Who Qualifies for Mortgage Forgiveness?
By · CommentsWith more and more short sales in my inventory of listings, I’ve realized that one important question most homeowners have is how the short sale will impact their income tax. When a lender cancels debt, it is considered taxable income to the borrower . This income is reported to the IRS by the lender on Form 1099-C . Read More→
FAQ for Scottsdale Arizona Property Taxes
By · Comments
Affecting residential real estate in the cities of Scottsdale, Phoenix and Paradise Valley – Maricopa County
Arizona Property Taxes can be very confusing for three main reasons: 1. Arizona property taxes are not levied on the market value of a home but on the assessed value of a home, 2. There are numerous unfamiliar terms in the property tax statements and valuations, and, 3. Property Taxes are billed and due in arrears. Review the flow chart and read the FAQ you should get a more clear understanding.
How are property taxes computed?
The burning question everyone has is naturally related to their property taxes and how much they will be. Here is the formula:
Full Cash Value x Assessment Ratio = Assessed Value x Tax Rate = Annual Property Tax
The general tax rate is about 1.3% of Full Cash Value. For example: A home with a Full Cash Value of $500,000 will in general have property taxes of approximately $6500.
$500,000 x 10% = $50,000 x 13% = $6,500 which is the same as 1.3% of Full Cash Value
What is the primary tax rate?
Tax rates vary by city and sometimes subdivision. In general, one can expect to pay about 1.3% of the Full Cash Value as determined by the tax assessor. The tax rates are set in August of each year and taxes are billed in September. You can review the all the 2008 tax rates here. You may look up an address or a parcel number here to see the current property taxes.
What is the meaning of “Full Cash Value” ?
Full Cash Value is the current market value of the land and any improvements as estimated by the County Tax Assessor using computerized standard appraisal methods. This value is used to calculate secondary taxes for budget overrides, voter approved bonds and limited purpose districts. The Full Cash Value has nothing to do with the sales price of a home but the sales prices are used to determine the Full Cash Value.
What is the meaning of “Limited Property Value”?
Limited Property Value is determined by the State Legislature using a mathematical formula that limits the annual increases. The Limited Property Value is the basis for computing the primary taxes used to provide operational expenses for the state, county, cities and schools shown on your tax statement. The Limited Value cannot be greater than the Full Cash Value.
Overview Chart of Arizona’s Property Tax System
What is the “Assessed Value”?
Your property tax is not computed on the Full Cash Value but on the Assessed Value of a property.
How is the "Assessed Value" determined?
The Assessed Value of each property is determined by multiplying the Full Cash Value by the assessment ratio. Residential homes are assessed at 10% and Vacant Land is assessed at 16%.
What is the "Assessment Ratio"?
The assessment ratio is a percentage based on the property use. It is applied to the Full Cash Value to determine the assessed value and is set by the State Legislature. The assessment ratio for an owner occupied residential property is 10%. For example, if you have an owner occupied residential property with a Full Cash Value of $500,000, the property tax will be based on the assessed value of $50,000 .
When you purchase a property mid year – who pays the property tax?
When you purchase a home mid year, the property taxes will not have been paid (the first property tax bill is not due until October). Property taxes are prorated to the close of escrow so the Settlement Statement will show a Seller credit to the Buyer for property taxes for the part of the year prior to close of escrow. This means that the new buyer will be responsible for the entire year’s property taxes when they come due.
When are Property Taxes Billed and Due?
Maricopa County property taxes are confusing because they are billed in September of the year for which they apply. The first tax payment is due Oct 1 and is delinquent on Nov 1. The second tax payment is due March 1 of the following year and is delinquent on May 1. If you fail to pay the first half tax in October but you pay in full by December 31 of that year, then you will not be assessed any interest.
Are there any property tax exemptions?
Yes there are tax exemptions for widows, widowers and totally disabled persons subject to conditions and limitations. Read the Arizona statute. If you want to file for this exemption, download this form.
Is Senior assistance available?
Yes, if one owner is at least 65, you may apply to freeze the Full Cash Value of your primary residence. You must have had this property as a primary residence for at least two years prior to application and your income (from all sources and averaging for previous 3 years) cannot exceed $30,576 for a single owner or $38,220 for two or more owners. Download application.
In addition, the Elderly Assistance Fund, established in 2007 is available to reduce the property tax of qualified elderly taxpayers. More info here
What is meant by “Real Property”:
Real Property includes land, buildings and other improvements on the property (i.e., swimming pools).
What does “Legal Class” mean?
The Legal Class is determined by the property type or use (i.e., owner occupied residential, residential rental, commercial, vacant land, multi-use).
What are "Special Districts"?
Special districts have a limited purpose such as flood control, fire or irrigation.
Metro Phoenix Weekend Freeway Closures for Dec 5-8
By · CommentsBe prepared before you head out to do your Holiday shopping – Check out the freeway closures as itwill be a busy pre-holiday weekend. Closures are located on:
- Route 51 (Piestewa Freeway) between Thunderbird and Shea Blvd
- Loop 101 – between Route 51 and Tatum Blvd
- Westbound 60 – between Rural Rd and Mill Ave
- Northbound Loop 101 – between Cactus and Thunderbird
[tags]phoenix metro,freeway closure,[tags]
Just in – as provided to me by Linda Smith of Eagle Pro Mortgage.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Thanksgiving 2008 – Musings
By · CommentsIt’s been an enjoyable weekend with lots of cooking, eating and visiting with family. The only real estate appointment I had was a home inspection yesterday but other than that, it’s been a lot of hanging out and doing nothin. Thanksgiving is my favorite holiday because there is no stress except the timing of the turkey and making the gravy at the last minute. And that stress is so worth the end result of the traditional Thanksgiving feast – and we do it all from the turkey to the pumpkin pie.
Kind of corny but after we finished our dinner, we all shared the different things we were thankful for. The funny thing is that once you get started it is hard to stop. As we slowed down, Lauren pulled out a printed email she had received and read it to us. I had heard it before but I still laughed so hard. Enjoy!
A young man named Victor received a parrot as a gift.
The parrot had a bad attitude and an even worse vocabulary. Every word out of the bird’s mouth was rude, obnoxious and laced with profanity.
Victor tried and tried to change the bird’s attitude by consistently saying only polite words, playing soft music and anything else he could think of to "clean up" the bird’s vocabulary.
Finally, Victor was fed up and he yelled at the parrot.The parrot yelled back.Victor shook the parrot and the parrot got angrier and even ruder. Victor, in desperation, threw up his hand, grabbed the bird and put him in the freezer.
For a few minutes the parrot squawked and kicked and screamed. Then suddenly there was total quiet. Not a peep was heard for over a minute.
Fearing that he’d hurt the parrot, Victor quickly opened the door to the freezer.
The parrot calmly stepped out onto Victor’s outstretched arms and said "I believe I may have offended you with my rude language and actions. I’m sincerely remorseful for my inappropriate transgressions and I fully intend to do everything I can to correct my rude and unforgivable behavior."
Victor was stunned at the change in the bird’s attitude.
As he was about to ask the parrot what had made such a dramatic change in his behavior,the bird continued, "May I ask what the turkey did?"
GE Recalls Wall Ovens Because of Fire Hazard
By · CommentsGE has issued a recall for wall ovens under the brand name of GE®, GE Profile™, Monogram® and Kenmore®. Apparently, there have been 28 incidents of property damage caused by the intense heat of the self-clean cycle when improperly installed. Click here for details of the GE Oven recall. This recall was issued Nov 18, 2008.
Paradise Valley Luxury Tour – Arizona Luxury Statistics
By · Comments
Paradise Valley Luxury Tour meets every other week, and is one of the best realtor home tours in the valley for several reasons:
1. There are always a huge number of agents who go on tour and they actually take the time to give constructive feedback on the listings.
2. Outstanding agents attend and it provides an opportunity for us to network and share with one another.
On November 21, we toured 10 homes ranging in price from $2,495,000 to $6,950,000. My favorite home is a spec home, listed for 
$5,750,000 (just reduced from $6,498,500). This home is 11,585 square feet on a 80,776 square foot lot on Casa Blanca Drive in Paradise Valley. Click here to view the MLS listing including all 50 photos.
One of my pet peeves is what I call the “luxury tract home”. The “luxury tract home” syndrome is caused by spec home builders who found a design formula that worked and never deviated from it. This means that many homes I view, look just like 5 others I saw in the last week, which of course is at odds with the whole concept of a luxury home. If one is going to purchase a luxury home, then typically, one expects that it should be unique in every way. Who wants a cookie cutter luxury home or an extra large “tract home” with granite?
Why was this home on Casa Blanca one my favorite? This builder dared to put some personality into the home. It is very large, very palatial and yet pretty livable. Actually, I don’t think the photos do it justice. It is much prettier with the crisp accent of Arizona sunlight. I love detail and I notice everything. This home was built with a very high standard of craftsmanship from the dome ceiling murals to the pavers on the driveway. And – I love all the Spanish tile. It is truly a home with a unique and classic touch. Call Melissa at 480.621.4044 if you’d like more information about luxury homes or broker representation to tour this home or other luxury homes in Paradise Valley.
The Scottsdale Rattlesnake Story: In Our House!
By · CommentsOh my gosh – what an experience it was! A Western Diamondback 
rattlesnake was in my house and we miraculously escaped harm. Here’s the story.
Yesterday, after showing property, I went to pick up Quintana, my granddaughter, for a sleepover. We met Robert at Harkins Shea 14 Theater to watch the “Beverly Hills Chihuahua”. Quin is almost 3 and about half way through the movie she said ” I want to go to your house because this movie is a little bit scary”. So we left. Robert went to get “The Little Mermaid” at Blockbuster and Quin and I drove home and went immediately to the sand box in our courtyard. As the sun set, I scooped her up and we went to the shower to wash off all the sand. Robert came home and we watched the movie and ate pizza.
The house was dark when the movie ended and it was time for Quin to go to bed. I got up and went in to prepare her bed. As I walked into the hall the underside of my heel brushed against something. 
Immediately I heard a rattle. I screamed, turned on the light, and saw a rattlesnake who had slithered about 3 feet away and coiled up underneath the bar stool. He was rattling his tail like crazy. Robert told me to take Quin and go into the bedroom – which we did.
Robert then went out to the garage, got a garbage can and a long hook, extracted the demon and threw him down the ravine across the street. While this was going on, the sound of the rattles reverberated through our house. I have never heard such a loud and scary noise.
Apparently, I had left the screen door open after I carried Quin in to the shower. I never leave doors open!! We’ve lived in this house 8 years and have only seen 2 rattlesnakes and the one night I leave a screen door open and have my precious granddaughter with me, a rattlesnake comes into our home. HOW DARE HE!!
I didn’t sleep very well last night. I woke up numerous times and every time the crazy thoughts encroached upon my consciousness. What if Quin had been walking with me? What if I had stepped on the snake? What if the snake had hid until a later time?
We had the hebejebes!
After Robert captured the snake and he was in the garbage can, Quin and I came out to inspect but he was still so noisy. Robert went through our house thoroughly, looking under every bed, in every closet, and in every nook and cranny, to make sure that there were no more snakes in our house.
Robert took a video but it’s too dark – all you can hear is the sound of the rattle. And of course, I had to research the darned snake. Our unwanted visitor was a Western
Diamondback rattlesnake, which is not only the largest rattlesnake in the west, but is responsible for more bites and deaths to humans than any other rattlesnake species in U.S. Want more info about these native neighbors? YIKES!
Farmers Market Coming To Downtown Scottsdale
By · CommentsWhen we used to live in San Luis Obispo, California, our local Thursday night Farmer’s Market was famous. We lived there from 1982 to 1993 and it was just something everyone did on Thursday night. Not only did we get the best vegetables and strawberries, but we built a sense of community.
I know that San Luis Obispo was a much smaller city than Scottsdale but it is always a good thing to have events that build a sense of place and belonging. Scottsdale is fortunate to now have two farmer’s markets. I’ll see you there.
Bring Your Kids, Bring Your Dogs, Bring Your Friends.
Starting Nov 1, 2008, the new location for the Old Town Farmer’s Market will be the city parking lot at the southwest corner of Brown and 1st Streets. Saturday from 8:30 AM until 2:00 PM.
A new market is coming to Downtown Scottsdale called “Craftsman Court Go Green Street Market”. This market will feature local growers artisan food producers and local crafts and local green businesses. The Green market will be located on Craftsman Court starting at 5th Avenue. Starting January 18, 2009 – Sundays from 10 AM to 2 PM.
Click on the blue placemarks to see the location of both markets.
If you want more information about farmer’s markets in the Metro Phoenix area, visit www.arizonafarmersmarkets.com. There are currently markets in Scottsdale, Carefree, Phoenix, Mesa, Ahwatukee, Glendale, and Surprise.
Market Surprises in Phoenix Real Estate
By · CommentsPhoenix Will Rise Again!
Came into the office today and Eric Chambers, one of my top real estate agents told me that the offer he placed for a buyer had not only been declined but that the Seller had accepted another offer that was over list price! Wow – wish I knew the details. Did they ask for closing costs? The home had been on the market 4 days.
There are definitely smart people out there buying.
Last night my husband and I watched a PBS short documentary from our Tivo cache titled: “Making Sense of Place: Phoenix, the Urban Desert.” It was fascinating and ensightful about the history of growth in Phoenix and of the future growth as well. One of the ending comments was:
“This land of possibility and growth, this Valley of the Sun, is a place where many more people will choose to pursue the American dream.”
.