As a new homeowner, understanding financial obligations like property taxes and Homeowners Association (HOA) fees is crucial. This guide will help clarify these costs, explain where to find information, discuss payment methods, and give advice on what you should and shouldn’t do.
Property Taxes
Property taxes are levied by local governments and are usually a percentage of your home’s assessed value.
Where to Find Information: Your tax assessor’s office is the first place to look for information. Many have online portals where you can check your property’s assessed value and your tax rate.
Amount: The amount varies based on your home’s assessed value and your local tax rate. As a rule of thumb, plan for around 1-2% of your home’s value annually, but this can vary significantly by location.
Payment: Property tax bills are typically sent annually around the end of the year.
HOA Fees
If your home is in a community with a Homeowners Association, you’ll likely have to pay HOA fees. These fees cover the cost of maintaining and improving shared spaces.
Where and How to Pay: HOA fees are typically paid directly to the HOA or a management company they employ. They may be payable online, by mail, or in person.
Where to Find Information: The HOA’s governing documents or your closing paperwork will detail the fees. You can also ask your real estate agent or the HOA directly.
Amount: The amount of HOA fees can vary widely, from under $100 to several hundred dollars per month, depending on the community and the amenities it offers.
Do’s and Don’ts
- Do budget for property taxes and HOA fees. They’re part of your ongoing homeowner expenses.
- Don’t ignore these bills. Late payments can result in penalties, liens, and even foreclosure in extreme cases.
- Do contact your tax assessor’s office or HOA if you have questions or if you don’t receive a bill when expected.
- Don’t forget that property taxes and HOA fees may increase over time.
Understanding property taxes and HOA fees is an essential part of managing your new home’s costs. By staying informed and prepared, you’ll navigate homeownership like a pro. Welcome to the world of informed homeownership!
