Category: Financial Assistance

8 Factors that Could Increase Your Property Taxes 

Posted on by El Paso Cash Home Buyers

calculating property valuation.

There are many factors that can come into play when paying property taxes. Some homeowners think that if their home value drops, their property taxes drop as well. This is rarely the case. In fact, many of these same homeowners have seen their property taxes gradually increase over the years. Why may that be? There could be several reasons why ranging from more home sales in the area to changes in local or state budgets. To better understand how property taxes and property values are affected, we discuss the main factors at play. 

Home Improvement Projects 

Big or small, home improvement projects trigger reassessments to one’s property value. Home improvement projects are actually one of the main factors that drive a high property tax bill. For example, if you expand your home or add more square footage, it boosts your home’s property value and you can expect a bigger tax bill when your home is reassessed. Homes are reassessed every couple of years, depending on where you live. 

An Increase in Home Sales in Surrounding Areas

Property tax bills are also found to go up when sales are higher in certain neighborhoods. This is because a neighborhood proves itself to be desirable and high in value, therefore your property and surrounding homes will be affected. For the same reason, nearby construction causes your home’s value to go up as well, especially when recreational areas are in the works.

Changes in State or Local Budget

When the state or local government brings change to fund a public service, your property tax assessment may reflect these changes. Some acts of public service include investing in public school systems, improving local roadways, and other related projects. Even if you don’t use these services, there still lies the possibility of paying for them in property taxes. The thing is, everyone who is affected by these changes has to pay taxes just like you. 

Supplemental Tax 

A supplemental tax covers the difference between the assessed value of a property before you bought it (if it has been previously owned) and the new assessed value, which is determined when the property is sold to you. This supplemental tax is issued to homeowners typically in their first year of living in their property. There can be a point in time before this tax kicks in, so it could add an increase to your taxes months after buying a home. 

A “No Visitors” Policy 

As the owner of your home, you don’t have to allow a tax assessor inside, but this can be one of the factors that could make your property taxes go up. Some tax assessors may believe you have home improvements. In some towns, policies are set in place to assign the highest assessed value to homes in these kinds of situations and with no strong way to dispute the assessment without allowing a tax assessor inside, property taxes could easily increase. 

Special Assessments that Affect Your Property 

There could be some special projects that are occurring within your neighborhood that could result in a new assessment of your property tax bill. Some projects include maintenance or construction on water lines, curbs, gutters, and street improvements. Because these projects are designed to enhance the quality of life in your neighborhood, they are most definitely going to be reflected in your property taxes. 

Referendums 

If you have ever gone around different neighborhoods looking for a new home, you will notice that properties that are near schools, parks, or government construction projects in progress tend to be set at higher market values. You may be in the clear for a smaller market value if you buy a home that isn’t close by to local referendums, but they can come up in the future, resulting in higher taxes. 

State and Federal Aid 

All too often, aid issued from state and federal governments that go to local and county jurisdictions changes from year to year. While this is not always the case, issues in aid also depend on changes made in the legislature. Some states see a decrease in aid to local governments, which means homeowners will have to pay more in property taxes. 

Learn More about Big Changes to Come in 2022. Contact Us, Today!

New to the world of real estate? The professionals at Entrust Capital Funding have been in the business long enough that we can help you with concerns about your property. Contact us today to learn more about how doing business with El Paso Cash Home Buyers can benefit you.

How The U.S. Housing Market Has Been Impacted by the 2008 Recession

Posted on by El Paso Cash Home Buyers

3d image of house with graph falling

The financial crisis that occurred in 2008 threw everyone off unexpectedly. After all, it had been the biggest market disruption since the Great Depression. The number of renters to owners has decreased from 43.3% to 38.5%. The people that endured or forced to take up this shift were mostly far east and west coasters, older millennials, and wealthier households. The recession and its effects took most of a toll all the way up to 2014. It might not seem like a significant number, but we can construct a visual to show exactly how this decline has played out. 

An Increase in Rent

Not only is the amount of renters increasing, but so is the actual pay of rent itself, which has risen faster than income. The average rent in the top fifty markets has risen by 22.3%, while incomes have nationally fallen by 5.8% since the recession. To put this into context, the average homeowner spends approximately 30% of their paycheck on making and paying rent. Seems to be a bit much, right?

A Step Down from Homeownership

Not only has there been an existing decline in homeownership, but as well as many of the markets that were hit hardest by foreclosures. As rent increased, renters were having a harder time meeting the payment deadline, eventually being forced to foreclose. Although, most of this foreclosure ended up benefiting no one. Lenders weren’t even able to balance payments themselves. 

The Fortunate Few

There was only a small amount of markets that weren’t directly impacted by this recession. Most of the housing markets that saw the smallest increase in renters were in New York, Connecticut, and Boston. 

Cash Home Buyers Is Here to Help

It can be a gamble to buy a home, and if you’re not comfortable with owning one, it may be in your best interest to sell. Contact Cash Home Buyers today so we can take your homeownership off your hands!

 

Do You Need a Fresh Start? When To Consider Selling Your Home

Posted on by El Paso Cash Home Buyers

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The reality is, the majority of Americans live paycheck to paycheck. On top of paying the bills that come every month such as the mortgage, electricity, water, and other personal needs including groceries and hygiene products, we still have other bills. It could be the credit cards we used to buy furniture and Christmas gifts, a car payment, student loans, something we financed, and essentially this list of additional bills can go on and on. Carrying debt means that not only are we living paycheck to paycheck but essentially we’re taking on additional debt in the form of interest that won’t go away until the account is paid in full.

It’s no surprise that the desire to start all over again is alive in so many of us. We’ve all made mistakes with money even if it was as minor as buying the wrong pair of shoes that we can no longer return, the feeling of defeat is something we’ve all experienced. If life were as simple as hitting a reset button the majority of us would have hit it by the time we turned 32. But since we don’t have this option, it’s time to be practical. This begins with a financial plan.  

Creating a Financial Plan — Deciding What Goes and What Stays

Think back to a time when you didn’t have debt. What did your life look like? Perhaps you weren’t driving the same vehicle, your student loans were non-existent, you didn’t own so much stuff, or perhaps you didn’t have the house you live in today. It’s easy to get comfortable to a certain lifestyle but once you realize you can longer afford that life, it’s time to make changes.

Making a financial plan begins with listing all of your debt. Write down the lender and exactly how much you owe. Then, determine how long it’s going to take to pay off those accounts. Once you have a clear picture of what your true debt looks like, it’s time to decide what should stay and what should go. Do an inventory of our home. Clean out the garage and see what items you could possibly sell.

One of the biggest items on your list will easily be your home. If you can longer afford your mortgage and your income won’t be changing anytime soon, it’s time to sell.

Selling Your Home for Cash

Imagine not having a monthly mortgage. Or imagine if that payment was even half of what it is today. You could pay off those credits and you wouldn’t feel like you’re consistently suffocating. When you sell your home for cash, not only will you have the ability to start fresh but you can make wise decisions with a clear mind that will put you in a better position then if you were to stay in the one you’re presently in.

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Explore How Selling Your Home in El Paso Can Provide You With Financial Freedom

El Paso Cash Home Buyers is an investment company. We buy homes and invest our own resources to fix them up and make them move-in ready for the next dwellers. When you sell us your home, we are investing in you. Our cash offers are competitive because we know that this amount is going give you the leverage you need to begin your new journey. But above all, our offers are based on the real market value. We’ll never ask you to make any repairs and we always buy as-is. You can think of us like a reset button. Sell us your home and start fresh!