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The State of Florida is a truly wonderful place to live, especially if you consider the property tax savings that you can take advantage of. As a resident homeowner in Florida, two important tax saving mechanisms are available to you: (a) Homestead Exemption (HEX) and (b) “Save Our Homes” (SOH CAP).
If you’re a new homeowner Florida or made a move during 2024, applying for the Homestead Exemption should be at the top of your to-do list. It could save you a small fortune over the years.
Here’s the deal, you can apply for Homestead Exemption between January 1st and March 1st. Remember, you must have been living in the home as your primary residence as of January 1st, 2025.
The Homestead Exemption in Miami-Dade County is pretty straightforward. As long as you, a married couple, own the home and it is your primary residence, you are entitled to $50,000 worth of property tax exemption from all taxing authorities except School Board taxes (which stops at $25,000 of exemption).
But wait, there’s more! The Homestead Exemption also comes with built-in protection against yearly skyrocketing property taxes. It caps the annual increase of your assessed value to 3% or the Consumer Price Index (CPI), whichever is lower. This is known as the “Save Our Homes” (SOH CAP) benefit, and it can result in substantial savings over time, especially in a hot real estate market like Miami.
If you have any questions, please visit the comprehensive guide I created at miamihal.com/homestead
Realtors Aren’t the Reason for Expensive Housing
It seems that as the residential real estate market continues to be an ever more complex and expensive landscape, someone must get the blame. On March 19, 2024, President Biden said in a speech about lowering housing costs for American families, “I’m calling on Realtors to follow through on lowering their commissions to protect homebuyers.” Besides being an audience-pandering statement, this was factually inaccurate.
Realtors are trained professionals who earn compensation for successfully putting together real estate deals. During their work, they often assist buyers (and seller) to find lower cost insurance, real estate tax incentives and favorable mortgage rates. Biden’s request for agents to lower commissions to protect homebuyers is like comparing a gallon of gas to a Ford F-150. There is no correlation to commissions and rising home prices.
With this mentality, here are a few more hair-brained ideas around the affordable housing crisis that I’ll be watching in 2025.
INSURANCE
If state officials’ and elected leaders’ chatter is any indication, the focus for shoring up the state’s wobbly insurance industry in the coming year is on increasing structures’ storm resistance, not regulating market conditions that have made Floridians No. 1 in highest-average property insurance premiums in the country.
Michael Yaworsky, commissioner of the Florida Office of Insurance Regulation, at November’s Florida Chamber of Commerce 2024 Insurance Summit, alluded to a future in which a new asphalt shingle roof is looked upon as less-than-ideal in the calculus of each homeowner’s premium. “It’s probably time to look past asphalt shingles,” Yaworsky said. “Asphalt shingles often do not last 30 years, as manufacturers claim, so maybe it’s time to start writing them out of the plot in Florida.”
I am NOT A FAN of this thinking. If the insurance industry has one more excuse to either jack up policy pricing or drop coverage, don’t you think they’ll do it?! This move will only exacerbate an already critical housing problem in Florida.
WORKING WITH REALTORS
Just before Christmas, I saw several online resources write advice columns advising people not signing Listing Agreements and Buyer/Broker Agreements with real estate agents.
Their argument is that you shouldn’t be bound to a brokerage for an extended period of time to help you with a purchase or sale. They go on to ask ‘What if you find a house on your own or find a buyer for your house?’ Again, these are entities writing about real estate and giving advice in areas they don’t fully comprehend.
Would you ever self-diagnose yourself if you think you have cancer? No, you’d use a doctor. Would you defend yourself from a multi-million-dollar lawsuit without a lawyer?
In the pursuit of readers or clicks, these knuckleheads are all-too-happy to put real estate professionals under the bus, calling us unessential and expensive. I’d argue (successfully) that not using a Realtor often leads to costly homebuyer and home seller mistakes.
It seems that the real estate crisis is once again bringing the crazy people to the forefront. Keep a level head and let’s talk about your next smart move in a free consultation.
Real Estate Update
If you made a move or changed your deed this year, NOW is the time to file your Homestead Exemption paperwork to save on all future real estate taxes! Contact me if you need help! As of 12/31/24, there were 152 properties for sale in Pinecrest, 10 homes pending sale and 9.5 months of inventory (buyer’s market). If you’re ready to move, contact me to get the best local expertise, truthful guidance and realistic expectations. It’s easy to get started at miamihal.com/getstarted. I invite you to view past episodes of my The MiamiHal Real Estate Show at miamihal.com/the-miamihal-real-estate-show to hear from experts and get the latest real estate news.
Hal Feldman (MiamiHal) is a Realtor with RE/MAX Advance Realty. You can contact him with your story ideas or real estate questions at www.MiamiHal.com, Hal@MiamiHal.com or www.facebook.com/MiamiHal
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