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Forty Five Days To Go... To Qualify for The Texas Homestead Exemption for Calendar Year 2009

By
Real Estate Agent with New Home Hunters of Fort Worth and Tarrant County

Every buyer I have ever worked with loves a good surprise.  The next forty-five days offers the "last chance" for buyers to give themselves their very own Christmas Present.

That present comes in the form of the Homestead Exemption here in the State of Texas.

Texas is very big on home ownership.  The higher the rate of home ownership, but more interested those folks are in creating beautiful yards and neighborhoods to live in.

The Homestead Exemption... the Cliff Notes version... works like this.

There are many "entities" that line up to tax each residential home.  Cities, counties, schools, libraries, water districts, local community colleges... and so forth.  Sometimes the list seems to be endless. 

Each of these entities... for the most part... sees a portion of the value of the home in question... become "not taxable" or "tax exempt... when the owners of that home qualify for, and apply for and... and then receive... their own Homestead Exemption.

When putting all of these "forgiven parts" of the value of each home together... a pretty good chunk of the assessed valuation of the home can end up "not taxable"... or "tax exempt."

Just an average estimate of the percentage of tax savings... and remember... this is just an "estimate" usually comes in at around twelve percent.  So... if the yearly real estate taxes on a home in Texas happens to be about $300 a month... or $3600 a year... if the Homestead Exemption hits in at around 12 percent... the total savings for the year could be approximately $36 dollars a month... or close to $400 a year.

In order to qualify for a Homestead Exemption in the State of Texas... it must be "owned" by the owner as of January 1, 2009.  If the owner takes title any later than that... the home does not qualify for Homestead Exempt status until January 1, 2010.

If you are in the market for a new home, and are ready to go from "Just Looking" to "Let's Get Serious"... call the DFW New Home Hotline at (817) 929-3400 today !

Posted by

Bo Hussung
Bell Title /Triserv LLC - Nashvle, TN

Karen Anne, I wish that was here in good ole TN.

Bo

Nov 15, 2008 12:36 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Bo:  Good ole TN is special... so is DFW.  Some places are just more special than others... LOL.

Nov 15, 2008 01:54 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Karen Anne,

Good information, thanks for the reminder.  Need to share this info will all past clients.

Nov 15, 2008 11:36 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Richard:  I know that most of us as Realtors know all about the Homestead Exemption.  But... and this is a big but... many new first-time buyers are not aware of the fact that the Homestead Exemption exists.  It is for those first time buyers that I wrote this and submitted it to my outside blog and Localism.  I just wanted to make sure the buying public knew what an advantage and what a money-saver this is.

Nov 16, 2008 01:04 AM
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Karen Anne, If someone is buying brand spanking new now is the time to do it.  Now for re-sales my buyer's usually get to take advantage of the prior seller's homestead exemption.  This of course doesn't work if it is a lease home or foreclosure so you are right now is the time to buy.

Nov 16, 2008 11:11 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Marchel:  Yes... I was out with a great great young couple today... and the Homestead Exemption is one of the many things we talked about.  I shared that with them... along with some ideas on the tax advantages of home ownership.

Nov 16, 2008 01:20 PM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon

I have never undstood this - until NOW - thanks - we have nothing like this in Deschutes Couty - so it has always been a mystery.  Thanks again

Nov 16, 2008 02:15 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Thesa:  Explaining things like this brings out the teacher in me.  Nine years teaching in the Catholic schools in Cleveland before going into real estate.

I wrote a much longer post about Homestead Exemptions that did a much better job explaining it than this one did.  This post was more of a quick post that I put on Localism hoping to attract some leads from a public reading.  I will try and remember to come back and insert the link to that post... in this comment.  Take care... :)

Nov 16, 2008 03:31 PM
Kevin Schamel
Coldwell Banker United Realtors - The Woodlands, TX

Thanks Karen for the reminder. I need to get the paperwork ready I got a client closing the second week of December.

Nov 19, 2008 01:13 AM
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

 

HI Karen Ann:  Your post is now featured on the Texas real estate group.  This is some great information for our Texas buyers.

Nov 19, 2008 01:16 AM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Great idea to spur buyers to close early.  Thanks!

Dec 21, 2008 06:40 AM
Kim Dean
www.GoSimplyTexas.com - McKinney, TX
Simply Texas Real Estate - Broker/Owner

Karen Anne - GREAT reminder! With only 8 days left of 2008 I think I will email my buyers from this year. Thanks for the nice "cliff notes" version too!

Dec 23, 2008 08:34 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Marchel:  Thanks for the kind words.  And thanks for featuring this in the Texas group.  Take care... and have a Great New Year !

Dec 30, 2008 09:36 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Ricki:  I have found using this information a very good tool in winning client and sphere of influence appreciation.  Take care... thanks for commenting... and have a Great New Year !

Dec 30, 2008 09:37 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Kim:  You are very welcome.  I have found this information very useful myself... and I use it near the end of the year... every year.  By the way... some time ago I stopped into your Re/MAX office and left my card... asking you to call or email me.  I had some things I wanted to go over with you.  Take care... thanks for commenting, and have a Great New Year !

Dec 30, 2008 09:39 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Kevin:  You are very welcome.  I hope this information helps you with your clients.  Thanks for commenting, and have a Great New Year !

Dec 30, 2008 09:40 AM
Julie Nelson
eXp Realty - Austin, TX
Smart real estate.

Thanks, Karen.  We prep our homestead mailing for 2008 buyers throughout the year including addressed envelopes ... it's ready to go and was mailed last week.  We'll follow up with an email this week.  Everyone needs to do this.  We also do this for buyers who bought our listings ... because their Realtor may not do it for them and they'll think we rock.

Happy new year!

Jan 05, 2009 06:31 AM
Alice Linahan
Voices Empower - Argyle, TX

I agree Karen Anne, Great Information. Thank you!!

Jun 17, 2009 04:25 PM
Jody Keating
Jody Keating Connective Realty,LLC, Bryan/College Station,TX - Bryan, TX
Broker/MM/Realtor, Bryan / College Station, TX

Karen Anne,

Really great cliff notes version. Great reminder & post, I'll need to pass this info along.

:)

Oct 23, 2009 10:47 AM