption.  This exemption must also be applied for in the same time frame as the Homestead Exemption.

This Exemption, however, is quite a bit more generous.  AND it can be used in conjunction with the Homestead Exemption.

It reduces the taxable value by $12,000 for the ALL taxing entities and an ADDITIONAL $16,000 for the ISD (or school tax) portion - and used in conjunction with the Homestead Exemption, it represents a total of $31,000 reduction in the assessment value.  

* Remember, in Walker County the ISD or School Tax is 1.21% which represents a little over half of the rate. 

Here is an example of how the "Over 65" Exemption impacts the tax due.  The Over 65 in this county reduces the tax due by $135.65 and used in conjunction with the Homestead Exemption in this county reduces the school tax due by $375.10.   That's a total of $510.70 !  And again, every little bit helps.

The tax valuation in this example is $180,690.00.  Notice the $12,000 reduction in valuation for all taxing entities and an additional $31,000 reduction for the ISD Portion (the $16,000 "over 65" and $15,000 "Homestead).

Roll Value History

Year

Improvements

Land Market

Ag Valuation

Appraised

HS Cap

Assessed

2011

N/A

N/A

N/A

N/A

N/A

N/A

2010

$176,690

$4,000

0

180,690

$0

$180,690

Tax Due 

Year

Taxing Jurisdiction

Taxable Value

Base Tax

2010

Huntsville City

$168,690

$607.56

2010

Huntsville ISD

$149,690

$928.09

2010

Walker County

$168,690

$867.94

2010

Walker County Hospital Disctrict

$168,690

$258.10

  

2010 TOTAL:

  

$2661.69

 3. AG (Agricultural Exemption)

This is an exemption for land used for cattle or farming purposes. This Exemption is the MOST generous of them all.

It reduces the taxable value for both the land and the improvement (home).

For this type of exemption in Walker County, for example, it is necessary to have a minimum of 10 acres PLUS an appropriate amount of land for the improvement (home). Generally about an addition ¾ acre.

Here is an example of how the AG Exemption for these purposes, impacts the tax due.  A parcel with a taxable value of $52,210 is reduced to tax due on a $9,770 value. That takes the tax due from $1012.87 to $189.54

"Holy Cow!"  (Might as well be “holy” for those savings!) 

 #

Type

Description

Acres

Sqft

Eff Front

Eff Depth

Market Value

Prod. Value

1

IMP3

IMPROVED PASTURE SOIL 3

12.3670

538706.52

0.00

0.00

N/A

N/A

2

HS

HOMESITE

1.0000

43560.00

0.00

0.00

N/A

N/A

3

UTILITY

UTILITIES

0.0000

0.00

0.00

0.00

N/A

N/A

Roll Value History

Year

Improvements

Land Market

Ag Valuation

Appraised

HS Cap

Assessed

2011

N/A

N/A

N/A

N/A

N/A

N/A

2010

$0

$52,210

1,240

9,770

$0

$9,770

2009

$0

$52,210

1,240

9,770

$0

$9,770

2008

$0

$47,210

1,340

1,340

$0

$1,340

2007

$0

$35,290

1,340

1,340

$0

$1,340

Year

Taxing Jurisdiction

Taxable Value

Base Tax

Base Taxes Paid

Base Tax Due

Discount / Penalty & Interest

Attorney Fees

Amount Due

2010

Walker County

$9,770

$56.60

$0.00

$56.60

$3.97

$0.00

$60.57

2010

Walker County Hospital Disctrict

$9,770

$14.95

$0.00

$14.95

$1.05

$0.00

$16.00

  

2010 TOTAL:

  

$71.55

$0.00

$71.55

$5.02

$0.00

$76.57

It can also be given for special types of native grasses or other special reason.  The property needs not be a minimum of 10 acres plus ¾ acre.  This example is a 5 acre tract.

So, stay with me.  Native Grass can save you a BUNDLE!  Who knew?!

 

Please note: Each county has a different definition of what is required to have an AG Exemption.  It is important to check with the Appraisal District for the most up to date information and definitions.

 

Here is an example of how the AG Exemption for these purposes, impacts the amount of tax due.  A parcel with a taxable value of $45,000 is reduced to tax due on a $500 value. That takes the tax due from $873 to $9.70.  Holy Native Grasses, Batman!

Here is a real, live example.  Notice how the value is $45,000 and is taxed at a $500 valuation.  THAT really helps, especially if you are buying land with the intention to build and still own another property.  This saves you BIG bucks when the tax bills come out.

#

Type

Description

Acres

Sqft

Eff Front

Eff Depth

Market Value

Prod. Value

1

IMP3

IMPROVED PASTURE SOIL 3

5.0000

217800.00

0.00

0.00

N/A

N/A

Roll Value History

Year

Improvements

Land Market

Ag Valuation

Appraised

HS Cap

Assessed

2011

N/A

N/A

N/A

N/A

N/A

N/A

2010

$0

$45,000

500

500

$0

$500

2009

$0

$45,000

500

500

$0

$500

2008

$0

$45,000

500

500

$0

$500

2007

$0

$45,000

500

500

$0

$500

2006

$0

$45,000

450

450

$0

$450

 

Year

Taxing Jurisdiction

Taxable Value

Base Tax

Base Taxes Paid

Base Tax Due

Discount / Penalty & Interest

Attorney Fees

Amount Due

2010

Huntsville ISD

$500

$6.05

$0.00

$6.05

$0.42

$0.00

$6.47

2010

Walker County

$500

$2.89

$0.00

$2.89

$0.20

$0.00

$3.09

2010

Walker County Hospital Disctrict

$500

$0.77

$0.00

$0.77

$0.06

$0.00

$0.83

  

2010 TOTAL:

  

$9.71

$0.00

$9.71

$0.68

$0.00

$10.39

So, I hope this clears up at least some questions about the Wild World of Property Taxes.  Especially in Texas it is important to understand.  We have some of the higher rates on property values---but NO State Income Tax.  AND you get to live in TEXAS!  The most beautiful country in this country.  (Reference: The Republic of Texas 1836 to 1846 -- http://www.tsl.state.tx.us/treasures/republic/index.html )

So, knowing about Exemptions REALLY Pays off--In cold, hard cash.

If you have not already done so, APPLY FOR YOUR HOMESTEAD EXEMPTION Today!  

Find land with an AG exemption to enjoy country living as a get-away!

And if you are over 65, get your exemption!  You deserve it. 

Looking for a property or Want to SELL a property in Walker, Montgomery, Polk, Trinity or San Jacinto Counties, CALL ME!  I am YourSingingRealtor.com