Q&A
Here are some of the most frequently asked questions in real estate. If you have a question that has not been included in this comprehensive list, please e-mail  us and we will get back to you as quickly as possible.

Is there a difference between market value and appraised value?
The main difference between appraised and market value is that the former is an opinion, while the latter is based on a comparative market analysis. A certified appraiser's opinion of property value is based on comparable sales within the last six months with fees ranging from $200 to $300. Lenders require appraisals as part of the loan application process. A comparative market analysis is an estimate of value based on sales of comparable properties, and is usually provided by an agent or broker.

Are property taxes deductible? What about taxes on second homes or investment properties?
Property taxes on all real estate transactions are deductible against current income taxes. Interest and property taxes are deductible for second homes if expenses are itemized. The best advice to follow can be provided by your accountant or tax adviser.

What are, and why do we pay, property taxes?
Property taxes are the annual fees that property owners pay for owning real estate - usually 1.5 percent of the property's current market value, although they are calculated in many different ways. The county or local government uses the money to help fund public services.

What are closing costs?
Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a property. They may include upfront loan points, title insurance, escrow charges, document fees, and prepaid interest. Unless these charges are included in the loan, they are paid at the closing.

What kind of home insurance should I get?
An "all inclusive" policy is standard fare when dealing with home insurance. This type of policy will usually cover claims involving:
-Lightning, wind, storms, hail
-Fire, explosions, smoke
-Electrical damage and water damage from plumbing
-Heating or air conditioning systems
-Floods

For personal property, homeowners can increase coverage beyond the depreciated value of items such as televisions or furniture by purchasing a replacement cost endorsement. Another option is to purchase an inflation rider, which automatically increases coverage as the property value increases.

Do I need a home inspection?
Absolutely. For example, roof, plumbing, and electrical repairs are major problems and can amount to tens of thousands of dollars or more. Think twice before signing a contract to purchase property "as is."

When is the best time to buy?
Here are some great reasons to buy:
-You need a tax break.
-The mortgage interest deduction can make home ownership appealing.
-You plan to use the property long enough for any appreciation to cover your transaction costs.
-You want to own, not rent.
-You can afford it!

How does one choose between buying and renting?
While homeowners have the freedom to make decisions regarding their property, most renters do not worry about maintenance and other financial obligations associated with property ownership. Homeowners that secure a fixed-rate mortgage, are better able to plan financially because monthly housing expenses will not increase dramatically. This way, wise investments can be made, and, hopefully, yield long-term profits on the initial investment.

However, such returns depend on value appreciation. Aside from maintenance costs, the monies paid to the lender is usually greater than the total amount paid in rent. To determine whether a property is a long-term investment, prospective buyers should spend some time investigating potential communities or neighborhoods.

How do I hire a contractor?
Most people rely on referrals when hiring a contractor, but even in a referral situation the contractor should be subject to a background check. Inquire with the state regarding a licensing board for contractors. Then, call to learn whether any complaints have been filed against the contractor. The Better Business Bureau will also keep complaints on file. Both of these agencies are excellent resources for determining whether a contractor is reliable.

Next, you want to interview all candidates, being sure to ask whether they carry worker's compensation benefits as well as an umbrella general liability policy. If contractors do not have coverage, you could be responsible for worker injuries incurred on your property. Further, obtain the policy number, insurance company name and phone number to verify coverage. Take your time while making this important decision, and never pay a deposit at your first meeting.

How do I determine the price of my property?
The best way to determine the price of a property is to refer to a comparative market analysis, which is a report based on recent sales of comparable properties in your neighborhood. Although the real estate market fluctuates, it is still important to base the list price on current market conditions.

What are Riverfront properties?
These properties front the Hillsborough, Alafia, Little Manatee or many other rivers and afford the widest views.

What are the Flood Zones in Hillsborough County?
Hillsborough County has been divided into Flood Zones to signify the degree of flooding that might occur. Please visit the Hillsborough County Government website to get more information on zoning.

What does Freshwater mean?
These properties are located on canals, basins or lakes but do not have access to the river and the Gulf of Mexico. The freshwater canals are separated form the saltwater canals by a "Weir". A weir resembles a low concrete dam or spillway. As water flows into the freshwater canals from rains, the overflow will spill over into the saltwater canals. You can not take a boat over the weirs.

What does Golf Course area mean?
These properties offer frontage on a golf course. The offers many golf courses to choose from and is golfer's dream come true!

What does Gulf Access mean?
These properties offer access to the river and the Gulf of Mexico, but the boater must travel under a low bridge (7 to 10 feet high at low tide) and the boat size is restricted. Many people own 10 to 30 foot boats and have no problem negotiating the low bridges.

What does Off Water mean?
These properties are the most plentiful properties in the area. The values here depend on the availability of services like water and sewer and the proximity to amenities like shopping, grocery stores restaurants and other entertainment areas.

What does Restricted Access mean?
The usage of the term Restricted as it applies to water access will mean different things to different real estate agents. These properties probably offer access to the Gulf of Mexico, but the boater may need to travel under a bridge or powerline and the boat size is restricted in height. The depth of the water may also be a restriction for boating. Also, some areas require the boater to travel over a boat lift or through a boat lock. We are waterfront experts in this area and we will usually have the local knowledge to determine the boating restrictions that apply for a particular piece of property.

What does Seawall mean?
All lots with access to the river require a seawall to be built when a home is constructed. The city may determine a Unit 70% built upon and require the remaining canal lot owners in that Unit to install a seawall. This is referred to as having a mandatory seawall requirement. Freshwater lot owners are not required to install a seawall upon construction of a home. However they must do a slope instead. The cost for a seawall could be $6,000 to $12,000 and a slope is around $5,000. A concrete dock adds approximately $2,400.00 to the cost of a seawall.

What is a Boat Dock?
A boat dock is a wood or concrete platform that gives a boater access to a waterway. The boat dock may or may not have a boatlift attached. A boat lift resembles a forklift that picks the boat up out of the water. The lift usually comes in sizes that denote the maximum number of pounds that can be lifted. Most boatlifts are 5,000, 7,000 or 10,000 pounds of lifting capacity. Many homes may include a boat lift behind the house to lift a boat out of the canal. Keeping your boat stored on a boat lift will help keep the bottom clear of barnacles and other marine organisms.

What is a Wier?
A weir is a concrete spillway that is designed to prevent saltwater intrusion into the freshwater canal system. These concrete dams allow water to flow from the freshwater canal system into the saltwater canals and provide vital flood control.

What is meant by the term Rear Exposure?
This term is used to describe the orientation of the rear of the home. The types of Rear Exposure are: Southern Rear Exposure, which offers the most indirect sunlight to the rear of the home and heats the pool a couple of months longer; Northern Rear Exposure is the coolest for your home and offers less indirect sunlight; East Exposure is called the "Sunrise Patio". The rear of the home is completely in shade in the afternoon; and the Western Rear Exposure offers the most direct sunlight to the rear, but it offers a great view of sunsets each evening!

Why should I buy a home, instead of renting?
Number 1, you will have a sense of personal satisfaction owning your own home. You will be able to create your own private space that is unique to you. When you own, you can do it all your way! Another benefit of owing is that you can deduct the cost of your mortgage loan interest from your federal income taxes. In the beginning, interest will compose nearly all of your monthly payment, for over half the number of years you will be paying your mortgage. This can add up to BIG savings at the end of each year. You are also allowed to deduct the property taxes you pay as a homeowner. Another financial plus in owning a home is the possibility of the home increasing in value over time. If you rent, you write your monthly check and it is gone forever. At the end of your lease, you have nothing and face the possibility of increasing rental rates.

Why should I use a real estate broker?
Using a real estate broker is always a very good idea. We can assist you with the details involved in home buying, particularly the financial ones. We can guide you through the entire home buying process and make the experience much easier and convenient for you. Our agents are well-acquainted with all the important things you want to know about the Tampa Bay Area.

Is a termite inspection required?
For conventional loans, the investor or lender will require a termite inspection if there are visual signs of infestation. All government loans require a pest inspection on any structure that is ground level or of total wood construction (including condos). There are termites in Southwest Florida and even though many homes are concrete block construction (CBS), it is wise and highly recommended to have any home inspected for termites regularly.

What are the facts on mold?
Here are some things to consider on this topic of growing importance. There is no such thing as a mold-free home; doorways, windows, heating, ventilation, and air conditioning systems serve as the main points of entrance. Though mold is not hazardous to healthy people, it can make asthma, hay fever, and allergies worse or cause infections in people with compromised immune systems.

Mold thrives in moist areas and can ruin paint, wallpaper, drywall, and wood surfaces. To keep the substance in check, the American Society of Home Inspectors urges homeowners to quickly fix plumbing or roof leaks; immediately wash and completely dry mold-infested areas; replace ceiling tiles, carpeting, and other absorbent materials that have been contaminated; clean and dry air conditioner, refrigerator, and dehumidifier drip pans often; and use exhaust fans or open windows when showering and cooking. They also are advised to keep indoor humidity levels at 30 percent to 50 percent relative humidity; use bathroom cleaning products that kill mold; add mold inhibitors to paint; and avoid carpeting bathrooms.

What does the term "as-is" mean?
The term "as is" means the seller is not going to make any repairs to the property. This, however, does NOT mean that the seller is exempt from disclosing known problems with the property. The seller must disclose all known defects to the buyer. Not disclosing known defects is fraud, a very serious crime. Homes sold "as is" often bring a lower sales price, as the buyer will make price adjustments for known, necessary repairs. It is wise, and recommended, that the buyer have a professional home inspection done on the property. It is also recommend that the buyer have a roof inspection done by a qualified roofing company, as well as have the pool and air conditioning system inspected by a service company.

Why is a home appraisal necessary for getting financing? Can't you just use the tax value of the home?
Appraisals compare your home to other homes in your area that have recently sold. Tax values obtained from your taxing authority can sometimes be higher or lower and may not reflect the actual appraised value of the home. An appraisal is necessary for the lender to justify the loan amount being requested, as required by secondary investors. You should not rely on the appraisal for assurance about the condition of your home.

Can you apply for a loan before you've found a property?
Yes! You have the opportunity to get pre-approved for a mortgage today. A pre-approval will take into consideration your personal information such as income, debt and credit history. If you receive a pre-approval, we will use this information to determine your maximum loan amount. Once you find a property we can complete the remaining pieces of the application.

Do you know about any first-time home buyer programs?
Absolutely! For many first time home owners, the down payment is the biggest obstacle to home ownership. If this is the case for you, there are programs to assist you. Another option is to select a loan with "premium pricing." These loans are displayed on the Cendant site with a negative number of points. If the number of points associated with a rate is negative, this means that the lender will pay those points to the borrower at closing instead of the borrower paying points to the lender. These funds are applied toward closing costs and offered in exchange for a slightly higher interest rate.

Do you need help choosing a lender?
Trying to choose a lender can be a difficult task. Start by asking for referrals from friends, family, neighbors and your real estate agent. If you are building, ask the builder for a referral, since most are willing to help you find financing. Find out what kind of rates the lender offers and the terms of the loan, especially on adjustable rate mortgages (ARM). Find out what their "junk" fees are.

Do you need to sell your existing home before you apply for a new mortgage loan?
The answer to this question is "No". You can apply for a new mortgage loan before you sell your current home. However, depending on your income and debt levels, you may be required to sell your current home before you can close on your new loan.

Have you ever wondered when you should start the mortgage process and how much of a loan you can afford?
The best time to look for a mortgage is before you look for a house. This enables you to determine the amount of money you can borrow and how much house you can afford.

How do I know if I can get a loan?
If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer and save up your money. But before you give up, why don't you contact us? We may be able to help you evaluate your loan potential and find something that fits your budget. We know about many kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you will know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.

How much money will I have to come up with to buy a home?
The amount of money required to purchase a home depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money, down payment and closing costs. When you make an offer on a home,  your earnest money will be put into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you.

How much of a down payment will you need to purchase a home?
The minimum down payment required depends on the loan program you select. Most lenders offer loans with various down payment options, including no down payment and low down payment programs.

How often do mortgage interest rates change?
Due to market fluctuations, interest rates are subject to change daily. Many lenders will allow you to lock and/or float the interest rate once you have been approved for a loan. Check with your lender about any interest rate protection they may offer.

 I am a single parent, how would I go about buying a home?
Although you do not have the benefit of two incomes on which to qualify for a loan, there is no reason that you cannot become a homeowner. Become familiar with the process, pick a good real estate broker and think about getting pre-qualified for a loan. You can also contact us at (813) 661-2417 and we can put into contact with several mortgage brokers that may be able to assist you.

I have poor credit, and I don't have much for a down-payment, can I become a homebuyer?
Yes, there are many programs available that may allow you to buy a home. You may be a good candidate for one of the federal mortgage programs that are available. A good place for you to start is by contacting one of the HUD -funded housing counseling agencies. They can help you sort through your options. In addition, contact us and we will help you contact your local government to see if there are any local homeownership programs that might work for you.

If you finance 100% of the sales price, why can't you finance the closing costs on a VA loan?
The Veteran's Administration does not permit the loan amount to exceed the value of the home. Therefore, 100% of the sales price can be financed, but all other costs must be paid at closing.

In addition to the mortgage payment, what other costs do I need to consider?
You will be responsible for paying your monthly utilities. These may consist of water, sewer, trash removal, electricity, and gas. If your utilities have been covered in your rent, this may be new for you. We can help you get information from the seller on how much utilities normally cost for the home. In addition, you might have homeowner association (HOA) or condo association (CA) dues. You will also have property taxes, consisting of school board, city and county taxes. Taxes normally are rolled into your mortgage payment. We will be able to help you anticipate these costs so that you can budget accordingly.

So what will my mortgage cover?
Most loans have 4 parts: principal, the repayment of the amount you actually borrowed; interest, payment to the lender for the money you've borrowed; homeowners insurance, a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes, the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you will pay far more in interest than you will in principal, sometimes as much as two or three times more! Because of the way loans are structured, in the first years you will be paying mostly interest in your monthly payments. The interest payment is deductible on your federal income taxes. In the final years, you will be paying mostly principal.

What are ARM Loans?
With Adjustable Rate Mortgages (ARM), the interest rate can change, so your monthly payment may increase or decrease. Most ARMs have rate caps to regulate the amount the interest rate for a loan can increase or decrease over the lifetime of the loan. The interest rates are usually lower for ARMs than for fixed rate loans during the first few years, so ARMS allow buyers to purchase more expensive homes than they could with a fixed rate loan.

What are FHA Loans?
The Federal Housing Administration (FHA) insures some mortgage loans so that more lenders are willing to make loans to borrowers who might not be able to qualify for other loan types. This is true for borrowers with sketchy credit histories or because of high debt-to income ratios. With a FHA insured loan, a homebuyer can make a down payment of as little as 3 percent. The FHA charges the borrower an upfront mortgage insurance premium fee, plus a monthly charge on all loans.

What are VA Loans?
The Veterans Administration (VA) created a loan program to help military veterans purchase homes. VA loans require no down payment. Veterans, current military personnel and spouses of veterans who died of service-related injuries may apply for VA loans. Certification of eligibility is required. If you choose to apply for a VA loan, please make sure that the person with VA eligibility is listed as the primary borrower.

What are fixed rate loans?
With a conventional fixed rate loan, the interest rate charged remains fixed throughout the life of the loan and the monthly payments do not change. While a fixed rate loan offers the borrower security that their payment will not increase, they also do not allow the borrower to take advantage of dropping interest rates. The borrower will need to refinance with a new loan to reduce the interest rate. Fixed rate mortgages are usually 15 or 30 years, but loans of up to 40 years can be found with some lenders. The longer the term of the mortgage is, the lower the monthly payment.

What are lease-options and lease-purchase options?
Buyers who lack funds to make a down payment might want to consider using a lease-option or a lease-purchase agreement. With a lease-option agreement, the buyer leases the home for a specified amount of time, usually 12 to 24 months, after which he/she has the option to buy the home at a price agreed upon during the lease term. With a lease-purchase option, the buyer leases the property for an agreed upon amount of time and is obligated to purchase the property when the lease expires. Lease-option and lease-purchase tenants may have to pay an above market rent and in return they receive rent credits toward the down payment on the property.

What are points?
One point is one percent of the loan amount (for example, on a $100,000 loan, 1 point equals $1,000). Lenders usually will give a lower interest rate depending on the number of points a borrower is willing to pay.

What are the different type of loans available?
Loans can be categorized as either conventional or government backed. Some of the differences between these types of loans are: conventional loans will require the borrower to pay for private mortgage insurance (PMI) if the loan is for more than 80 percent of the purchase price. The government backed loans are known as the Federal Housing Administration (FHA) insurance and the Veterans Affairs (VA) guarantee. The government has "backed" these loans with either insurance or a guarantee.

What documents do you need to complete a loan application?
Depending on the loan program you are applying for you may be asked to provide a variety of documents. Documents may include but are not limited to: a fully executed agreement of sale for the property being purchased, two months bank statements for all accounts, a HUD1 settlement statement on the property you are selling, copy of your recent pay stub, previous W2s, divorce decree, copy of a rental lease, homeowner's insurance policy, flood insurance policy, and any other documents that may be required to approve your loan.

What does "Pre-Qualification" mean?
In a pre-qualification, you will be asked basic information about yourself and the type of home you are interested in buying. You will have the opportunity to view various mortgage programs and their rates. This will help you narrow down which mortgage programs best fit your needs before you apply. If you'd like help to determine the maximum loan amount you may qualify for, you can visit the calculator section of our site.

What does a mortgage lender consider when reviewing a loan application?
There are three categories of information most lenders look at when reviewing a loan application. The applicant's personal information, the subject property information and the mortgage program information. Personal Information includes your income, assets, debts and credit history. This information is used to help determine your ability to repay the loan. Property Information includes using an appraiser to prepare an appraisal report on the property. The appraiser compares your home to other similar homes in your area to determine that the loan amount being requested is acceptable to the lenders investors. The mortgage program information includes such factors as down payment required, repayment terms and length, points, and interest rates.

What does it mean to have a floating rate and what does it mean to lock-in a rate?
These terms are used to describe interest rate protection plans for borrowers who have not yet closed on a property. Many lenders offer this type of rate protection for borrowers. Due to market fluctuations, interest rates are subject to change daily. In order to obtain a specific rate/point combination you must "lock in" your rate with your lender. You are locked into that rate as long as your loan closes by the predetermined expiration date. Your monthly mortgage payments will be calculated based on your locked in interest rate. If the lender offers a floating rate and interest rates decrease, the lender may allow you to "float" your interest rate down to the new lower level.

What is a 4506 form?
A 4506 form is an IRS form that authorizes the mortgage lender to obtain copies of tax returns directly from the IRS on the borrower. Some lenders may require this form to be completed before approving a loan.

What is a Truth in Lending statement?
The Truth in Lending statement provides detailed information about the interest charges and finance charges that you will incur. It defines the cost of your loan expressed as the APR, the amount of interest you'll pay in dollars, and the total of your payments if you make the minimum payment required over the life of the loan.

What is a balloon mortgage?
A balloon mortgage is a mortgage that is amortized over the full term of the loan repayment period but at the end of a specified period the balance of the mortgage comes due. Thus, a balloon payment needs to be made. For example, with a 7-year balloon you would make monthly payments for seven years that have been calculated based on a 30-year mortgage payment. At the end of the 7 years, the remaining principal balance would be due and payable in full.

What is a down payment?
The down payment is a percentage of the cost of the home that you must pay when you go to settlement. The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That's why many first-time homebuyers turn to HUD's FHA for help. FHA loans require only 3% down - and sometimes less.

What is an Annual Percentage Rate (APR)?
The APR rate is the cost of credit on a yearly basis expressed as a percentage. This rate takes into account the costs to obtain the loan, such as points.

What is rate protection and how does it work?
Some lenders offer interest rate protection plans. When you select a rate protection program, the lender sets an interest rate and guarantee this rate will not rise above that capped rate. If the rates go down, your interest rate "floats down" with them. If rates increase, you will close at the capped rate therefore you are protected from the increase. The length of protection offered varies from program to program.

What is seller financing?
Sometimes the seller is willing to finance the purchase of their property. The buyer negotiates a note with the seller and then makes a monthly payment to the seller, the seller then passes that payment on to the mortgage company. If the seller is no longer making a mortgage payment on the property, he/she simply accepts the down payment and monthly payments from the buyer. The seller becomes the lender.

What is the Mortgage Good Faith Estimate?
The Good Faith Estimate (GFE) discloses estimated costs associated with your mortgage transaction. The GFE, by Federal law, estimates the lender's charges along with the local closing agent's charges and fees. The GFE also includes estimated amounts for real estate and property taxes and homeowner's insurance.

What paperwork will be necessary during the mortgage process?
Once you have submitted your application form, the lender will send you a complete loan package including documents for your review and signature. All you need to do is review the application for accuracy, sign where indicated and return the package, along with any requested documentation. Paperwork will vary by lender as well as the speed the documents are processed. Starting early on this process is beneficial to your home buying process.

What's the difference between installment and revolving debt?
Installment debt refers to a loan in which you repay a set amount on a regular basis that will pay off the entire loan in a specified amount of time. This may be a car loan, student loan etc. Revolving debt has no set term or payment, i.e. credit cards.

Where can you go to get a loan?
Mortgage Bankers offer a variety of mortgages and some offer computerized loan origination networks, which list all mortgage programs, rates and fees offered by a variety of lenders. Mortgage Brokers will work with almost any borrower, even those with sketchy credit. Mortgage brokers work with almost any lender to find an "appropriate" mortgage for the homebuyer and they do all the paperwork. Banks, Thrifts, or Savings and Loan give loans to buyers with "B" and below credit ratings.

Why is the Annual Percentage Rate (APR) different from the interest rate?
The APR is a rate that reflects the total cost of your mortgage loan expressed in terms of an annual interest rate. The APR reflects factors including the interest rate on your mortgage loan, the term of the loan, and the other applicable costs of financing such as points, fees and certain closing costs. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.

Why is the number of points associated with a rate sometimes a negative number?
If the number of points associated with a rate is negative, this means that the lender will pay those points to the borrower at closing instead of the borrower paying points to the lender. These funds are then applied toward closing costs. Funds for closing are offered in exchange for a slightly higher interest rate.

You found a great house but you don't have much money for a down payment. What are your options?
There are a variety of programs that require a minimal down payment and some lenders offer programs that require no money down. You may also want to look at an FHA loan. These loans typically require a lower down payment than conventional loans.

Are discount points tax deductible?
In many cases they are. We recommend that you contact your tax preparer, Certified Public Accountant (CPA) or the IRS to obtain a qualified opinion on the deductibility of points.

Can mobile homes qualify for Homestead Exemption?
If you hold title to a mobile home and the land on which it is situated and the mobile home is permanently affixed to the land, you can make application to the Property Appraiser to have the property appraised as real property. This application requires you to purchase an "RP" sticker from the Tax Collector's Office. You must make application for the sticker between January 1st and March 1st. Homestead exemption may be allowed if the mobile home meets the above qualifications and the property owner meets the qualifications for the exemption. When no one individual owns the land, as is the case with some mobile home parks, the park is taxed for the land as a whole (real property) and the improvements to the mobile home are taxed as Tangible Personal Property. However, you still must buy a yearly "MH" tag for the mobile home itself from the Tax Collector's Office.

Can you tell me what my property taxes will be?
In Florida, there are several tax exemptions available to qualified people. Permanent residents of Florida are currently able to take a $25,000 tax exemption for their "Homestead" residence. You should verify all tax information for yourself carefully.

How are property tax bills paid?
Depending on your loan program and state restrictions, your monthly mortgage payment may or may not include funds to pay your property taxes. If your payment includes money for property taxes these funds are held in escrow by the lender and the lender pays your property taxes as they are due. If your payment does not include property taxes, you are responsible for paying them by the due date.

How is property appraised by the Tax Collector?
There are three approaches to value stipulated in the Florida Statutes: 1.) "Direct Sales Comparison", 2.) "Replacement Cost", and 3.) "Capitalization of Income".  Please keep in mind, however, that the best evidence of the fair market value is when several properties similar to yours sell. The property's fair market value can be determined employing one or more of three different methods. The first method is to find properties like yours which have recently sold. However, their selling prices must be analyzed very carefully to get the true picture. One property may have sold for more than it was really worth because the buyer was in a hurry to occupy it and would pay any price to get in. Another may have sold for less than it was really worth because the owner needed cash right away, so was willing to sell to the first buyer making an offer. The Property Appraiser must always consider such over or under sales price to arrive at a fair valuation of your property. The second method is based on how much money it would take, at current material and labor costs, to replace your property with one just like it. If any improvements are not new, the amount of depreciation must also be determined. The final method is used in addition to the other two if you own property which does, or could, provide an income, such as an apartment complex, retail store space, or office building. In that case, the Property Appraiser must consider such dollar facts as your revenues, operating expenses, insurance, maintenance costs, degree of financial risk incurred by owning the property, and finally, the return most people would expect to receive on that kind of property.

What causes the loss of the Homestead Exemption?
The rental of an entire dwelling previously claimed to be a homestead for tax purpose shall constitute an abandonment of said dwelling as a homestead.

What documents are required to file for a Homestead Exemption?
(1) Applicants must hold a valid Florida Driver's License or a valid Florida I.D. Card. A "Valid in Florida Only" license is not acceptable (if you drive a vehicle in Florida.) If you do not drive, please include a copy of your Florida ID Card. (2) Florida vehicle license plate numbers for all vehicles. (3) Voter's Registration Number or Declaration of Domicile (if not a U.S. Citizen) if you do not wish to register to vote. (There is a nominal charge for the recording of a Declaration of Domicile.) (4) A Permanent Residency Card is required if you are not a U.S. Citizen. (5) Social Security Number for applicant. If married, you must also provide spouse's SSN. (6) Date of Birth for applicant(s). Your most recently paid tax bill with Parcel Identification Number or recorded Deed or recorded Contract for Deed.

What if I disagree with the Property Appraiser's market value?
Annually in August, the Property Appraiser sends the Notice of Proposed Property Taxes (TRIM Notice) to all property owners of record. The Florida Constitution and Statutes require that we make appraisals at market value. If you agree that the value of your property is at least as much as shown in the notice, you do not have to do anything. However, if you have any questions about this value we encourage you to contact this Office. If, after contacting Property Appraiser, you still believe that the appraisal exceeds the market value of the property, you may file a petition before the Value Adjustment Board. This Board is created by State Law and is comprised of three members of the Lee County Commission and two Members of the School Board. Petitions to the Board are available from the Property Appraiser's Office. The Board appoints Special Masters, who are qualified real estate appraisers or attorneys, independent of the Property Appraiser's Office, to conduct valuation hearings The Special Masters are appointed only to determine is whether the appraised value of the property exceeds its market value as of January 1. Further details concerning this process can be obtained from the Property Appraiser's Office or on the TRIM Notice.

What is Market Value according to the Tax Collector?
Florida Law requires that the just value of all property be determined each year. The Supreme Court of Florida has declared "just value" to be legally synonymous to "full cash value" and "fair market value." The fair market value of your property is the amount for which it could sell on the open market. The Property Appraiser analyzes these market transactions annually to determine fair market value as of January 1. The Property Appraiser must also oversee +/-100,000 homestead exemptions as well as widow, widower and disability exemptions. In addition, exemption eligibility must be determined for certain religious, charitable, educational, and governmental use. Finally, Agricultural classifications are reviewed annually.

What is Tangible Personal Property?
Tangible Personal Property refers to all assets used in a business or rental activity that are subject to an ad valorem assessment. More specifically, it is furniture, fixtures, tools, machinery, household appliances, equipment, signs, leasehold improvements, supplies, leased equipment -- whatever is used to generate income. Florida Statute 193.052 requires that all tangible personal property be reported each year to the Property Appraiser's Office. Anyone in possession of assets on January 1 who has either a proprietorship, corporation or is a self-employed agent or contractor, must file each year. Property owners who lease, loan or rent property must also file. The deadline for filing a timely return is April 1 of each year. For untimely filings, Florida Statutes provide guidelines for the penalties that may be applied: 5% for each month the return is filed late, 15% for unreported property and a 25% penalty if no return is filed.

What is a Homestead Exemption?
The Homestead Exemption is a constitutional benefit of a $25,000 exemption removed from the assessed value of your property. It is granted to those applicants who timely file by March 1, possess title to real property and are bona fide Florida residents living in the dwelling and making it their permanent home on January 1.

What other tax exemptions available?
WIDOW/WIDOWER'S $500 EXEMPTION - To file for Widow or Widower's Exemption you must be a widow or widower prior to JANUARY 1st of the tax year and bring proof of your spouse's death. (Divorced persons do not qualify for this exemption.) $500 DISABILITY EXEMPTION - In addition to Florida residency, you must provide one of the following: (1) Proof of total and permanent disability from two [2] professional unrelated licensed Florida physicians, the U.S. Veteran's Administration; (2) Proof of 10% or more war-time disability from Veteran's Administration; (3) Present proof of legal blindness. TOTAL EXEMPTION OF HOMESTEAD PROPERTY FROM AD VALOREM TAXATION - Section 196.101, F.S., provides that real estate qualifying for the homestead exemption on January 1, owned by quadriplegic, paraplegic, hemiplegic, or other totally and permanently disabled persons, who must use a wheel chair for mobility, or are legally blind and produce certification of that fact from two [2] professionally unrelated licensed Florida physicians, or the U.S. Veteran's Administration, shall be exempt from ad valorem taxation. (Except for quadriplegics & Veterans, there is also a gross income limitation for this exemption, governing all persons residing upon the homestead, which is adjusted annually.) Section 196.081, F.S. , provides that real estate qualifying for the homestead exemption on January 1, owned by veterans honorably discharged with a service connected total and permanent disability, shall be exempt from ad valorem taxation. Confirmation of the disability from the U.S. Veteran's Administration is required for this exemption. A surviving spouse could enjoy the benefit of this exemption if the veteran was a permanent resident of Florida on January 1 of the year he or she died. SENIOR EXEMPTION - Additional $25,000 Homestead Exemption for persons 65 and over is also an optional exemption, check with your local tax authority.

Where (How) to File for the Homestead Exemption?
New applications for Homestead, Widow/Widower or Disability Exemption MUST BE MADE IN PERSON BETWEEN JANUARY 1 and MARCH 1. These applications may be made in the Property Appraiser's Office or in your various local communities at a time and place designated by the Property Appraiser. The schedule indicating the time and place for filing exemptions is published in your local newspaper, on the Homestead Exemption page at this web site, or you may call the Property Appraiser's Office in January and be advised of this schedule. To make application by mail and to qualify for this exemption, all applicants must complete the application by March 1. Applications post marked after March 1st may be granted for the following Tax Year.

Who is eligible for the Homestead Exemption?
To qualify for this exemption, the following requirements must be complete for all owners of the property: If you drive, all applicants must hold a valid Florida Driver's License. (A "valid in Florida only" license is not acceptable.) Florida vehicle tag (license plate) numbers for all vehicles. Florida voter registration number, or Declaration of Domicile if you do not wish to register to vote. (A nominal charge is made for the recording of a declaration of domicile.) Social Security number(s) for owner(s) and/or spouse. Date(s) of birth for owner(s) and/or spouse. If not a U.S. Citizen, a permanent residency card is required. Your most recent paid tax bill with parcel identification number or recorded deed or recorded contract for deed.

Who must file for the Homestead Exemption?
Those individuals whose names appear on the Deed and who reside on the property must file unless the property is held in title by "Tenancies by the Entireties" (husband and wife) or "Joint Tenants With Right of Survivorship". In these instances, only one person is required to file.

Why Does Appraised Value Change From Year To Year?
When the market value changes, naturally so does appraised (just) value. For instance, if you were to increase the total market value of your property by building a swimming pool in your backyard, the appraised value will increase proportionately. Similarly, should your property's value be decreased by fire or storm damage, the appraised value will decrease to reflect the downward effect on your property's market value. In addition, the entire community's economy, as well as the forces of supply and demand, will affect your property's appraised value. The Property Appraiser does not create this value: he simply discovers it as it exists and values the property accordingly. Buyers and sellers set value by their transactions in the market place.

How do I know if I need flood insurance?
Most standard homeowner's insurance policies do not cover loss due to flood. The law requires that if your home is located in a Flood Hazard Area you must purchase flood insurance. If you choose, you can obtain flood insurance coverage even if you are not required to do so by the lender. The law requires lenders to do a flood hazard determination on all properties securing a mortgage. Be sure to verify your property's elevation above sea level as this can effect your insurance rates. Please visit FEMA for more information.

How much title insurance do you need?
The amount of title insurance needed is based on the value of your home and the amount of your mortgage. Title insurance guarantees the lender and/or the owner against the possibility that there may be an unknown lien or discrepancies in ownership on the property they are purchasing. Lenders need to be covered for the full value of the mortgage; this policy is required and will vary from state to state. There is a one-time fee for the policy that is paid at closing. You can obtain a separate home owner's insurance policy to cover the full value of your home. However, this additional policy is not required. It is customary for the seller to provide the buyer with a new title insurance policy in Hillsborough County, however, this can be negotiable.

What amount of homeowner's insurance is required?
Your homeowner's insurance policy should cover the cost to rebuild the home. This insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.

Why is private mortgage insurance (PMI) required?
Private mortgage insurance (PMI) is an actual insurance policy that the lender takes out to protect them if the borrower defaults on the loan. This protects the lender and at the same time, enables buyers with minimal down payment the opportunity to purchase a home. PMI is usually required for loans that are greater than 80% of the property value. Once 20% or more of equity has been achieved in a home, you can apply to have the PMI removed from most loans.

Can I bring a personal check to a property closing?
No, you will need a cashier's check or certified check for closing. This is to insure that the funds are equivalent to cash.

So what will happen at closing?
As a buyer at the closing, you will sit at a table with your 1228 Home Services Agent , the seller, their agent and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each document, you may want to take the time to read each one and/or ask questions to make sure you know exactly what you are signing. After all, this is a large amount of money you are committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you will need at closing. If you do not get those items, be sure to call your lender BEFORE you go to closing. Be sure to read the HUD booklet on settlement costs . It will help you understand your rights in the process. Don't hesitate to ask questions, we will be happy to answer them to the best of our ability.

What are closing costs?
Closing costs are the costs associated with processing the paperwork to buy a house. Closing costs which you will pay at settlement average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise.

What if my offer is rejected?
Your original offer is often rejected for one reason or another. But do not let that stop you. Now you begin negotiating. we will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that would not normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember, do not get so caught up in negotiations that you lose sight of what you really want and can afford! We are there to help you keep on track.

What is an escrow account?
An escrow account is an account that is established by your lender to pay your real estate taxes, homeowner's insurance and mortgage insurance on your behalf.

What is earnest money?
Earnest money is the deposit you make on the home when you submit your offer. Earnest money proves to the seller that you are serious about wanting to buy the house. When you make an offer on a home, either your real estate broker, the sellers broker or the title company will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies.

What is equity?
Equity is the value of your property that is in excess of claims against it. When you make loan payments, the principle part of your payment increases your equity in your home.

What law establishes escrow account guidelines?
Real Estate Settlement Procedures Act (RESPA) is a federal law that, in general, dictates how lenders establish and maintain an escrow account for you. A few states also have regulations regarding an escrow account for a homeowner within their state; if the state does not have a regulation, the governing of your escrow account falls back to RESPA regulations. Florida has strict escrow account regulations.

When I find the home I want, how much should I offer?
We can help you in this area by providing answers to these questions: Is the asking price in line with prices of similar homes in the area? Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You should get a professional home inspection either before or shortly after you make your offer. We can help you arrange one. How long has the home been on the market? If it's been for sale for a while, the seller may be more eager to accept a lower offer. How much mortgage will be required? Make sure you really can afford whatever offer you make. How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.

Where do you go to close on a property?
You will go to a local title company or attorney who will perform the closing. All your mortgage documents will be waiting for you at closing as well as any other documents requiring your signature.

Who chooses the Title Company?
It is customary that the seller selects the title company, however, this can be negotiated.