Millage Rates Affect Buying Power for Frantic House Buyers in a Good Way

What can a home buyer do when looking for a house and there doesn’t seem to be anything for sale? This is when it’s time to think outside of the box and remember that millage rates affect buying power.

But first, here are the stats…

And, unfortunately for the buyers, the number of new listings available in the Philadelphia area and surrounding suburbs of Bucks, Montgomery, Delaware and Chester remains at a shortage. 

This graph below shows all the single family detached homes offered for sale in the last year, by month, contrasted with the median days on market.

As you can see we are still suffering from a shortage of inventory.  We have even less houses available now than we did same time last year.

Here’s a solution for the Home Buyers

I realize there isn’t a lot out there to choose from and it can be tough to compromise on a location. 

But, instead of looking at this like a compromise, what if we choose to see that there are more options out there?

Suppose you are looking in a specific area and it’s so challenging to find that perfect home that is meant for your offer to be accepted…….maybe try a different location?

How will you know which location is a reasonable substitute? 

Did you know that millage rates affect buying power?

Here’s how:

Look at the millage rates for each township.

The millage rates determine the amount of real estate taxes for each property.

And your real estate taxes will affect your monthly mortgage payment. 

The lower the millage rate > the lower the taxes > the lower your payment. 

Here are the current total millage rates for each county:

Montgomery 

Bucks

Delaware

Chester

Philadelphia (scroll down to Real Estate Tax)

Where does your “ideal location” fall on the chart?  

Now, do you see another municipality that has a similar rate…. or bonus…slightly lower?

Two Tips:

1 – Be sure that you are looking at the Total Millage Rate.

2 – When comparing millage rates be sure to stay within the same county because each county assesses differently.

Download our free House Hunting Checklist.

These are the items that the appraiser is looking at very closely… and you should too!

Still not sure about this whole millage thing? I am happy to answer questions anytime.

“A new home is not about a new roof & new walls. It marks the beginning of a new journey of life and the creation of new memories.”

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