5 hidden costs of buying a home

Closing Costs

Closing costs are fees that are paid at the time of closing, which is when the sale of the home is finalized. These costs typically include fees for things like the title search, appraisal, and legal fees. Depending on the cost of the home and the location, closing costs can be significant, and can range from a few thousand dollars to tens of thousands of dollars. It’s important to budget for these costs when you’re planning to buy a home.

Moving Costs

Once you’ve purchased your new home, you’ll need to move all of your belongings into it. This can be a significant expense, especially if you’re moving a long distance or have a lot of belongings. Some of the expenses you might encounter when moving include hiring a moving company, renting a moving truck, buying packing supplies, and paying for storage if you need to store your belongings temporarily.

Home Inspection

Before you purchase a home, it’s important to have it inspected by a professional home inspector. The cost of a home inspection can vary, but it’s generally a few hundred dollars. While this cost may seem like a lot, it’s worth it to ensure that you’re not buying a home with serious issues that could cost you thousands of dollars in repairs down the line.

Title Insurance

Title insurance is an insurance policy that protects you in case there are any issues with the title of the home you’re purchasing. This can include things like liens, easements, or other legal issues that could affect your ownership of the home. The cost of title insurance can vary, but it’s usually a few hundred dollars. While it’s not required by law, it’s highly recommended that you purchase title insurance to protect yourself in case there are any issues with the title.

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4 can’t miss tax breaks for 2022 homebuyers

01. A HOMEOWNER’S BIGGEST TAX BREAK? MORTGAGE INTEREST! – If you’re a homeowner, being able to save on your yearly mortgage interest can be an incredibly lucrative perk. For those filing taxes jointly, it’s possible to deduct up to $750,000, while single filers get $375K.

02. DID YOU BUY MORTGAGE POINTS? DEDUCT THOSE, TOO! – Mortgage points are considered prepaid interest, so they can be added to total mortgage interest reported. This is an easy way for you to reduce what you owe to the IRS during tax season.

Your tax professional can help you take advantage of all the tax brakes you qualify for

03. MORTGAGE-INTEREST TAX CREDIT FOR NEW HOMEOWNERS – If you’ve applied for a mortgage from your state or local government, you may be eligible to receive additional tax benefits! Mortgage Credit Certificates allow qualified homeowners the chance to get back some of their hard-earned money in the form of credits against taxes they owe. These returns won’t net any extra cash — but could provide significant savings if used toward owed federal taxes.

04. DON’T FORGET TO CHECK PROPERTY TAXES, TOO! – You may be able to deduct up to $10,000 combined from your property taxes and state or local income on federal tax returns. But it’s essential for you to track all annual property tax payments in for this deduction to be used.

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What is Homestead Exemption?

Homestead Exemption is a property tax reduction available to those who own and occupy a property as their primary residence. To apply for a homestead exemption, the home must be your legal residence as of January 1st. Before you file you must have a copy of your recorded deed, have the property address listed on your state ID, and have all vehicles registered at property address. Let’s dig a little deeper:

01. Have a copy of your recorded deed – This will be sent to you in the mail or via email from the closing attorney. You do not need the original deed, just a copy is fine. If you do not have a copy, reach out to the attorney that you closed with and they will provide.

02. Have the property address listed on your state ID – Depending on how many times you’ve replaced your license in that last few years, you may be able to do this online. If this is not allowed, plan a trip to the DDS.

03. Have all vehicles registered at address – This, along with your ID listing the same address, will help prove this home is your primary residence. All vehicles registered to you must be registered at the same address.

How to file for Homestead Exemption

A homestead exemption reduces the taxable value of your home. For example, if your home is appraised at $200,000, then the assessed value is 50 percent of that amount, or $100,000. With a $25,000 homestead exemption, you only pay taxes on $75,000. [Source: decaturga.com] You’ll need to visit your county’s website and fill out the exemption application to take advantage of this. We have linked below 4 metro counties! If you don’t see your county’s name listed, reach out to us here and we will be happy to assist! 

Couple quick notes:

01. Deadline date is April 1st, 2023 – Applications are due by April 01 for the current tax year.

02. Your exemption will be automatically renewed each following year as long as you continue to occupy the home under the same ownership.

03. You cannot have the homestead exemption on more than one property.

04. Electronically Recorded Deeds: Some counties in Georgia now accept deed recordings electronically. If your deed is recorded electronically, you will receive a copy of the recorded deed via email instead of the original deed.

County Links

For Cobb County click here!

For Dekalb County click here! 

For Fulton County click here!

For Gwinnett County click here!

Other exemptions you may qualify for include: Individuals 65 Years of Age and Older May Claim an exemption from state tax on their home and 10 acres of land surrounding the home, Individuals 65 Years of Age and Older May Claim a $4,000 Exemption, Individuals 62 Years of Age and Older May Claim Additional Exemption for Educational Purposes, Floating Inflation-Proof Exemption for ages 62 and older, Homestead Exemption for Disabled Veteran or Surviving Spouse, Homestead Exemption for Surviving Spouse of U.S. Service Member, and Homestead Exemption for Surviving Spouse of Peace Officer or Firefighter. To learn more about these exemptions click here or talk to your CPA! Want to learn more about listing or buying your next property? Connect with a Sage & Cedar agent here!

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To apply for a homestead exemption, the home must be your legal residence as of January 1st 2021.

Before you file you must:

01. Have a copy of your recorded deed – this will be sent to you in the mail or via email from the closing attorney. You do not need the original deed, just a copy is fine. If you do not have a copy, reach out to the attorney that you closed with and they will provide.

02. Have the property address listed on your state ID – Depending on how many times you’ve replaced your license in that last fe years, you may be able to do this online. If this is not allowed, plan a trip to the DDS.

03. Have all vehicles registered at address – This, along with your ID listing the same address, will help prove this home is your primary residence. All vehicles registered to you must be registered at the same address.

A homestead exemption reduces the taxable value of your home. For example, if your home is appraised at $200,000, then the assessed value is 50 percent of that amount, or $100,000. With a $25,000 homestead exemption, you only pay taxes on $75,000. [Source: decaturga.com]

Couple Quick Notes…

01. Deadline date is April 1st, 2021 – Applications are due by April 01 for the current tax year.

02. Your exemption will be automatically renewed each following year as long as you continue to occupy the home under the same ownership.

03. You cannot have the homestead exemption on more than one property.

04. Electronically Recorded Deeds: Some counties in Georgia now accept deed recordings electronically. If your deed is recorded electronically, you will receive a copy of the recorded deed via email instead of the original deed.

County Links:

• Cobb County

• Dekalb County

• Fulton County

• Gwinnett County

Looking to get started with an S&C agent? Contact us here!

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