Miami Dade real estate taxes tips

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When you buy a property, for the first year of ownership, you will “inherit” the prior owner’s tax rate. This is because taxes are paid in November (in arrears) for the 12 month period from January – December of that same year. Each January, the Miami Dade County Property Tax Appraiser’s Office determines the assessed value for tax purposes for every property in the county. If you purchase a home mid-year, your new base year for tax purposes will begin January of the following year. TRIM notices (aka estimated real estate tax bills) come out in August and real estate taxes can be paid early starting in November

How can I calculate my taxes?

Miami Dade County has a great tax estimator tool on their website miamidade.gov. Enter the market value as 85% of the contract purchase price for the purposes of this estimator tool. If you prefer to do it by hand, take 85% of the contract purchase price and multiply that by 1.75%. That should be a fairly accurate approximation, unless the community you are purchasing in has a CDD tax.

What is a CDD tax?

New communities sometimes have a Community Development District “Non Ad Valorem” tax as an additional line item on the tax bill. This usually ranges from $1000-$4000 per year depending on the community. If you are a first time buyer, it is very important to be aware of this as it could significantly affect your tax bill, monthly payment & even qualifying for a mortgage. 

What are Ad Valorem and Non Ad Valorem taxes?

Ad Valorem Taxes are based on the property’s assessed value for tax purposes and Non Ad Valorem taxes are not. Examples of Non Ad Valorem taxes are waste management and Community Development Districts. 

How does Homestead Exemption work?

State law allows Florida homeowners to claim up to a $50,000 Homestead Exemption on their primary residence. This reduces the taxable value in the following way: The first $25,000 of this exemption applies to all taxing authorities. The second $25,000 excludes School Board taxes and applies to properties with assessed values greater than $50,000.

What is Portability?

Portability is for people who are moving their homestead exemption from one home in FL to another home in FL. It allows you to transfer your current tax savings to the new primary residence. I recommend you use the Miamidade.gov tax estimator to calculate the amount of tax portability you will receive.

If you want somebody to “have your back” during your real estate purchase just give me a call or fill the form below!

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I am not a real estate attorney and this is not to be construed as legal advice. This is just information for the public based on what I have learned being in real estate for the last 18 years.

By the way click here to see How to protect your deposit during a real estate transaction

How to protect your deposit during a real estate transaction

The number one way you can protect your deposit during a real estate transaction is to abide by your contract deadlines.

Most real estate purchase contract deadlines consist of loan application, escrow deposit(s), inspections, appraisal, loan approval, condominium document review, and sometimes an association application deadline. It is important that you structure your contract to allow enough time for each of these events to occur within your deadline date.

You may cancel your contract and receive a refund of your deposit as long as you are canceling within the deadline based on the specific item mentioned for that deadline. For example: if you have a 10-day inspection. You may cancel on any day up to day 10 of the contract based on any property related condition you disapprove of. You may not cancel based on inspections or condition of the property from day 11 on. The same goes for an appraisal deadline or a loan approval deadline.

The absolute best tip I can give any buyer is to ensure they have a “clear to close” by their loan approval deadline. This way their escrow deposit is well protected.

Staying on top of these deadlines and coordinating all of these events is one of the top reasons to work with a real estate agent.

If you want somebody to “have your back” during your real estate purchase just give me a call or fill the form below!

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By the way click here to see which neighborhoods have the highest elevations in Miami..

I am not a real estate attorney and this is not to be construed as legal advice. This is just information for the public based on what I have learned being in real estate for the last 18 years.

Miami neighborhoods with the highest elevations

Clients often ask me to search for homes for them in miami neighborhoods with high elevations. How can I know if the home I will be buying is in a flood zone? Which neighborhoods should I be considering if sea level rise is a concern for me and my family? I will guide you through the neighborhoods in Miami that are not in flood zones, do not require flood insurance & are at the highest elevations for Miami.

In this blog series, we will go neighborhood by neighborhood highlighting the boundaries and features of each.

As a buyer, you should research the property and flood maps—or have your real estate agent check—to see if it’s in a flood hazard area.
If you’re obtaining financing, the mortgage company will investigate the most updated flood zoning as well.

In this post, I will start a series of videos showing some of the areas in Miami that are not affected by the floods.

The first area is Coconut Grove, watch the following video to know what areas of Coconut Grove are on higher elevations therefore they will not be flooded.

The National Flood Insurance Program (NFIP) is a national program that allows participating communities to purchase flood insurance from the federal government.
Buyers can obtain flood insurance from other insurance companies, but NFIP ensures that all buyers have at least one coverage option with their policy.
Regulations regarding the NFIP are subject to change. For more information about the NFIP and to stay informed of any changes that may impact you, visit
https://www.fema.gov/national-flood-insurance-program

Are you looking for a home with high elevation? Happy to help! I have custom searches for you ONLY in areas of high elevation. Just let me know what you are looking for and I will customize a search just for you:

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Please read another of my posts related to this subject:
How will the changes in Flood insurance affect the Miami real estate market?

I am not a sea level rise expert, and these posts are not to be construed as guarantees that flood maps and flood insurance rates will not change in the future. This is just advice from a veteran real estate agent of 18 years in accordance with municipal flood maps, information put out by the government, and public research institutions.