Don't Be Caught off Guard by a Major Cost When Selling Your Home

When you are preparing to sell your home, we will sit down with you and go over a couple of different things. One of those things is an estimate of proceeds. We will break down all the different costs you can expect as a seller. One fee that comes as a huge surprise is the property tax proration. 

The tax proration surprises sellers for a couple of different reasons. First of all, it is one of the largest expenses that affects your bottom line when selling. The other thing sellers say is, “Why do I need to pay this? I am already up-to-date with my property taxes.” 

In Iowa, property taxes are a little complicated. Iowa property taxes run on a fiscal year system instead of a calendar year. In addition to that, we pay property taxes in arrears, which means after the fact. That creates a whole other layer of complication. 

"Iowa pays property taxes in arrears, which makes the process more complicated."

You have probably received your property tax bill this month. If so, you will notice that you can pay those taxes in two installments. One is due in September of 2016 and the other is due in March of 2017. That property tax bill is actually for the fiscal year of 2015. In other words, you will pay property taxes for the fiscal year of July 1, 2015 through December 31, 2015 in the September 2016 installment. You will then pay for January 1, 2016 through June 30, 206 in the March 2017 installment. 

When we do an estimate of proceeds, we use one year of property taxes as an estimate. Depending on the month you close on your property, you will have anywhere from 10 to 14 months you are crediting. 

Remember, you will have to pay the tax proration whether you work with a Realtor or not. Selling your home on your own does not get you out of this. The tax proration is simply a byproduct of the fact that we pay property taxes in arrears in Iowa. 

However, you should work with a real estate professional when selling your home in order to successfully navigate situations like this one. If you have any questions about the cost of selling your home or about real estate in general, give me a call or send me an email. I would be happy to help you!

How to Avoid the Potentially Deadly Threat of Radon Gas

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Have you ever heard of radon? The name might ring a bell, but many homeowners don't know how common it is in homes throughout Central Iowa.

Radon is a gas in the soil that comes from a breakdown of uranium. It's a radioactive gas that can cause cancer if exposed to for a prolonged period of time. Unfortunately, Iowa is the number one state in the country for radon concentration. In fact, all 99 counties in Iowa are in the high-risk category!

If you get a test and find out that there are high radon levels in your home, what does that mean? Well, the EPA has established the level of 4.0 as the point at which action should be taken. If your home has a radon level of 4.0 or greater, you need to get radon mitigation, which is a venting system that is installed to lower radon levels. It's a simple pipe that only takes four hours to install and will protect the home from dangerous levels of the gas.

Ameriserv is a company that started six years ago that focuses on the testing and mitigating of radon. They have seven radon measurement specialists and four mitigation specialists, and are a state-certified company that aims to protect Iowans from toxic levels of radon. We have a special relationship with Ameriserv that allows for a special discount for people that work with us, making an already affordable service even cheaper!

Radon can be a potential problem for a home, as it poses many health risks, but it is a very easy problem to solve! If you would like to get in touch with Ameriserv, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to assist you in any way we can!