spelling @m e ll o /r o OS mello-roos now what the hell is melon rules those of you have never heard
it I'm gonna try to explain this as clearly as possible and that's a rather simple concept ready
mello-roos mello-roos is an additional tax and a property aside from the property tax you're with
me let me cut it down break it down ready here we go you got a buyer yeah you're gonna buy it once
my house - very excited you're gonna take care of them I don't find a house you'll find them a house
of course here in California everybody has to pay what property taxes you're with me and property
taxes nice and simple this is in the white house for a million dollars property taxes typically
are of course based on the value of the property you with me easy house for a million dollars your
taxes on that house your property taxes stick with me that's the key word here your property
taxes on this house would be based on the value of the house not a big deal that's what we call ad
valorem push that aside so you get your property taxes like everybody does now some communities
are brand-new some communities are brand-new or rather new we'll assume it's on five years
now maybe 10 years new and these communities may have ready mello-roos now millender's is what we
call an additional tax it's an additional special assessment so the tax on top of the tax now one
thing I would want to pay additional taxes well that's where mellitus comes in now what happens
is this when these communities when these little districts were first built these little districts
neither their own fire station their own schools write their own a roadway so of course they were
going to have of course this district this community pay for it how they pay for it as a
bond and these bonds typically last I don't know 20 years maybe 30 years some can go as long as
40 years but let's just go to the average of 20 years so these additional taxes are being paid
a year after year after year by the people who live in this little district here with me until
the 20th year and once that 20th year is here and it arrives hallelujah for example think of
an airplane right you get an airplane you're gonna travel you want to be comfortable right so you get
in the airplane you're okay you're comfortable you get people next to you your elbow room isn't the
best but you get to your destination right you get dinner or you could pay a little extra pay
the mello-roos and beware yeah first class you're with me be up front works a lot more comfortable
I already might offer you I don't know a better snacks they might offer you want to know a better
service they might offer you a better bunch of other stuff because with mello-roos don't forget
because with mello-roos you do get additional services you do get additional items like we
discussed you getting your schools new roads new police departments new fire stations all
that good stuff so that being said you have to ask yourself as a buyer are you willing to pay
that extra mello-roos to live in a district that's slightly more new and has more things
to offer now most people will say hell no I don't want to live in that it's just too much taxes you
want me to be taxed on top of taxes five minute the house I'm going to tell you that some people
are willing to pay the melrose if you put them in a more exclusive area a district that you know is
more well taken care of more modern and it's more concentrated for this particular area you with me
hope that makes sense to you so now why is this important for you as a Realtor I'll tell you why
ready here it goes that doesn't mean a buyer and the buyer shoots go find me a house for a million
bucks because the lender says they can buy a house for a million bucks because the lender said they
can afford a payment of $5,000 you with me and a house for a million bucks is $5,000 example do you
find them a house yeah the guys excited the buyers excited sake I'm so glad you found me this house
oh my god I love it the payments 5000 bucks there max the payment is 5000 bucks the max the lender
said they can buy that they are approved for but then you find out that I have some Miller rules
so that $5,000 payment now goes up to I don't know maybe $6,000 which is beyond what they can afford
are you with me so they now no longer qualify for this house because that darn Ghana Belarus tipped
the scale are you with me adding that mello-roos tip the skill to the buyer no longer can afford
this property in this location why because it has Melrose so it's important to you as a real estate
agent to make sure that when you're showing properties that you understand what Melrose
is because if this property does have Melrose that you're showing buyer may not qualify now
how do you find out about how South Melrose simple we told you before you contact your best title rep
and say hey I got an address here for you I'm gonna show it tomorrow five four three two one
Main Street can you let me know has mello-roos - all public records and if it does make your
adjustments when you're showing these houses I'm making those offers hope this helps okay have a
fantastic day there any questions are the top if you wanted to touch leave it down below have a