September 4, 2010

The Best Ways to Challenge a Property Tax Assessment

Did you know that nationally about 1/3 of the people who challenge their property taxes actually win?  It’s very possible for you to do the exact same thing.  If you have found that your home has been assessed at a value far above its current  market value then you need to seriously consider challenging the assessment.  This has a lot of positive effects none more significant than you saving money immediately on your taxes.  Since you are reading this article I’ll assume that you are either in the real estate or related industry OR you are contemplating challenging your property tax assessment and are looking for ideas to support your case.  You will find a lot of similar articles on the Internet so we will work hard to dig a little deeper and get you off to at least a good start on a winning strategy.

Tip 1 – First take a step back and analyze how far off of the real market value you think the assessment might be.  If you feel like it is 10% or more higher than what the true value of your home is then it is probably worth pursuing a challenge.  If you think it is off by less than that given your chances of winning (1/3) along with the total tax savings will most likely not be worth your time and may actually end up costing you in the end.

Tip 2 – When determining the actual market value of your property you need to find comparable homes that were sold in your surrounding community.  There are several ways you can do that including taking advantage of some online services.  One that is super easy and a quick reality check is from Realtor.com and is located here: http://www.realestate.com/homepricecheck/.  You can also contact a local realtor and get exact comps from them which is actually the ideal answer plus it’s possible that they have been in the comp homes making it easier for them to help you compare them to your house.

Tip 3 – Take a good look at the tax assessment for any errors about your home.  You would be surprised what they might have wrong.  Maybe they listed your home as having a pool and it doesn’t, or the wrong size, number of bedrooms, etc.  This is extremely common and is also an easier way to get your assessment reduced (because it’s painfully clear it should be).  This should be seen as something you HAVE to do rather than just a tip.

Tip 4 – Find out who the tax assessor is and who can help you get the assessment changed.  Be courteous and setup an appointment to visit with them in person.  Don’t suck up to them too much as they have heard every complement a thousand times.  You just want to be courteous and respectful and if you are lucky they will help you understand the best way to combat the assessment.  So when in doubt, ask.

Tip 5 – Either in person, over the phone, via email, or any other way of communication with the assessor make sure you sell the needed improvement and/or problems you are having with your home.  Yeah we have a pool but the pump is broken, the drain doesn’t work, the concrete is all cracked, etc.  Be descriptive and let them know that the house isn’t worth the current valuation they have in mind.

Tip 6 – Talk to your neighbors to see if they have any issues with their assessments and if any of them have been successful at getting their property taxes reduced.  It’s very likely that they will either be in a similar situation or will have already won an appeal or lost one.  Either way you can get some invaluable advice.  In the worst case you will either get them thinking or at least get some sympathy/empathy going.  It’s true that with property taxes misery loves company.

Tip 7 – Hire a real estate professional or attorney that focuses on fighting property taxes.  This only makes sense if you think the assessment is way off (greater than 10%) otherwise it ‘s very possible that the costs of fighting the assessment is more than the savings.  With that said, another reason to consider is that even if it costs you more this year to fight an assessment you could reap benefits for years to come making it potentially still viable.

Finally, one of the most important tips that we can give you is really more of an encouragement.  If over 1/3 of the people are successful at getting their property taxes reduced nation-wide, you really do have an excellent chance of making it happen if you get informed and stick to your guns/take a stand.

Here are some other great resources on the web that may help you:

http://www.ehow.com/how_2163949_appeal-property-tax-value.html

http://blog.valueappeal.com/categories/tips-tricks

http://www.thewisdomjournal.com/Blog/7-tips-to-lowering-your-property-tax/

http://www.mainstreet.com/article/moneyinvesting/taxes/5-tips-appealing-your-property-taxes

http://www.realestateproarticles.com/Art/16315/272/Tips-Tricks-for-Appealing-Property-Taxes.html

Thank you changeofaddress.org for sharing it.

August 26, 2010

Offering Seller Incentives in Lieu of Homebuyer Tax Credit

After the $8,000 homebuyer tax credit expired in April this year, pending sales of existing properties fell 30% in May according to the National Association of Realtors (NAR). If you are a current seller in this market, you may already feel the severe effects of the end of the federal tax credit.

If you want to sell your home, there are a number of incentives you can offer to homebuyers in lieu of the homebuyer tax credit.

 Lower your price. This seems obvious, but to really make it count, you may have to price your home low from the beginning to get multiple offers. Buyers are much more aware of the economy than they ever have been, and often, a lower price is much more appealing than any free perk. Also, buyers have access to an unlimited amount of data, and they will know if your home is priced too high.

Pay closing costs. Offer to pay a portion of the buyer’s closing costs. Under the FHA mortgage program, sellers can provide credits up to 3% of the sale price (previously 6% but was changed to 3% in April 2010) to off-set closing costs. Sellers cannot, however, directly pay any portion of the buyer’s down payment.

Update the interior. Offer to install new carpet, use a fresh coat of paint, and replace light fixtures. Include appliances. Many new homeowners don’t own a refrigerator, stove, dishwasher or microwave. Including appliances that are already in the home is very enticing to many homebuyers.

Another option for sellers is to hold off . Depending on your situation this may be the right option.

Most importantly, be patient. Statistics show that on average, it takes 21 showings to sell a home. However, offering incentives in lieu of the homebuyer tax credit, which caused a surge in home purchases over the past 18 months, is one way to help you sell your home faster.

If you have any questions about our ability to serve you do not hesitate to contact us. You can reach us by clicking here.

August 19, 2010

6 Common Home Buyer Mistakes to Avoid

You’ve determined that you’re ready to buy a home. You’ve saved enough for a down payment, you’ve been searching for properties, and you’re ready to make your dream a reality. Buying a home is an exciting process; however, if you’re not careful, it can turn into a nightmare. Here are 6 common home buyer mistakes to avoid.

1. Not Budgeting Properly

It’s easy to overestimate what you can afford. Although owning a home may be a better investment than renting, it’s not necessarily going to be cheaper. Take a good look at your income and expenses for a few months before determining what you can comfortably afford. Make a budget sheet using Microsoft Excel or any other budgeting software. List all your income as well as every single expense, including food, gifts, and even haircuts. Keep in mind any emergency expenses as well.

When budgeting, don’t forget about hidden costs including closing costs, homeowner’s insurance, property taxes, HOA fees, and décor and furniture to fill your new home.

2. Neglecting your Credit Report Prior to Getting Approved

Your credit score can be either helpful or detrimental to your loan process. Getting a full credit report from all three credit reporting agencies – Experian, Equifax, and TransUnion – before applying for your home loan will not only let you know how credit-worthy you are, it can lead you to possible reporting errors. One study found that as many as 25 percent of credit reports have damaging errors.

3. Not Getting Pre-approved for a Home Loan before Searching

Most sellers prefer bids from prospective buyers who are already pre-approved for a home loan. Being pre-qualified and pre-approved are different. Pre-qualification is usually the unofficial process of informing a lender of your credit status, income, and debt. The lender can usually give you a ballpark figure of what type of loan they may offer. Pre-qualification is based on your word alone and doesn’t hold much weight with sellers.

Pre-approval is the verification of the information you provided to the lender. This process will give you a better idea of how much the bank will loan you. Getting pre-approved can get you a step ahead other potential bidders that have no pre-approval.

4. Skipping the Home Inspection

You love that old fixer-upper, but skipping the home inspection can cost you as much in repairs as the cost of the home itself. The home inspection should include the overall foundation and structural features of the house, the roof, walls, plumbing, the presence of mold, pest infestations, heating, air conditioning, appliances, and the electrical system. Also, ensure that your inspector is certified with the American Society of Home Inspectors.

5. Picking the wrong neighborhood

You’ve found a home you love, but do you know what happens in the neighborhood after dark? Do you know the crime rate? What is the traffic like during rush hour? How is the school district?

Knock on your potential neighbors’ doors, and don’t be afraid to ask questions. Call the school principal, or talk to parents who are waiting to pick up their kids after school. Read the local newspaper to learn more about the community. There are many real estate blogs and community websites on the internet so before buying the home, check out the neighborhood.

6. Using a Bad Real Estate Agent or No Agent

You want a real estate agent who understands your needs and limitations and will work for you and look out for your interests. Get references from friends, family, co-workers, and neighbors. Consider interviewing a few different agents to find out about their activity and experience in your area.

It’s definitely possible to buy a home without the help of a professional real estate agent, but realtors have access to all the homes on the market through the multiple listing service (MLS). Unless you are in the real estate business yourself, you’ll likely not have any access to the MLS in your area. Real estate agents spend their time sifting through listings, making appointments to show homes, meeting with inspectors, and helping you create a comparative market analysis to determine proper pricing.

The real estate agent you choose could be the greatest asset or biggest obstacle to finding your dream home. We are here to help. Just click here to contact us.

July 28, 2010

Sell Your Home using Home Staging

Many buyers make a decision about a home within 15 seconds of walking through the front door. To make a great first impression, many homeowners are turning to Home Staging. Home Staging is the process of setting the scene throughout your home to create immediate buyer interest.

Benefits of Home Staging

Donna Dazzo, a New York-based home stager, pointed out that staging moves up sell dates and adds more money to sellers’ pockets. She noted a recent study performed by The Real Estate Staging Association, which showed that after they’d been on the market for quite some time, occupied homes that were staged sold on average within six days, while unoccupied homes sold within 28 days after staging. “Home staging results in a higher price, all other things being equal,” she said, adding that the money that clients invest in staging usually results in a 350-percent return on investment in terms of getting a number closer to their sale price. “An investment in staging will always be less than the first price reduction,” she said.

Clean Up and Remove All Clutter

Potential buyers don’t want to see how you live. They want to picture themselves living in your home. When cleaning for home staging, you should plan to clean your home better than you ever have before. Clean every surface including windows (inside and out) and window sills, ledges, door knobs, ceiling fans, shelves, mini blinds, ceiling and floor corners, and baseboards. Remove all tile grout with bleach. Caulk areas around sinks and bathtubs. If the job seems overwhelming, consider hiring a maid service or cleaning crew. The benefits of home staging will be worth the cost.

Get your carpets professionally cleaned. If you have pets, this is absolutely necessary. Even if you don’t, professionally cleaned carpets are far more appealing than worn out, stained ones.

When considering purchasing your home, people will open your cupboards and closets. Make sure they’re organized neatly. Every storage area in your home should be neat, clean, organized, and clutter-free.

To Decorate or Not to Decorate

You need to show your home at its best potential to buyers. Lori Matzke, Professional Home Stager and Founder of “Center Stage Home” states, “Keep in mind that what you are selling is the house, not its contents. . . If you remove throw or area rugs, eliminate clutter and collections, and cut down on furniture and accessories, the room will appear to be more airy and spacious. . . It’s all about flow.”

Make your home look as spacious as possible. Rearrange furniture so it is conducive to a smooth traffic flow. Store away any excess furniture and knick knacks. Take down your wedding photos, religious items, school pictures, and collection of refrigerator art.

Consider replacing the towels in your bathrooms and kitchen with a couple of fresh new ones. Remove all personal items from countertops, and place a plant on the bathroom vanity. Remove all dirty laundry from sight. Add a centerpiece to your dining room table if you don’t already have one. Take a close look at your houseplants. If they are dying or unsightly, remove them or replace them. Place plants in clean, attractive containers. Add a fresh, non-offensive fragrance to your home using potpourri, scented oils, or scented wax (as candle smoke can stain walls) such as cinnamon or vanilla. Many agents are even advising homeowners to bake a fresh batch of cookies if they know they will be showing their home. A fresh coat of paint in a neutral color will also go a long way.

Your front porch is the first thing people see. If you have any dead or tattered planters, replace them with fresh ones. Keep all planters watered and trimmed. Keep your porch clean and inviting. Replace your front door handle if necessary, and put a stylish wreath on the door.

Ms. Dazzo states, “Even though people’s clutter is a turn-off to potential buyers, the opposite problem – a vacant home – is one that really keeps houses on the market longer. If there is nothing left in the house, buyers sense desperation and begin trying to whittle down prices, and as the listing gets more stale, the house becomes even harder to sell. . . If it doesn’t have furniture, people notice cracks in the walls, scuffs in the floor.”

Home Staging can be a project you can do yourself, but if you want to invest in a professional Home Stager, the benefits are often worth the cost.

For more information please do not hesitate to contact us.

June 24, 2010

Gov. Crist signs massive condo bill today

Gov. Charlie Crist traveled to South Florida today to ceremonially sign this year’s massive condo bill, SB 1196. The bill, among other things, exempts some elevators from code requirements, revises voting laws for condo associations, and makes changes to loss assessment coverage.

Crist officially signed the bill into law June 1.

About SB 1196

At the beginning of this year’s session of the Florida Legislature, at least 50 bills addressed condo issues – everything from fire sprinkler retrofits to enticing investors in an effort to move excess condo inventory. At the end, a single 103-page bill encompassed many of the reforms: SB 1196 by Sen. Mike Fasano (R- New Port Richey).

The new law includes Florida Realtors-supported “bulk buyer” language that seeks to reduce inventory levels by encouraging investors to purchase blocks of condo units. It’s accomplished, in part, by protecting bulk buyers from some of the liabilities faced by condo developers.

Other provisions in SB 1196

• Lowers the cost of condo-ownership by repealing a requirement that owners purchase individual unit owner insurance coverage.

• Removes the requirement for mandatory retrofits of sprinkler systems in condos over 75 feet high.

• Requires lenders to pay more in past-due assessments on foreclosed properties.

• Allows associations to deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association.

• Allows associations to divert rent paid by a tenant and use it to pay delinquent assessments owed by that unit’s owner.

© 2010 Florida Realtors®

June 10, 2010

Energy Tax Credits: Beware False Promises

Not all home improvements qualify for federal energy tax credits, no matter how compelling a sales pitch sounds.

Utility savings plus a federal energy tax credit can equal a smart financial investment, not to mention a more comfortable home. But don’t rush into anything based on the guarantees of a contractor. Do your homework to ensure the energy-efficiency upgrade will deliver the promised savings on your tax bill and your energy bills.

Here is a great article on this hot topic: http://www.houselogic.com/articles/energy-tax-credits-beware-false-promises/

We will be more than happy to help you with any questions you may have. Please do not hesitate to contact us.

May 27, 2010

5 Tips for Buying a Foreclosure

May 20, 2010

Economists: Improved housing market but timing uncertain

Two top housing economists forecast some encouraging but tempered predictions for the housing market over the next few years during an economic session at the National Association of Realtors® Midyear Legislative Meetings & Expo today.

Lawrence Yun, NAR chief economist, and Mark Zandi, chief economist and co-founder of Moody’s Economy.com, agreed that job creation is key to an economic and housing recovery, with job creation expected as the year progresses. But they differed somewhat on the impact that foreclosures will have on home price stabilization. Both project that mortgage interest rates will remain historically low, the availability of jumbo loans will improve, and home sales will rise over the next few years.

On the effect of the homebuyer tax credit, Yun said that the broader view would assert that the credit added 1 million buyers, reduced housing inventory by 1 million, and in turn, reduced the supply of housing by two to two-and-a-half months.

“This corresponded with a positive home price impact of 5 to 8 percent percentage points,” Yun said. “Stabilizing home prices will limit future foreclosures. But those with a dimmer view would say that billions of dollars were wasted on people who would have bought anyway.”

Yun expects a slightly stronger demand for housing and a fairly even level of foreclosures entering the inventory pipeline before easing in 2011. “We expect distressed home sales to account for 30 to 40 percent of transactions for the remainder of this year,” he said.

Zandi also forecasts improving demand for housing, but with foreclosures rising later in 2010 before easing in 2011. He said home prices may weaken this year. “The housing crash is over – nearly. We are now near the bottom,” he said. “There will be no real price growth in 2010 or 2011. Whether home prices weaken is unclear, but it will take two more years to work off excess housing inventory at the current sales pace. Of course, if demand picks up, it would take less time for prices to rise.”

With improved market fundamentals and rising consumer confidence, Yun thinks home prices could rise 2 to 3 percent this year; but within the next two to three years, he suggests there could be stronger upward pressure on prices from a potential housing shortage because housing construction has fallen significantly below long-term demand.

Zandi said that the Fed won’t raise interest rates until the unemployment rate is heading south, but that deficit spending is the greatest threat to the U.S. economy. “The debt-to-GDP (gross domestic product) ratio is extremely high and troubling, meaning we could have measurably higher interest rates in 2011 and 2012.”

© 2010 Florida Realtors®

May 13, 2010

The Price of a Home

                                                                                                                                                                               

 There is this home that is valued at $285K on Zillow. Zillow makes no claim that the home prices they list are accurate.  In fact they call them Zestimates and they say that they use a proprietary formula and that the number is not an accurate home valuation.  Proprietary  means secret and  they don’t show their math and could be using a dart board. 

The same home that is valued at $285K on Zillow is valued at $183K by the county tax assessor. They don’t show their math either and, who knows, they might be using a dart board, too, to come up with values. 

That very same home was listed in our MLS for $205K, and an appraiser came up with a value of $199K for it and it actually sold for 196K. At one point, a different appraiser using software only, and probably a dart board, came up with a value of $123K. Wow!!!

Pricing real estate is difficult. To date no one has invented software or a even a proprietary system that can replicate the kind of fuzzy logic that is needed for an accurate appraisal.  The standard practice used by appraisers is to find three comparable properties in the immediate area that have been sold in the last year. Comparable properties are rarely exactly the same as the subject property and so the appraiser makes some adjustments. 

It is important to know what the source is for data.  Just because you saw it on the internet doesn’t mean that it is accurate. However, we at the RE/MAX Premier Group can always show you our math. We can always show you our numbers and show you our math. And we don’t even own a dart board.

If you are interested in getting an accurate price analysis of your home, fill out this form.

May 6, 2010

Florida CFO Alex Sink: Prepare now for oil spill losses

We hope  you are not going to have to deal with this, but we would like to share this valuable information with all of our Floridian friends… just in case…

TALLAHASSEE, Fla. – May 6, 2010 – Florida CFO Alex Sink outlined precautionary steps businesses should take if planning to claim damages resulting from the Deepwater Horizon oil spill.

“Empty restaurants, empty rental properties or empty stores resulting from this oil spill are the direct responsibly of BP, and that’s exactly who should pay for it,” says CFO Sink. “It is crucial that our small business owners keep meticulous records about their losses so that BP claims can be expedited.”

CFO Sink suggested the following items:

  • First: Make detailed records of cancelled reservations. News reports suggest that many condominium owners, hotels and restaurants are already seeing increased cancellations. “It’s important that when these cancellations occur, the cancelling party is questioned whether the cause is because of the oil spill,” says Sink. “If the answer is ‘yes,’ keep a record of the person’s name, contact information and revenues lost as a result of the cancellation.”
  • Second: Calculate estimated losses for a six-week period and keep all records, sales receipts and documentation to support the claim. A good idea would be to compare business now to a five-year average of revenues between May and June, which can offer insight as to the damages incurred.
  • Third: Make a detailed list of assets – including non-structural – and include appropriate records to support the list. Damage does not always have to be direct. If a hotel or restaurant is within walking distance of the beach and the oil hits that beach, it damages the business’ assets even without physical damage to the structure. “It’s important to record this depreciation,” Sink says.
  • Fourth: Be wary of insurance settlement scams. If starting to file a claim, make sure you deal with authorized representatives of BP and not scam artists; and be careful not to sign waivers of liability too quickly without legal and financial counsel.

In all circumstances, Sink says, affected businesses should file a claim with British Petroleum (BP Oil) via the hotline number – (800) 440-0858.

Additional guidance to help small businesses survive a disaster can be found at www.MyFloridaCFO.com or by calling (850) 413-3089 or toll-free at (877) MY-FL- CFO (1-877-693-5236).

“I’ve activated my consumer helpline to assist Florida business owners with questions about how this spill will impact their businesses,” says Sink. “Florida businesses can take steps now to help expedite delivering their claim to BP, as well as help themselves be ready to take advantage of federal and state aid that may become available for recovery.”

© 2010 Florida Realtors®