Homestead Exemption & Save Our Homes Portability Explained: A Sarasota Buyer's Guide

0:00Welcome back to my Real Estate Podcast with David Libertor. I'm your host, and today we're diving into something that I know a lot of people in Florida are curious about, but maybe don't fully understand, homestead exemptions and save our homes portability.

0:16David, thanks so much for being here. Hey, thanks for having me. I'm really excited to talk about this, because it's one of those topics that can save people a ton of money, but a lot of folks don't realize what they're missing out on.

0:28So let's break it down. Okay, so let's start with the basics. What exactly is a homestead exemption? I mean, I've heard the term thrown around, but I want to make sure we're on the same page here.

0:38Great question. So a homestead exemption is basically a property tax break that Florida gives to homeowners who live in their home as their primary residence.

0:48When you apply for it, you get an exemption on a portion of your home's assessed value, which means you pay less in property taxes. It's a pretty significant benefit, especially over time.

0:59Oh, wow. So it's not something that happens automatically. You actually have to apply for it. Exactly.

1:06That's the thing. A lot of people don't realize they need to file an application. You have to go through your county property appraiser's office and submit the paperwork.

1:14And here's where it gets interesting. Once you get that exemption, you also get something called save our homes, or SOH, portability.

1:24This is a cap on how much your property taxes can increase year to year. Okay, now that's fascinating. So you're saying there's actually a limit on how much your taxes can go up?

1:34Right. So with save our homes, your property's assessed value for tax purposes can only increase by 3% per year, or the statewide average increase in home values, whichever is lower.

1:46So if your home's actual market value skyrockets, your taxable value grows much more slowly. It's a huge protection against tax shock. That's incredible.

1:55So you mentioned portability. What does that actually mean? Can you move that benefit to a new home? Yes, that's the portability part.

2:03And it's one of my favorite things about Florida's tax system. If you sell your home and buy a new one in Florida, you can transfer some of that save our homes benefit to your new property.

2:15Basically, you can take that accumulated assessed value cap with you. There are some rules and limits, but it's a really valuable benefit for people who are moving within the state.

2:25So for someone in Sarasota who's thinking about buying a new home, this could actually make a huge difference in their decision-making process, right?

2:34Absolutely. If you already own a home in Sarasota and you're looking to upgrade or move to a different property, understanding how portability works is crucial.

2:46You could be saving thousands of dollars over the years. And if you're a first-time buyer, getting that homestead exemption locked in right away is something you don't want to delay on.

2:56This is so valuable, David. I think a lot of people just don't know about these benefits and they're leaving money on the table. Thanks so much for breaking this down in a way that actually makes sense.

3:08My pleasure. It's honestly one of the best parts of buying property in Florida. And I'm always happy to help people understand how to take advantage of it.