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Netter Real Estate Inc
Richard Bocchieri, Netter Real Estate IncPhone: (631) 848-0748
Email: [email protected]
Property Tax Abatement

by Richard Bocchieri 03/11/2019

Every industry has its specific vocabulary. Real estate is no exception. If you are new to the home-buying market, you may find yourself stumped by the abbreviations, lingo, acronyms, and unfamiliar jargon commonly used in real estate sales materials, online listings, contracts, and the like. Do not be confused. Learn the terms so you can read that paperwork with ease. Abatement is a real estate term with which you need to become familiar.

Abatement

In standard legal terms, abatement means the removal or diminishment of something. In residential real estate, this term usually refers to property tax in the form of a property tax abatement. Since property taxes become ongoing annual homeowner expenses even after you entirely pay off a mortgage, being able to access a property tax abatement is an asset. For example, if a municipality such as a city, county, state, or other property-tax entity offers you a tax reduction, it could reduce the monthly housing costs by up to five percent during the period of abatement.

Property tax abatement programs can make it easier to qualify for a larger mortgage by reducing your income/debt to housing cost ratio. Also, while the reduction is effective, it adds value to your home when you're ready to put it on the market. 

Certain tax abatements are for one-time improvements to an existing property. These could be for upgrades such as:

- Converting non-residential buildings to residential use
- Installing environmentally friendly additions
- Renovations that increase property value

Typically, these improvements must conform to the requirements, and follow building codes and permitting processes. If you've planned to purchase a home for renovation purposes, make sure that your agent knows so that you get advice on any reductions in effect for the houses you consider.

Along with state or local abatements, there are some federal tax incentives for restoration and preservation of homes designated as historical or with public value. Other abatements may be for qualified newly constructed homes.

Some municipalities have property tax abatements that are effective for several years. Most often these are in place to attract buyers to redeveloping neighborhoods or areas that are under renewal, in the process of revitalization, or are in lower demand. The specific qualification requirements for tax abatements differ, so be sure to talk with your agent about access to potential abatements when house-hunting.

Asbestos and Lead-Paint

Other uses for the term abatement relating to real estate include some expenses associated with buying an older property or a property's repurposing from commercial to residential. For example, when purchasing a home built prior to 1978, any renovations or improvements might need to conform to lead paint abatement requirements. A potential abatement cost is for asbestos removal. Before the 1970s, asbestos featured regularly as insulation in ducts and pipes, concrete exterior siding, floor tiles, as vermiculite attic insulation, in wall or ceiling acoustical tiles. The Environmental Protection Agency oversees asbestos removal, so if you plan to make changes to a property older than the 70s, your realtor can help you navigate all the requirements of asbestos abatement and may recommend qualified professional asbestos removal contractors. Certain older homes might be eligible for asbestos or lead paint removal grants. 

Your agent can help you determine for which programs the home you are considering buying might qualify. Be sure to ask them about both tax abatements and asbestos or lead paint abatement grant programs.

About the Author

Author
Richard Bocchieri
Welcome to Long Island Living at its best! The South Shore of Suffolk County is a suburban area that runs along the shoreline of the Atlantic Ocean. Homes in this area consist of primarily residential properties. This area tends to be diverse in culture and income as it varies by hamlet, village or town. Residents along the South Shore have access to many beaches, parks and recreational activities. I pride myself on my honesty, integrity, hard work and personal service. My first career was in education, starting as a teacher then finishing as a guidance counselor and achieving my Master’s and two PD's. In 1986, I began my real estate career. In a sense, I am still an educator and offering guidance; this time I am outside of the classroom educating my clients on the selling and purchasing processes; which have become so complicated recently and guiding them safely through the confusing and ever-changing real estate market. It is very satisfying to me to help people with not only the greatest financial asset in their lives but their greatest emotional asset; where they celebrate holidays, raise their families and live their lives. I take the needs of my clients very seriously and as a result, I am proud to say, over 90% of my sales are the result of referrals and recommendations. Primarily, my areas of service are the Townships of Babylon and Islip on Long Island’s beautiful South Shore, near pristine beaches and wonderful boating, yet only 55 minutes from Manhattan; truly the best of both worlds. I'm a graduate of the Real Estate Institute and am certified as a Senior Real Estate Specialist. I also hold a license as a Notary Public. Please feel free to call or visit so I can help you fulfill your real estate dreams. I am a Full Service Licensed Real Estate Associate Broker and provide the following: Free appraisal Rental Mortgages International relocation services Sales Home warranty New homes Free school report Water front specialist Notary public Please feel free to call or visit so I can help you fulfill your real estate dreams. Click Here for a few of my current Listings: http://tours.tourfactory.com/results.asp?u=114062&p=1 Click here to see all of my success stories in 2017: Click Here for a Free E-Guide: Millennials and Homeownership Click Here To See My 5-Star Reviews on Zillow: Testimonials Click Here for the 2019 Winter Buyer Guides & Tips - Complimentary Click Here for the 2019 Winter Seller Guides & Tips-Complimentary