Abate-What?

by BlueWater Realty of Pine Island, Inc 08/25/2019

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

BlueWater Realty of Pine Island, Inc

Phil Gilles Direct: 239-425-5423 Email: [email protected] Donna Gilles Direct: 239-425-5426 Email: [email protected] Donna and Phil Gilles are two of the most respected Pine Island Florida Real Estate Agents. Their dependability, honesty and integrity are truly a "cut above” in the real estate profession. Having vacationed in Southwest Florida for several years and owning on Pine Island for eleven years, Donna and Phil could no longer resist the magnetism of Pine Island and moved to the island in 1998. Donna and Phil started BlueWater Realty of Pine Island on September 11, 2002, realizing Pine Island was in need of a real estate family that was a step above the mass marketers that dominate the real estate profession. Donna and Phil are both members of the Realtor Association of Fort Myers and the Beach, the Florida Association of Realtors, the National Association of Realtors, the Multiple Listing Service, and the Pine Island Chamber of Commerce. Donna and Phil’s in depth real estate training include investment management, brokerage, marketing high-end homes, real estate law, ethics and practice. Both Donna and Phil achieved the Graduate Realtor Institute designation in 2006. If your immediate future requires counseling in the purchase or sale of real estate, please contact Donna or Phil. They are professionals who will work hard for you to help achieve your real estate goals. The professional GRI (Graduate Realtor® Institute) designated real estate team at BlueWater Realty of Pine Island specializes in assisting prospective Pine Island residents in locating and purchasing their "piece of paradise” in Bokeelia, Pineland, St. James City and Matlacha. BlueWater Realty of Pine Island also provides a "no hassle, no cost” listing service for customers who wish to sell their Pine Island properties. Let the team at BlueWater Realty of Pine Island provide you with the best professional assistance available when selling or buying Pine Island real estate. Contact us at 239-283-7500 for more details. Pine Island, Florida is a short distance from Cape Coral and Fort Myers, Florida, however, our lifestyles and quality of life are worlds apart. Our four-way stop at Pine Island Center is an invitation to turn north toward Bokeelia and Pineland or south to St. James City. Whichever direction you turn, you will experience an atmosphere that exists in few Florida communities. Instead of high rises, asphalt and concrete, you will find low density development with the accent being on preservation and nature – not development. Residents of Pine Island revel in the extraordinary wildlife that inhabits our island, including sea birds of all varieties and colors, manatees, dolphin and other wildlife of all species. Pine Island offers some of the best fishing and boating in Florida. Boat to a secluded beach on Cayo Costa or island hop to the many eateries offering abundant seafood varieties. Fishing opportunities are endless. Inshore fisheries include snook, redfish, trout and world-class tarpon fishing, which has made our waters famous. Offshore fishing for grouper and snapper are excellent with many natural and artificial reefs. There is no better time than right now to purchase your "piece of paradise” on Pine Island. Interest rates are near an all-time low and prices are approximately 40% lower than they were just five years ago. The GRI (Graduate Realtor® Institute) designated Realtors® at BlueWater Realty of Pine Island can make a difference. When you see the letters GRI after an agent’s name, you can count on receiving the knowledge and guidance to ensure a smooth real estate transaction. In short, you can count on getting the best service available from a real estate professional. We want to be your Pine Island Realtor®. Call 239-283-7500 today. When it comes to finding a peaceful community in southwest Florida, Pine Island stands out as a leading place to find a second home, vacation spot or quiet place to retire to after long days in the Florida sun. Although Pine Island is actually the largest island on the Gulf Coast, it is a casual and laid-back place and the perfect spot for secondary homes. If you ever decide Pine Island is the right place for you, you have four beautiful neighborhoods to choose from. Whether you are looking for a gorgeous beachfront home, or a location inland, you will find everything you are looking for and more on this island, including a close-knit community, still active during the day before letting the night drift in and close down the island. Getting to and from the island is simple and the island itself is only an hour away from the Southwest Florida International Airport. Better yet, because the economy of Pine Island thrives on local fishing, it is a great spot for anglers to spend the day fishing or newcomers to begin fishing and develop a new passion. The island is also the ideal spot for relaxing activities like kayaking, hiking, and boating, among others. Visitors and residents alike will quickly find the island is a quiet community where the nightlife dies down by the end of the evening. You will be able to have fun without having to worry about noisy visitors keeping you up all night. Rest and relaxation comes at a premium these days, but Pine Island affords residents the opportunity to comfortably enjoy life. The residents here are just as diverse as the activities you can take part in. Artists, musicians, business professionals, retired attorneys, teachers and snowbirds all call Pine Island home. Even raising a family provides you an opportunity to raise children in a diverse environment with culture and life thriving around them. Still, this tiny part of Florida brings something unique to Pine Island livinganyone who visits it. As Pine Island was described in an article in Coastal Living Magazine, "A slice of Old Florida ‘country’ still thrives on this lush, green isle.” These are just a few of the perks of living on Pine Island. We hope to continually update our blog with community news, real estate updates and information regarding Southwest Florida and Pine Island, as well