Texas Homestead Exemption

What is the Texas Homestead Exemption? How does it benefit you?

Texas Homestead Exemption --

The Texas Homestead Exemption, in addition to providing legal protection regarding your home, will also save you money on your property tax bill. This homestead exemption reduces taxes by lowering a home's taxable value. In addition, all school districts offer a $5000 homestead exemption. Some districts taxing units offer a percentage exemption of up to 20% of a home's assessed value. This means that homeowners can lower their property taxes by applying for these exemptions for which they are eligible.

Here's the thing - You must actually OWN your own home and occupy it as your principal residence by January 1, 2007. You can have only ONE principal residence and ONE homestead exemption.

Here is the link for the form needed in order to apply and be eligible:

http://www.window.state.tx.us/taxinfo/taxforms/50-114.pdf

If you are in the market to purchase a home before the 1st of the year then you couldn't have picked a better time. First of all, because the market is a bit slower during the "off" season, sellers are a little more willing to negotiate on price. Second, the typical transaction from start to finish (including the home search) takes anywhere from 30-60 days. This means that if you have a strong and knowledgeble real estate professional (like us) then you can get your search done, negotiations done, and the closing done -- all before the 1st.

Dustin...