Sticking to a budget? Tips for affordable and easy home upgrades

September 2, 2010 by Matthew Le Baron  
Filed under Sellers

Living on a budget is the norm, rather than the exception, in the current economy.  Whether you’re trying to entice potential homebuyers or just want to give your living space a quick spruce up, here are a few tips for making a big impact in the look of your home without breaking the bank:

  • Start small.  Small improvements – like a fresh coat of paint or an attractive new floor – truly update a home because people’s eyes tend to notice surface areas first.  Experts agree that these upgrades make all the difference to prospective buyers as well. According to the International Association of Home Stagers, investing in small upgrades can increase a home’s value as much as 7 percent – and a new floor has been proven to return nearly twice the value for every dollar spent.
  • Shop around.  From mattresses and dining room sets to LCD televisions and sofas, you might be surprised to find the home decor items on your shopping list at budget-friendly spots like thrift stores, boutiques and warehouse clubs.

    For example, quality flooring is available at Sam’s Club.  Traditional Living laminate flooring combines low-maintenance and authentic good looks with the outstanding value pricing for which Sam’s Club is known.  Its glueless click installation makes Traditional Living flooring an ideal weekend do-it-yourself project – saving additional money on installation.  The superior protective surface provides durability and scratch-resistance to stand up to years of heavy foot traffic from kids and pets.

    “More consumers are on the hunt for retail locations that offer premium home products at bargain prices,” says Sherrie Towne, assistant marketing manager of SimpleSolutions, LLC, which distributes Traditional Living.  “For example, the cost of a Sam’s Club membership plus the cost of Traditional Living laminate floors is approximately 30 percent less than the price of premium laminate purchased at another retailer.”

  • Accessorize, accessorize, accessorize.  If a new sofa or coffee table isn’t in the budget, infuse a room with energy and color by adding simple finishing touches like pillows, artwork and rugs.  Flea markets, estate auctions and garage sales are unexpected sources of one-of-a-kind – and often inexpensive – accessories that add color and personality.  In the bathroom or kitchen, swap out existing hardware on cabinets and drawers to quickly create a more up-to-date look.
  • Clear the clutter. Piles of papers, toys and books can detract attention from the unique items that make a house a home.  If your space – and your budget – is tight, organize everyday items with furniture that pulls double duty such as a storage ottoman or a bookshelf with built-in compartments.  And if you’re putting your home on the market, professional home stagers suggest removing one-third of furniture from public areas like living and family rooms to create the illusion of extra space.

For more information on the Traditional Living collection, visit www.traditionalliving.com

source:  ARAcontent

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Seller financing – an option that requires careful review

August 30, 2010 by Matthew Le Baron  
Filed under Sellers

Real estate prices today are historically low because there are far fewer buyers than sellers.  Foreclosures continue to flood the market with bargains.  But people seeking to buy real estate during a severe recession often are unable to qualify for financing even though interest rates are enticingly low.

In such times, seller financing can be used to obtain a premium purchase price.  Not only are the underwriting process and financing fees and costs avoided, but the seller often will finance a much higher percentage of the purchase price than would a typical mortgage lender. If and when interest rates increase, sellers can benefit by providing seller financing at a lower rate.

Seller financing has become something of a lost art.  Following is a brief review of major issues that should be resolved carefully and that typically require the assistance of a real estate attorney.

Before even offering seller financing, the first question is whether state and federal consumer-protection laws are applicable.

If in any one year a seller will engage in multiple sales of dwelling units to owner-occupants, then multiple consumer protection laws are likely to apply.  The Truth in Lending Act, the Real Estate Settlement Procedures Act and the recently signed Consumer Protection Act are a few.

The CPA is much broader in its application and its restrictions as compared to older consumer-protection laws like TILA and RESPA. To be exempt from the CPA:

Seller financing for owner-occupied dwellings cannot exceed three transactions in any 12-month period;

The seller cannot have participated in the construction of the dwelling;

The financing must be fixed rate for at least five years and be fully amortizing;

The seller must determine in good faith that the buyer can repay the loan;

The financing must be subject to reasonable annual and lifetime limitations on interest-rate increases; and

The financing must meet any other criteria the new federal consumer-protection agency may prescribe.

These consumer-protection laws are complicated.  The CPA in particular requires significant legal work to determine exemption. Accordingly, qualified legal counsel should be consulted by any seller interested in financing the purchase of a dwelling unit intended to be a buyer’s residence.

Seller financing is simpler for commercial real estate, but many issues exist nevertheless.

First, the seller must decide what percentage of the purchase price to finance.  The higher the percentage financed, the higher the purchase price obtainable and the higher risk of buyer default.  The seller must find a comfortable balance between these competing factors.  Requiring the buyer to have enough skin in the game is an important consideration.

The type of seller financing instrument should depend on the percentage of financing.  If little or no down payment is required, then an installment purchase contract probably will be most appropriate.

A lease-with-purchase option should be avoided because under Oregon law it will almost certainly be treated by the courts as a disguised mortgage far less favorable to the seller than virtually any other seller financing instrument.

A buyer who pays a large down payment should insist on a trust deed as the financing instrument.  This provides better protection for the buyer in the event of a default.  Mortgages are rarely used as a financing instrument in Oregon because they are so favorable to the buyer.

If most of the price is paid via third-party financing and the seller is being asked to carry a second trust deed, then the seller must consider the risks of junior financing.  These risks may include violation of a prohibition on junior financing in the senior financing instrument that could trigger a foreclosure.

Ideally the seller would obtain not only written consent from the senior lender but also notice and cure rights.  Otherwise the seller can protect only its junior interest by coming up with the money to fully pay the senior lender if the latter is foreclosing.

At a minimum, the seller needs evidence from the buyer of the monthly payments to the senior lender to minimize the risk of a senior loan foreclosure.

Seller financing often is very difficult if the seller has existing financing on the property.  This is because the existing financing almost certainly will have a clause stating the financing is due and payable upon any sale of the property.

The lease-with-purchase option is often used as a means to avoid such a due-on-sale clause, but successfully doing so is tricky and should not be attempted without the assistance of qualified legal counsel.

When there is underlying financing, the buyer must be careful to assure application of buyer payments to the underlying seller loan, to avoid paying twice for the property.  Sellers have been known to disappear with all of a buyer’s payments in such circumstances.

Even if there is no underlying financing, the buyer needs assurance that the documents will be available once the purchase price is paid to clear the title to the property.  Sellers often can be difficult to find when the time comes to clear the title – particularly if an individual seller has died without a probate proceeding.  The best protection is to place all title-clearing documents in escrow at the outset to be recorded automatically upon full payment.

Finally, the seller must consider the tax consequences of any seller financing.  A qualified tax adviser should be consulted to determine and avoid any adverse consequences of seller financing.

Source:  IBR

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Prices Holding Up Well Despite Everything

August 28, 2010 by Matthew Le Baron  
Filed under Sellers

One of the remarkable things about home sales today is the strength we’re seeing in the national median price. For July it was $182,600, up almost a percentage point from a year ago. That’s about what inflation is right now, according to the Consumer Price Index. When you consider the slowdown in sales volume now that the home buyer tax credit is ended, the resiliency in pricing is a bright spot.

NAR Chief Economist Lawrence Yun at his monthly press conference in Washington yesterday attributed that resiliency to the equilibrium of prices to household income (including mortgage-payment to income) and the drop in new-home construction.

In his analysis, homes are priced at a level that matches closely with households’ ability to pay. Thats’ a reasonable place for prices to be right now, all things considered, and he thinks any big swings up or down are unlikely in the next few months, even if home sales continue to struggle and inventories stay high.

Of course, if inventories stay high well into the fourth quarter, then home prices could once again come under pressure.

So, prices are aligned with the economy and interest rates remain historically low (4.42 percent on average). What’s missing is consumer confidence, and that appears to be dependant in part on evidence that jobs are growing.

Watch Yun’s press conference in the player above.

By Robert Freedman, senior editor, REALTOR® Magazine

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Clean Homes Show Better–Five Areas To Scrub to Make Yours Sparkle

August 11, 2010 by Matthew Le Baron  
Filed under Sellers

I just had to share a great post written by Phoebe Chongchua which discusses how important a clean home is

So, here’s a question for you.  Would you rather walk into a clean home or a dirty one?  No, it’s not a trick question but it is an important one.  You see, when it comes to selling a home, many people forget how important the answer to that question really is.  Sellers get busy looking for their new home, preparing the kids for a move, packing up their belongings, getting organized for their new life and relocation so much that sometimes their home that’s for sale doesn’t get the TLC that’s needed to push it to the top of the buyers’ must-have list.

It’s not until the home sits on the market for long periods that sellers realize something has to change.  Sometimes it’s the marketing, sometimes it’s the price, and sometimes it’s the fact that the home that’s being shown isn’t clean enough.  Yes, a clean home shows better and there are five ways to make yours sparkle from roof to baseboards.

Hard to Reach Windows/Skylights.  These often get overlooked either because they’re difficult to access to clean or because they aren’t right at eye level.  Whichever the case, cleaning windows in high ceilings or skylights provides a brighter light to shine in your home.  Sometimes just getting out the cloud of dust and dirt that accumulates can make a difference between a murky-looking room and one that is eye-catching.  And here’s a tip from Buzzle.com, “Clean the windows on a cloudy day, but not a rainy one. If you clean the windows in the direct light of the sun, traces can appear on the window, as the cleaning solution gets dry before being cleaned.”

Baseboards and Walls.  I have written about giving your home a fresh coat of paint prior to putting it on the market.  But maybe you can get away with a good wipe-down instead.  Using a wet, mildly soapy cloth you can scrub the baseboards and walls to make them look like they’ve had a fresh coat of paint, if the paint isn’t chipped or too worn.  However, a product called Mr. Clean’s Magic Erasers will save you the mess and ease the elbow grease.  These rectangle-shaped cleaning pads help take the grime off nearly everything.  You don’t have to spray anything on the surface you’re going to clean; just wet the eraser and wipe off the marks.  I’ve done whole walls with these pads and made it look as though the wall had been freshly painted.  Be sure to get the baseboards and get down to kids’ level and wipe off the marks where they place their fingers while walking down the hall or up the stairs.  When buyers see homes that are scoffed and worn like that, they may think it’s an indication that the home might not have gotten the care it needed for the bigger things too—such as furnace, disposal, plumbing, electrical wiring, etc. It gives a general feeling of un-cleanliness and can leave a negative lasting impression.

Toilets.  It may seem like this goes without saying but I’m sure any real estate agent you ask will have a horror story about toilets. Whether they’re leaking, continuously running, stained, or simply stinky, they pose a major deterrent.  If you’ve got an older toilet, give it a good inspection and be sure to check under the lid.  Buyers sometimes use your toilet when they’re looking at your home and nothing is worse than seeing rust stains and other unsightly marks.  A good product is Zep Toilet Bowl Cleaner.

Tile.  When you’re showing your house, hopefully, you’ll get lots of foot traffic.  This, however, can lead to very dirty flooring and grout. Yes, you can supply those footies and the sign placed by the door asking buyers to remove their shoes or put the footies on before entering your home, but, the truth is, not all will comply.  Still, the tile and the condition of the grout will matter to buyers should they decide to make an offer.  There are certainly many products to get the dirt out of those tiny grout lines; one that I’ve had success with is called Heavy Duty Acidic Cleaner for tile.  Use a brush to really scrub those dirty lines; doing so will make the tile standout and not look like it needs re-grouting.

Closets, Cabinets, Computer areas.  “Buyers love to snoop and will open closet and cabinet doors.  That’s according to About.com Guide, Elizabeth Weintraub.  She writes about the need to de-clutter closets, hang shirts all facing the same way, and even alphabetize the spice cabinet.  Wow!  Love it!  I realize you may feel you don’t have time for all of that.  Still, the point is, don’t have junk stuffed inside closets and cabinets so that when potential buyers open them to have a peek, everything comes crashing down on them–and gives the impression that the closets are too small.  Computer areas are becoming more popular in homes and behind most of those computers is a tangled web of wires collecting tons of dust.

Organize the wires using Velcro zip-ties and dust them off!   Or, better yet, if you don’t have to use the computer daily, arrange the area like you were filming a movie or shooting an advertisement—you never see wires.  Remove all of the computer and accessory electronic cords.  You can leave the monitor display on the desk but taking away the wires and storing them will give the area a more spacious, clean, and professionally staged look.  A little cleaning and preparation before you market your home will help show buyers that you’ve cared for the house and that could be just the signal a buyer needs to make an offer.

 

Source:  realtytimes.com

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Home improvement ideas to avoid

August 5, 2010 by Matthew Le Baron  
Filed under Sellers

One of the first things people recommend when asked how to increase the value of a home is to renovate, add features, or upgrade the features.  While this is good general advice you still need to be careful–some home improvements could actually end up costing you more than they are worth.  You see, when it comes time to sell, those improvements may do nothing to increase the value of the property and may even turn off potential homebuyers.

Over-the-Top Might Push You Over the Edge

Not all renovations will raise the value of your home.  Bigger is not always better, and sometimes less IS more.  Unless your home is located in Beverly Hills or some other very posh neighborhood, don’t install the bathroom with the supersized steam shower, flat screens over the toilet, or gold plated fixtures…unless you have money to do burn for your own pleasure and enjoyment only.  Those kinds of improvement typically do not increase the value of the average home, and may actually not be what the potential buyers are interested in — translating to extra costs for them.

Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it.  Overdoing it in the end may only cost you more cost out of pocket and at closing time.

Swimming Pools, Movie Stars

While they are a great feature, especially if you love to swim, a pool may not be the thing to draw in hoards of potential buyers.  Some may consider it a perk, but others may perceive it as more trouble than it’s worth when they consider the upkeep and maintenance of keeping it clean.

It’s not uncommon that some homeowners even pay to have their swimming pools buried to create more yard space.  Putting in a pool to try and help raise the value of the home could be a huge investment with very little, or possibly even negative returns.

Not Everyone Wants a Home Office

A home office can be a great feature, if you work from home, or own your own company.  If you are planning to add an office as an upgrade build it with frugality as potential home buyers very likely will have a different use for the space in mind.  Don’t steal usable space from another living area to create a home office.  If you do add an office, or renovate the existing one,make sure the space can easily be converted back into a bedroom or other living space if needed.

Unique Construction

These can range from exotic texturing on the walls, curved corners, to wild Star Wars themed bonus rooms (complete with Death Star disco ball dance floors! ).  While the builders love these for their models and parade homes you very definitely want to consider how much you design the spaces to cater to your specific tastes – which likely will not match those of potential homebuyers.  (although who wouldn’t want a Death Star disco ball, right!? )

Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner to change on their own.  Don’t be tempted to incorporate these ideas into your own home, unless you don’t plan on selling anytime soon.  Homebuyers may not share your enthusiasm when they are tearing down walls and putting in different flooring.

Raise the Roof!

If your roof needs repair, don’t hesitate to have the work done.  It will be one less issue you’ll have to deal with when listing your home. However, simply replacing a perfectly good roof with something more custom like clay tiles, while attractive, may not work in your favor as even though they add appeal to the homes appearance they are not something potential buyers will necessarily see as being worth paying extra dollars for.  Keep it simple when preparing your home to be listed on the real estate market, make the upgrades and improvements that make sense and will carry over into actual return on your investment.

You ask what should be done to help gain value and potential buyers when trying to sell?  In a nut shell, I suggest focusing on 3 main area within the interior home when intending to sell or make a wise decision:  the bathroom, kitchen and curb appeal.  Curb appeal will create interest from potential buyers who just have to peek at the interior.  Bathrooms and kitchens provide the most substantial return on your investment.

source: aarealtors

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Kitchen, bath renovations still tops yet time to “go green”

August 4, 2010 by Matthew Le Baron  
Filed under Sellers

When it comes to adding value and enjoyment to your home, kitchen and bath remodels still remain tops, remodeling and real estate experts say.  But how people remodel is changing.  High-end renovations, costing tens of thousands of dollars, are dwindling, replaced by upgrades that provide homeowners with the most return for the least investment.

Part of the reason could be that mid-range kitchen and bathroom remodels now recoup more at sale time than do up-scale projects, according to the National Association of Realtors’ Cost vs. Value Report.  ”A mid-range kitchen remodel brings an average 72.1 percent return on investment, while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested,” the NAR reports on its website.  Mid-range bathroom remodels recoup an average of about 71 percent, while upscale projects return only about 61 percent, the site says.

“Given the decline in ROI for major remodels, it makes sense to get the most value out of upgrades for the least amount of money,” says Joe Patrick of skylight manufacturer VELUX.  “Installing a skylight is one cost-effective, energy-efficient upgrade that’s becoming increasingly popular for kitchens and baths.”

Kitchens and baths are logical candidates for natural lighting and passive ventilation upgrades.  Along with laundry rooms, they tend to have higher moisture and humidity levels than other rooms in the home, making them among the most popular locations for venting skylights.

“Skylight installations can start around $800 each or range up to more than $2,000 each for electric venting models with remote control and blinds.  The complexity of the shaft and other application specifics make a difference too, so it is best to get a qualified contractor or skylight specialist to give a detailed quote,” Patrick says.  Adding a skylight can help lower energy bills by reducing the need for artificial light in a kitchen or bath, and, when used for ventilation, can help remove humidity, cooking smells and volatile organic compounds (VOCs).

“Venting skylights in a kitchen can release hot air and odors, lessening the need for energy-consuming mechanical ventilation, while providing better light for brighter days and more pleasant cooking and dining,” Patrick points out.

Another kitchen- and bath-specific issue that skylights help address is the need for privacy.  “Light from windows is rarely enough, especially in places where lot sizes are small,” says Jennifer Powers of design firm Scott-Ulmann.  Many modern homes have been built on small lots, in very close proximity to neighboring houses.

“A clear window in your bathroom might fill it with natural light, but it can also give your next-door neighbor a view you don’t want to share,” Patrick says.  In fact, 65 percent of homebuyers request skylights in their bathrooms, according to a National Association of Homebuilders survey.

“In bathrooms especially, venting skylights reduce condensation build-up while providing a beautiful view of the sky above, without affording anyone the opportunity to see in,” Patrick says.  ”You get privacy plus the use of wall space, where a window isn’t necessary, for decorating, storage, or another form of space utilization.”

Modern skylights also eliminate one of the biggest fears of homeowners considering the upgrade – leaks.  VELUX markets an Energy Star-qualified “No-Leak Skylight” that is guaranteed for 10 years not to leak when installed according to instructions.  Today’s skylights also contribute to energy efficiency with light and heat control as much as with ventilation by offering easily installed accessories to adjust and control light, as do vertical windows.

“Venetian blinds are available to adjust light, as are roller blinds to diffuse light and blackout blinds to block light,” Patrick says.  “And the accessories, as well as the units themselves, can be operated by remote control.”  Solar blinds are also available that qualify for a 30 percent federal tax credit.

“From an economic standpoint, venting skylights admit light from above and reduce energy costs.  It’s also a way to stretch dollars,” Patrick says, “with a one-time purchase that pays long-term benefits by reducing energy bills.”

For skylight selection or installation information, visit veluxusa.com.  For government information on window and skylight energy efficiency, visit energystar.gov, and for independent agency information visit nfrc.org or efficientwindows.org.

source:  ARAcontent

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Consider rent to own or lease-purchase if unable to sell in today’s market

July 20, 2010 by Matthew Le Baron  
Filed under Sellers

Being unable to “compete” with the bank owned properties and short sales is quite discouraging. It can be easy to get disheartened any time things are not going your way. If able, you may decide to put off selling till the real estate market recovers. If this isn’t an option for you personally, you will need to think about some creative options.

A popular option is to offer the house as “rent to own” or “lease with an option to purchase”. Selling in this manner can have quite a few benefits for you as a home seller. Why don’t we take a look at just a few!

Obtain Income Today!

If you are making a payment for a home which you are no longer living in you know precisely how aggravating this can be. When you obtain a lease to own buyer tenant, you instantly start to collect payments that are more than enough to cover the monthly payments associated with the residence. A rent to own tenant plans to have to pay out the entire carrying costs connected with your property. After all, if they simply cannot afford to pay that now how will they ever manage to exercise their option?

An even better Solution than Renting Your property

When you rent to own the tenant typically has a “vested interest” in the home. Simply because they plan on the house some day being theirs in the classic sense, the tenant buyer is much more prone to take care of the house. They’re inspired to keep it in good shape and free from any major issues caused by neglect. This means you can count on air filters getting changed and air conditioners getting services. And, because most rent to own contracts place the burden of most home maintenance on the tenant buyer, you don’t have to worry about being harassed for every little issue.

You Control the Terms and Conditions

If you were to hold out for a conventional sale, chances are the buyer is going to expect some sort of reduction in the purchase price. A full price offer is just not all that common in the current real estate market.

However, with a rent to own transaction, you have more control. The tenant buyer understands that they are going to pay full fair market value for the home because you are giving them time to get their finances in order. And, unlike in a competitive rental market, you can expect to receive a payment that covers all of your expenses associated with the home.

Is this an option for you?  If so, please contact Matt at:  869-3469!

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Property tax not popular, but municipalities count on it

June 14, 2010 by Matthew Le Baron  
Filed under Sellers

Although Idaho residents don’t like the property tax and think it’s unfair, the state’s largest city relies more heavily on that tax than others of similar size to pay for its police, parks, and other services.

In a survey of ten western cities in eight states, Boise State University’s Public Policy Center found that Boise received 24 percent of its revenues from taxing business and personal property – the highest proportion of all the cities surveyed.

The property tax typically makes up 16 percent of municipal revenues in all cities around the country.  The rest comes from fees, service charges, federal aid, state revenue and other taxes.

The property tax is considered a more stable revenue source than the sales tax, said Stephanie Witt, who is director of the Public Policy

Center and the Social Science Research Center at Boise State.

“The downside is people just don’t like the property tax,” she said.  “It’s complicated, it’s highly technical, and they fear losing their home.”

Witt and fellow researchers James Weatherby and Lisa Wennstrom compared Boise to similar-sized cities in Arizona, California, Colorado, Nevada, Oregon, Utah and Washington. They found that every year except 2001, at least one or more of the states had considered or enacted some kind of property tax limitation. Idaho has enacted a few since 2001, including in 2006, when it shifted the .3 percent general public school maintenance and operations property tax levy to the state general fund, and raised the sales tax by a penny to 6 percent.

Nationally, 38 states permit local sales taxes, although with varying degrees of leeway for the municipalities, according to the National Conference of State Legislatures.

Individual cities, including Boise, have participated for years in efforts to make other means of revenue than the property tax available to the city.

One alternative is the local option tax, a tax that is levied – with permission from the state – by cities, counties, and districts such as auditorium districts. In 1978, Idaho lawmakers gave resort cities with populations under 10,000 authority to levy local option taxes. The amount varies greatly, with Driggs adding a .5 percent tax to some sales, and Hailey adding 3 percent on vehicle rentals, hotel rooms, restaurant foods, and other purchases.

Among other things, cities use the local option tax to capture sales from out-of-town residents who might use local taxpayer-funded services such as police and fire. That is what Bieter wants to do, said Jade Riley, the mayor’s chief of staff.

Idaho cities want lawmakers to give local districts, not just the resort cities, the right to use the local option tax. Cities and counties have been working since the early 1970s to earn state legislative approval for expanding their local option taxing authority, Witt said.

But lawmakers have resisted. Some business owners and business associations oppose it too.

“It’s just a giant pain in the rear for businesses when you have a local option taxes,” said Billy Knorpp, who owns a cash register business called Direct POS and also works in Washington and Utah, where local option taxes are more common. “Local option taxes make a huge patchwork quilt of taxes that is very difficult to keep track of.”

As it is, Idaho already has more than 950 property taxes districts, said Randy Nelson, the president of the Associated Taxpayers of Idaho. Those include 44 counties, 191 cities, 113 school districts, 76 highway districts, 177 cemetery districts, 151 fire districts, three community colleges, 54 library districts, 24 ambulance districts, and 116 other districts for things like mosquito abatement, sewer, water, and pest extermination.

A local option tax “would add complexity to Idaho’s tax system,” Nelson said.

Of course, the property tax is highly unpopular as well, noted the Boise State report.

“More respondents to the Boise State University Annual Public Policy Survey choose the property tax as ‘the least fair tax” than any other tax,” the report read. “This pattern has held consistently since 2001.”

A cap that the Legislature placed on Micron Corp.’s property tax liability in 2003 costs the city of Boise about $2.8 million each year in property tax revenue, according to Adam Park, a spokesman for the mayor’s office.

Riley said the Legislature should give city residents a chance to decide, by a local vote, whether they want a local option tax that might lower their property tax burden. The last local option tax bill, which came up in the 2008 session, would have allowed the state’s 44 counties or nearly 200 cities to levy local option taxes.

“We would like to see more tools, not so we can spend more money, but balance out who pays for what,” he said.

Boise has also joined others in calling to remove costly sales tax exemptions, some of which date back decades. The city also collects user fees on many of its services.

“Like a good business person, we want to show some diversity,” Riley said. “We think there are some ways of relieving the property tax burden.”

source:  IBR

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How to Compete Against Bank-Owned and Short Sales Homes

June 9, 2010 by Matthew Le Baron  
Filed under Sellers

The below article is from About.com.  The information provided is very useful–especially if attempting to sell in this particular market which is encumbered by a large amount of distressed property.  Enjoy!
Matt
If the house for sale next door to you is a bank-owned home, but all the other homes for sale in the neighborhood are not, you don’t have much of a problem. However, if most of the homes that have recently sold in your area were bank-owned homes and short sales, you have a problem. That problem is you must compete with foreclosures and short sales to sell your home.Your home’s market value is directly related to distressed sales if those short sales and foreclosures dominate the neighborhood.

Prior to the real estate bubble of the mid-2000′s, appraisers would often ignore the distressed sales when appraising a home. Since then, appraisers pay close attention to the number of distressed sales that have closed and those presently for sale. What’s a regular seller with equity supposed to do to compete?

Pricing a Home With Equity Against Foreclosures and Short Sales

Pricing a home is at best a mix of facts, science and emotions. It’s a combination of wearing a seller’s hat and stepping into the buyer’s shoes. Bear in mind that it doesn’t matter much how much you think your home is worth if a buyer disagrees. Try answering these 3 questions:

  • What would make a buyer buy your home over a foreclosure or a short sale?
  • Why would a buyer’s lender appraise your home for more than a foreclosure or short sale?
  • How much more is your home worth than a distressed sale?

You might be surprised at the answers. The truth is your home is not worth a whole lot more than a foreclosure, even if you put in upgrades, if all the recent sales are foreclosures and short sales. Appraisers don’t give a huge allowance for upgrades like they used to do.

Buyers want a good deal. They might buy a home that needs carpeting, for example, if adding the cost of new carpeting still makes that bank-owned home’s price attractive. On the other hand, if your home, with equity, is in tip-top shape and priced within the range of distressed sales, a buyer is much more likely to choose your home.

However, say, a bank-owned home priced at $200,000 needs $10,000 worth of work or improvements. If your home doesn’t need any work, a buyer might offer only $210,000 for your home.

Examine the Foreclosed and Short Sale Comparable Sales

 

  • Look at every similar home that has sold in the neighborhood over the past three months to determine comparable sales. The list should contain homes within a 1/4 mile to a 1/2 mile and no further, unless there are only a handful of comps in the general vicinity or the property is rural.
  • Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks.” Where I live in the Land Park neighborhood of Sacramento, for example, identical homes across the street from each other can vary by $100,000. Perceptions and desirability have value.
  • Compare similar square footage, within 10% up or down from the subject property, if possible.  
  • Compare homes with similar ages. One neighborhood might consist of homes built in the 1950s, co-mingled with another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples.

Tip: I suggest that sellers in this market  price homes among distressed sales a little bit below market value. This tends to drive multiple offers as buyers outbid each other, resulting in a higher sales price for sellers.

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2010 Remodeled Homes Tour June 5 to 6

June 4, 2010 by Matthew Le Baron  
Filed under Sellers

Those planning a home remodeling project this summer will want to attend the 2010 Remodeled Homes Tour June 5 to 6. The National Association of the Remodeling Industry of Idaho (NARI), will showcase home remodeling projects primarily in Boise and Meridian.

“It’s a great tour for everyone. You get to see pictures of what the home used to look like, versus what it was. It showcases all the possibilities through remodeling,” said Teri Ottens, executive director of the local Nari chapter.

“While the tour targets a very select group of people,” Ottens said, “we see everyone from people in their late 20s up to their 60s coming through.”

Ten homes will feature minor or major revamps – from smaller bathroom or kitchen remodels to homes that are completely revamped – inside and out. Home tours are self-guided, but contractors are available at every site and are able to answer questions.

Homes will be open 11 a.m. to 5 p.m. both days. Tickets are $5 online, by phone at 322-8191, or in person at any of the homes. Additionally, a map highlighting their locations is available at the Nari of Idaho Web site.

source:  ibr

To search the MLS real time Click Here
To obtain a free market evaluation for your home Click Here
To chat with Matthew Le Baron Click Here

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