Should you appeal your assessed property value?

With falling home prices, many new homeowners are finding their homes assessed at a value higher than what they paid, which directly relates to the amount of property taxes they are liable for. In these cases, it is worthwhile to apeal your assessment which may lead to your property taxes being lowered.

Georgia law requires the Board of Assessors mail assessment notices to taxpayers when property values change. When you receive your assessment notice, the first thing you should ask yourself is what is the fair market value of my property? Fair market value is the price that a willing buyer would pay and a willing seller would accept for a property in an open market sale. If your appraised value is more than you reasonably could expect to sell your property for, then you should consider filing an appeal.

A CHECK LIST FOR PROPERTY OWNERS FILING AN APPEAL

1. Check the values of similar houses in your neighborhood.
2. If you still wish to appeal, you must do so in writing within 45 days of the date of your assessment.
3. When your appeal is received, The Fulton County Board of
   Assessors (BOA) makes its review and either agrees with your value or
   establishes a new one.
4. If you are not satisfied with the BOA's decision, you
   may choose Arbitration or a Board of Equalization (BOE) hearing. The BOE is a
   panel of three county tax payers appointed by the Fulton County Grand Jury to
   resolve disputes over property valuation. There is no cost if the BOE is chosen.
5. Your final option is to appeal the case to the Fulton County Superior Court.

HOW TO MAKE YOUR APPEAL MORE EFFECTIVE

To make your appeal before the Board of Assessors, the Board of Equalization or through arbitration more effective, you can improve your case with documentation. Here's how to do it.

1. Request a copy of your Property Record Review Document in person from the
   Assessors' office, or send a self- addressed, stamped envelope to the Fulton County Board of Assessors, Suite 1056,141 Pryor Street, S. W., Atlanta, Georgia 30303-3445. This free, one page document will describe the essential features of your residential property.Review it for accuracy. You may request any other residential property record for fifty cents.
2. Obtain a market analysis of comparable properties recently sold in your neighborhood. As your local real estate expert, I am happy to provide this to you at no charge.
3. Establish property value by providing a recent property appraisal. This is a good option
   for individuals who have recently purchased or refinanced a home.
4. Review the Street Index and Sales Books for comparable properties. You should look for
   properties in your neighborhood with the same quality or construction; similar land size and square feet of living area; number of Bedrooms, basement size, etc. The Street index and Sales Book are located in the downtown Government Center, North and South Fulton Service Centers.

Homestead Exemption

A homestead exemption is a reduction in homeowners' property taxes. To qualify, you must own and occupy the home as your legal residence and primary domicile on January 1 of the year in which the exemption is being claimed (so all you people who bought a home in 2008, even if it was on December 31, 2008, this applies to you). Homeowners must apply for this exemption on or before the deadline required by their county (see links below). Once granted, this exemption is automatically renewed each year as long as they continually occupy the home under the same ownership. The home must be your legal residence for all purposes including the registration of your vehicles and the filing of your income tax.

You cannot file for homestead exemption on rental property, vacant land or on more than one property. In addition to basic homestead exemption there are additional exemptions for residents age 62 and older and/or disabled and disabled veterans. You must apply for these exemptions in person. If you are adding or deleting a person's name on a deed, you must re-file for homestead. Refinancing your home will not affect your exemption.

Fulton County / City of Atlanta: due March 1st***

DeKalb County: due March 1st***

Gwinnett County: due April 1st

Cobb County: due April 1st

***if you live in the part of City of Atlanta which is also in DeKalb, you must file in both Fulton and DeKalb Counties***

Cost vs. Value: Remodeling Projects that Pay

Remodeling magazine’s 2008 "Cost vs. Value Report," done in cooperation with REALTOR® Magazine, has just been released. If you have been on the fence about whether to tackle that kitchen remodel or bathroom addition, be sure to check this out! The report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market. Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

Top 10 Project Paybacks

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%) ***
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%) ***
4. Upscale foam-backed vinyl (80.4%) ***
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%) ***
7. Midrange wood window replacement (77.7%) ***
8. Midrange vinyl window replacement (77.2%) ***
9. Upscale wood window replacement (76.5%) ***
10. Midrange major kitchen remodel (76.0%)

On the local front, Atlanta homeowners can see even better returns!

Additions (midrange/upscale)

Bathroom - 66.1% / 68.9%
Deck (composite) - 75.9% / 65.9%
Deck (wood) -
83.9%
Garage - 70.1% / 66.8%
Master Suite - 71.4% / 65.3%

Remodels (midrange/upscale)

Basement - 78.1%
Bathroom - 75.5% / 72.2%
Kitchen (major) - 79.1% / 73.3%
Kitchen (minor) - 79.9%

Replacements (midrange/upscale)

Roofing - 72.5% / 69.2%
Vinyl Siding - 82.6% / 84% ***
Fiber Cement Siding - --/ 91% ***
Vinyl Window - 79.4% / 82.4% ***
Wood Window - 78.9% / 77.5% ***

*** A quick note on these items. In older homes, particularly in Atlanta's intown neighborhoods where the historic character of the homes are highly valued and sought after, I would NEVER recommend replacing the original doors and windows if you can help it. If they must be replaced, make sure to use high-quality solid wood options that mimic the original detailing as closely as possible. Similarly, while vinyl siding is inexpensive and very low-maintenance, it will actually DECREASE your home's value in these areas. If siding must be replaced, fiber cement siding (often called Hardi Plank) is only marginally more expensive than vinyl but it gives the appearance of traditional wood siding. In more suburban areas where the homes have been built in the last 20 years you will start to see a greater return for using vinyl windows & siding, but in most cases in metro Atlanta it is always smarter to go with wood.


Why Renovation Pays

Why are renovations holding their value better than home prices today? "When housing slows down, people stay put and renovate their house to make it more livable," says Paul Zuch, president of Capital Improvements, a designing, building, and remodeling company in Dallas. And by renovating before they sell, home owners get to enjoy the new space themselves, not just make the home more appealing to buyers. "It just makes sense," says Zuch.

Recent renovations also make buyers’ lives easier. "Home owners who remodel their home are providing a service to future buyers," says Eileen Nelis, a broker at Savvy and Co. in Charlotte, N.C. "When buyers purchase, they don’t want to do all that painting and remodeling, and they don’t want that price tag. They may be willing to make improvements down the line, but when they purchase, they want to open the door and have everything complete. It reduces their stress."

Making home improvements can also reduce sellers’ stress by heading off that time-honored negotiating technique—pecking away at the sales price by pointing out imperfections. "If sellers have done some improvements and dressed up their property, the improvements will help sell it," says Bernard Fallon, broker at Fallon Associates Realty in Rochester, N.Y. "If sellers don’t want to improve their property, buyers will tick off the repairs and try to take them off the price."

That doesn’t mean that every home owner should do every renovation, even in a more stable real estate market. Take Tulsa, Okla., where median home prices actually edged up slightly more than 2 percent in 2008, according to NAR. REALTORS® in Tulsa reported that, of the 30 remodeling projects surveyed, only 16 netted home owners at least 80 percent of the cost.

"Not every neighborhood will support the additional work," says Jim Hemphill, a sales associate at Coldwell Banker Select in Tulsa, "but in older, more established neighborhoods, if you redo a kitchen or bathroom or add a master bath or bedroom, you’ll get your money out."

Despite the value, the weak economy is likely to slow seller spending on remodeling, at least in the short term, predicts the most recent Leading Indicator of Remodeling Activity computed by the Joint Center for Housing Studies at Harvard University.

The LIRA for the third quarter of this year estimated that owners’ spending on home improvements will decline at an annual rate of 12 percent by the second quarter of 2009, continuing a two-year downward trend. Spending is unlikely to recover until the housing market turns around, according to the Center.

Yet, despite declines in overall remodeling dollars spent and a still shaky housing market, "people’s homes are still one of their best, most solid investments," notes Zuch. "Even though the markets have gone through some adjustments, it’s still smart to invest in your home."

Financial Housekeeping Tips for the end-of-the-year

December can be one of the busiest times of the year. Between decorating for the holidays, shopping for the kids, traveling to see the relatives and enjoying the festivities, this month can fly by like no other. Taking just a few minutes to make sure your financial house is in order before the year wraps up is time very well spent. Here are a few simple suggestions to help you prioritize your financial housekeeping over the next few weeks:

1. Review your Benefits. If your company holds "open enrollment" for benefits at this time of year, make sure you review all of the options available--as opposed to simply taking on the same choices as last year. This is especially important, if your spouse also receives benefits through an employer. That's because your situation or benefits may have changed over the year, and it may make more sense for you to switch coverage from one spouse's plan to the other's. And make sure that you take full advantage of pre-tax spending accounts, such as the ability to pay daycare and medical in pre-tax dollars! Pre-tax spending accounts are use-it or lose-it plans and many companies end their benefit plan year on December 31. Be sure to check with your plan provider.
   
2. Asset Allocation. Year-end is an ideal time to open up your 401k statement to examine how your individual funds have performed. We all know that the financial markets have been up and down quite a bit over the past couple of months, so don't be too surprised if your accounts aren't progressing the way you might have hoped. But rather than get discouraged or simply ignore your accounts, take the time now to meet with your financial advisor and discuss if you should re-allocate from the better performing sectors back to the under-performers. This concept is called "asset allocation" and has been around for several decades. Its value cannot be overstated. Most financial planners believe that proper asset allocation can be one of the most important factors in your overall return. So take this year-end opportunity to review your plans with your financial planner to see what, if any, adjustments you should make.
   
3. Automate your New Years Resolution. Many people make financial resolutions to save more or pay down debt. In today's economy, it's a safe bet more consumers than ever will be making those kinds of resolutions. The good news is that with online banking, it's never been easier to keep that resolution. Simply hop online to your financial institution's website. Chances are, with a few clicks of the mouse, you can establish an automated savings account that allows you to send a certain amount of money to a savings account on a regular basis. Most online banking websites also allow you to easily set up automatic payments to a loan or credit card. Automating your financial decisions dramatically increases the likelihood that you will follow through on your plan
   
4. Ask Santa for a Budgeting Program. These days, we all seem to be on some kind of a budget. The problem is, most of us have trouble calculating where we're spending too much or even where all the money goes each month. That's where a budgeting program can come in handy... and this holiday season may be the best time to ask for one. Granted, opening a copy of Money or Quicken for your holiday present is probably not what you dreamed about as a child, but these types of budgeting and household finance programs may be the best gift you will receive this year. With a couple of hours work, you can download your various balances and accounts directly into these programs, and set them up to automatically update on a daily or weekly basis. Once you have a few months of transactions in these programs, they can quickly provide you a summary of what your real budget actually looks like. The results may surprise you!
   
5. Analyze your Debt. Make sure you know what rates you are paying on all your outstanding debts. If you have trouble figuring this information out, just give me a call or send me an email. I can help you determine what rates are being paid and if your current overall debt structure makes sense. Working together, we may be able to make changes that will put more money in your wallet or help you achieve other important financial goals.
   
6. Give. December is prime time for giving to charities, for both tax reasons as well as holiday spirit. For example, Toys for Tots is a great program that helps deliver toys to children for the holidays. Or, you can give to a local food shelf or soup kitchen that helps prepare meals for those who would not otherwise enjoy the holidays. Giving will put a glow in your heart this holiday season...and a glow in your wallet come mid-April.

By following these suggestions, you'll be better prepared for a happy New Year in 2009! If you have any questions about specific steps or need some help, please call or email any time. Have a great holiday season!

10 Real Estate Myths Debunked

RISMEDIA, Oct. 29, 2008-

With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it’s no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines.

TIP: If you’re selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says.

TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year — much less than historical average returns for the stock market. Not true, especially with how the stock market is currently performing. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%.

TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market.

TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It’s conceivable that taxpayers may have to cover some losses. It’s also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up.

TIP: Uncle Sam is “bailing out” homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed’s activities influence mortgage rates but don’t directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range.

TIP: Today’s rates don’t look bad compared to the 10% we saw in the early ’90s and 17% in the ’80s.

7. It’s the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation.

TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It’s the right time for everyone to buy. Not neccessarily. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one’s interest, Yun adds.

TIP: Take a good hard look at your financial status and create a homeowner’s budget to see if you’re ready to buy a home.

9. It’s a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck.

TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional.

TIP: You don’t have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.