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<h3>Get more home for your money by examing Special Assessments for Temecula Valley CA Real Estate</h3>
 
An often overlooked and critical factor when buying Real Estate in Temecula CA and Riverside County is the individual property special assessment taxes. Although many people think of Mello Roos taxes, the often do not realize the significant financial impact of a slightly different category called Special Assessments. In a nutshell these are additional taxes that builders begin passing on to buyers during the fast moving market over the last 5 years. These taxes encapsulate special bonds for things like the local schools and roads which builders used to consider a normal expense for building new communities. 
 
When the Real Estate frenzy was happening the builders learned that instead of paying these bonds they could instead pass them on to the buyers in the form of a higher total tax rate. Where a tax rate base would start around 1.08% they added fixed annual taxes that would bring the tax rate up to 1.7% to 2.2%. So while people liked the prices of the homes and saw them as competitive they often didn\'t realize just how much more expensive their payment would be. 
 
Here is an example of a smart home buyer considering homes with an eye on special assessments. In this example a buyer is looking at a brand new (builder) home in Murrieta CA for $310,000 with a 20% down ($62,000) and a tax rate of 1.9%. The home also has an association fee of $50 per month. 
 
The loan need is 80% of the purchase price for a total of $248,000 at a 6% interest rate. The payment would be $1,486.89 per month. With a property tax of 1.9% the annual tax bill would be $5890 or $490.83 a month. So adding everything up the total monthly payment would be $1486 (loan) + $490.83 (taxes) + $50 association equals $2027.72. This doesn\'t include the hard cost of putting in a backyard landscaping, window coverings, painting, patio cover, etc. 
 
Now let’s consider a resale home in Temecula or Murrieta for $330,000. The home is 2 years old with a great backyard and patio cover and with a 1.38% tax rate plus the same $50 association fee. The 20% down payment would be $66,000 making the new loan $264,000 at 6% with a monthly payment of $1582.81.Due to the lower tax rate the annual tax bill would be $4554 or $379.50 a month.The total monthly payment is $1582.81 + $379.50 + $50 = $2,012.31 or $15.41 less a month. 
 
In this example, you get $20,000 more home ($330,000 instead of $310,000) plus the home has a backyard, window coverings, and patio cover already put in. You may also get many other benefits such as a bigger home, better lot or preferred community. Often it is only $20,000-$30,000 that separates a good home from a great home! Plus you can still negotiate and maybe split closing costs with the seller to save even more money. Lastly, your monthly payment is paying down over $100 more towards your debt versus additional property taxes. 
 
As you can see, a moment of consideration can mean quite a bit when discussing Special Assessments for Temecula, Murrieta, Menifee, & Wildomar. This is especially true for new homes in southern CA which often have property taxes pegged at 1.9%. There are certain neighborhoods in all of these areas that have very low property taxes compared to others. That is where good representation by an agent can really help you with getting a better house and a much better long term investment. 
 
When you are considering a new home purchase in Temecula, Murrieta, Menifee or Wildomar please get a real estate professional involved before you even walk in the door. You won\'t lose any money by cutting yourself off from representation. In fact you are more likely to gain financially by working a better deal or finding a much better alternative. Good agents know the local builders and are aware of the best values which may offer increased buyer incentives as well. 
 
If a builder is trying to avoid an agent being involved, then there is often something wrong. In fact, most builders are paying extra for agents because they are having a hard time finding qualified buyers and also moving inventory with such high tax rates. There are some great deals out there with many builders that your agent can guide you to. They can also provide you a realistic comparison of other opportunities so you get the best long-term value and satisfaction from your new home purchase. 
Author Info
 
Stefan West is a professional and experienced <a href=\"http://www.stefanwest.com\">Temecula California Real Estate Broker</> specializing in Riverside and San Diego counties. These areas include Temecula, Murrieta, Wildomar, Menifee and North San Diego County communties of Oceanside, Carlsbad, Vista, and Escondido. 
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