I'm aware that some time has passed since I last posted to this blog - that reflects the slowness of the market presently.
As the real estate business slows we have to work harder to find and maintain the interest of the buyers.
Presently the buyers know that they control the market and many of them are sitting tight waiting to see what will happen next.
There is a lot of pent up demand and sooner or later the buyers are going to get fed up waiting. We are doing our best to be alert to when that day arrives.
In the meantime Sellers need to be very alert to what the buyers are looking at / buying. Right now the word is 'cheap'
If you really want to sell your property you need to know what the competition is and how your property is priced relative to that competition. The cheapest one sells first.
Quintus
Saturday, June 25, 2011
Saturday, March 12, 2011
Is Spring here yet?? - Tax Time.
At this time of year it's like that - when will the weather warm up??
A lot of people are calling to discuss their Real Estate Taxes - lots of unhappiness about the fact that the taxable values went up again.
Here, in Michigan, the Assessed Value or Taxable Value as it is sometimes known (that is the amount used to calculate your taxes) goes up each year by the Rate Of Inflation or 5% whichever is less.
Your State Equalized Value or SEV can go up any amount conceivable by the Assessor. It may also go down and we have seen this a lot more in recent years. The SEV is supposed to be nominally 50% of the Fair Market Value in Michigan. But it is complex - the Board of Equalization exists to make sure that all districts pay their fair share of the required taxes and that any one district does not contribute more or less than average to the County and State coffers.
So the question is Who decides on what the SEV should be and How do they make that decision.
????????????? wait a minute - the tax you pay is calculated using the Millage Rate and the Assessed or Taxable Value - so where does the SEV come in? - only when the property sells is the SEV of interest.
This is because the property taxes, on transfer of ownership become 'uncapped' - i.e. the Taxable Vaue (Assessed Value) becomes equal to the SEV.
So my question is what drives the SEV? - It's not entirely clear to this Real Estate Broker but I will try to explain if I find out more on the subject.
So here is the real problem with the SEV - when a property sells a document is generated called the Property Transfer Affidavit. This document finds it's way to the Assessor who then changes the Taxable Value to the value of the SEV.
So how do you sell a house whose asking price is $268,000 and whose SEV is $268,000
(The implication is that the New Owner will be paying tax at twice the rate he ought to.)
Because the Fair Market Value ought to be (generally speaking and in an 'arms length' transaction) twice the SEV. (State Rules)
This example illustrates a very common problem that we are dealing with in our market. The problem is putting a serious damper on sales of real estate.
It's time that the Board of Review members start to take these issues seriously because the current confidence in the Board of Review is not good.
As a Real Estate Broker I have been appalled at the lack of interest and the lack of real concern for the issues displayed by the Board of Review here in Pentwater.
Perhaps we might see some real effort by them to correct some of these anomalies in the system.
Also please don't imagine I lay the blame on the Board of Review - I am sure they have rules to abide by and I'm sure it's not the easiest of jobs and probably unpaid but if you are going to serve the public then get committed, I say.
A lot of people are calling to discuss their Real Estate Taxes - lots of unhappiness about the fact that the taxable values went up again.
Here, in Michigan, the Assessed Value or Taxable Value as it is sometimes known (that is the amount used to calculate your taxes) goes up each year by the Rate Of Inflation or 5% whichever is less.
Your State Equalized Value or SEV can go up any amount conceivable by the Assessor. It may also go down and we have seen this a lot more in recent years. The SEV is supposed to be nominally 50% of the Fair Market Value in Michigan. But it is complex - the Board of Equalization exists to make sure that all districts pay their fair share of the required taxes and that any one district does not contribute more or less than average to the County and State coffers.
So the question is Who decides on what the SEV should be and How do they make that decision.
????????????? wait a minute - the tax you pay is calculated using the Millage Rate and the Assessed or Taxable Value - so where does the SEV come in? - only when the property sells is the SEV of interest.
This is because the property taxes, on transfer of ownership become 'uncapped' - i.e. the Taxable Vaue (Assessed Value) becomes equal to the SEV.
So my question is what drives the SEV? - It's not entirely clear to this Real Estate Broker but I will try to explain if I find out more on the subject.
So here is the real problem with the SEV - when a property sells a document is generated called the Property Transfer Affidavit. This document finds it's way to the Assessor who then changes the Taxable Value to the value of the SEV.
So how do you sell a house whose asking price is $268,000 and whose SEV is $268,000
(The implication is that the New Owner will be paying tax at twice the rate he ought to.)
Because the Fair Market Value ought to be (generally speaking and in an 'arms length' transaction) twice the SEV. (State Rules)
This example illustrates a very common problem that we are dealing with in our market. The problem is putting a serious damper on sales of real estate.
It's time that the Board of Review members start to take these issues seriously because the current confidence in the Board of Review is not good.
As a Real Estate Broker I have been appalled at the lack of interest and the lack of real concern for the issues displayed by the Board of Review here in Pentwater.
Perhaps we might see some real effort by them to correct some of these anomalies in the system.
Also please don't imagine I lay the blame on the Board of Review - I am sure they have rules to abide by and I'm sure it's not the easiest of jobs and probably unpaid but if you are going to serve the public then get committed, I say.
Tuesday, February 22, 2011
New Year - New Market
Well here we are in a new year with a new Real Estate market.
Buyers are actively seeking real estate to buy but the results are heavily predicated on the banks reaction to the particular property they want to buy and, of course, the buyers credit worthiness.
Especially with the low mortgage interest rates the banks are unhappy lending money out for so little return. They will do it if they are comfortable with the risks.
Many Sellers are pulling their listings because of lack of Buyer interest in the normal price / value range that has been offered over the past 3 or 4 years.
The present market is wonderful for those who would own their own home and who have the down payment and ability to pay the monthly payments.
So we are seeing sales in the price range under $150,000
The occassional sale over $150,000 is also occurring.
Buyers Take note:-
1. Get quotes from at least 3 Banks - it seems like a lot of work but it's worth doing.
2. There are lots of available properties in the $150,000 and under price range.
3. Excellent value properties keeping popping on the market because of Repossession.
4. These low price, high value properties do not last long on the market even today.
5. Negotiate hard but carefully - Sellers have had their fill - The banks know exactly where they will settle.
Happy Hunting - More listings coming soon!!
Quintus
Buyers are actively seeking real estate to buy but the results are heavily predicated on the banks reaction to the particular property they want to buy and, of course, the buyers credit worthiness.
Especially with the low mortgage interest rates the banks are unhappy lending money out for so little return. They will do it if they are comfortable with the risks.
Many Sellers are pulling their listings because of lack of Buyer interest in the normal price / value range that has been offered over the past 3 or 4 years.
The present market is wonderful for those who would own their own home and who have the down payment and ability to pay the monthly payments.
So we are seeing sales in the price range under $150,000
The occassional sale over $150,000 is also occurring.
Buyers Take note:-
1. Get quotes from at least 3 Banks - it seems like a lot of work but it's worth doing.
2. There are lots of available properties in the $150,000 and under price range.
3. Excellent value properties keeping popping on the market because of Repossession.
4. These low price, high value properties do not last long on the market even today.
5. Negotiate hard but carefully - Sellers have had their fill - The banks know exactly where they will settle.
Happy Hunting - More listings coming soon!!
Quintus
Tuesday, November 30, 2010
Approaching Year end 2010
We were all hopeful in the middle of the year that sales would pick up and things would improve.
As it happened the frightful political and economic times have sent all but the most nerveless into real estate hiding.
I suppose there is a fine line between 'persistent optimism' and 'obsession' but where the line is I don't know - hopefully I haven't strayed over it yet!! I am optimistic that the market will come back but I cannot say quite when.
I am sure that it has to do with the unceratinty of how much tax we will be asked to pay in the New Year and how much of an increase we will see in our Health insurance bills.
What I do know from experience is that in the next 5 years home prices will go higher and that now is a great time for lower income people to acquire a home at excellent rates.
For investors also the opportunities are amazing right now - how long that will last is probably also tied to the popular feelings about taxes etc.
There is a lot of pent-up demand - we know that because we have not stopped showing property and talking to people. When these people decide it's time to put pen to paper, if you are selling, now is the time be be sure that you are asking a realistic price because the prices of 2 years ago just will not wash today.
Keep well and get realistic; now is the best 'buyers market' we are ever again likely to see.
All the best
Quintus
As it happened the frightful political and economic times have sent all but the most nerveless into real estate hiding.
I suppose there is a fine line between 'persistent optimism' and 'obsession' but where the line is I don't know - hopefully I haven't strayed over it yet!! I am optimistic that the market will come back but I cannot say quite when.
I am sure that it has to do with the unceratinty of how much tax we will be asked to pay in the New Year and how much of an increase we will see in our Health insurance bills.
What I do know from experience is that in the next 5 years home prices will go higher and that now is a great time for lower income people to acquire a home at excellent rates.
For investors also the opportunities are amazing right now - how long that will last is probably also tied to the popular feelings about taxes etc.
There is a lot of pent-up demand - we know that because we have not stopped showing property and talking to people. When these people decide it's time to put pen to paper, if you are selling, now is the time be be sure that you are asking a realistic price because the prices of 2 years ago just will not wash today.
Keep well and get realistic; now is the best 'buyers market' we are ever again likely to see.
All the best
Quintus
Tuesday, June 1, 2010
Summer is here
Summer is here in Pentwater, The streets are busy and we got some strong indications of interest from prospective buyers at our open houses over the weekend.
Note our 'Open Houses' are attended by an agent at the advertised times (barring accidents!!)
I see some people advertising 'Open House by Appointment' - well, our listings are "Open House by appointment" all the time.
We had someone in the office over the weekend asking for 100 feet on Lake MI for around $30,000 - we figure if we find one of these we won't be telling anyone about it!
We Have 8 Reduced Price listings in our weekly Brochure dated 1st June 2010 and 10 New Listings.
Of course these are all on the web too.
Keep well
Quintus
Note our 'Open Houses' are attended by an agent at the advertised times (barring accidents!!)
I see some people advertising 'Open House by Appointment' - well, our listings are "Open House by appointment" all the time.
We had someone in the office over the weekend asking for 100 feet on Lake MI for around $30,000 - we figure if we find one of these we won't be telling anyone about it!
We Have 8 Reduced Price listings in our weekly Brochure dated 1st June 2010 and 10 New Listings.
Of course these are all on the web too.
Keep well
Quintus
Wednesday, April 28, 2010
Housing recovery
The Case-Schiller index indicates today that the housing sales improved by 0.6% this month past and that house prices have risen slightly.
Also noting that average (across the nation) house prices are down 30% from where they were in early 2006.
That is GREAT news.
We are experiencing a stronger market - our first quarter sales have been stronger than last years marginally.
Whether or not that will be sustained throughout the year remains to be seen butour Brokers are confident in the future of the Pentwater Market.
Looking at the market today it is bifurcated in that there are very good opportunities out there and yet quality homes in good locations are holding and possibly increasing in value and commanding interest from potential buyers.
So good signs all around.
Enjoy Spring - keep well
Quintus
Also noting that average (across the nation) house prices are down 30% from where they were in early 2006.
That is GREAT news.
We are experiencing a stronger market - our first quarter sales have been stronger than last years marginally.
Whether or not that will be sustained throughout the year remains to be seen butour Brokers are confident in the future of the Pentwater Market.
Looking at the market today it is bifurcated in that there are very good opportunities out there and yet quality homes in good locations are holding and possibly increasing in value and commanding interest from potential buyers.
So good signs all around.
Enjoy Spring - keep well
Quintus
Tuesday, April 6, 2010
Trouble with passwords???
If you are troubled with remembering passwords here is a trick to help .
You will not have to actually memorize passwords any more except for one basic piece to the puzzle.
Let's say your name is Jeremiah Heep and your phone number (last four digits) is 4325
Well, everyone can remember their own name I hope!
Make a password that is like this JhHp (First and Last letters of your names noting the case also)
Add the first and last numbers from your phone number (45) So that your password becomes
JhHp45
Now this is the part that you have to remember - the only part.
All your passwords have this as their core. (But remember you can contruct it your own way so long as you can remember it)
Lets say you want to sign into your Google account your password becomes:-
JhHp45G or JhHp45google etc.
Just exactly how you create the password for a given web site depends on how you think of that site; for example
Hewlett Packard - HP or hp (password becomes JhHp45HP)
Norton - NAV or norton etc (password becomes JhHp45NAV)
Paypal - pp (password becomes JhHp45pp)
This way you can pitch that little book you write down passwords in!!
Hope everyone had a great Easter
Keep well
Quintus
You will not have to actually memorize passwords any more except for one basic piece to the puzzle.
Let's say your name is Jeremiah Heep and your phone number (last four digits) is 4325
Well, everyone can remember their own name I hope!
Make a password that is like this JhHp (First and Last letters of your names noting the case also)
Add the first and last numbers from your phone number (45) So that your password becomes
JhHp45
Now this is the part that you have to remember - the only part.
All your passwords have this as their core. (But remember you can contruct it your own way so long as you can remember it)
Lets say you want to sign into your Google account your password becomes:-
JhHp45G or JhHp45google etc.
Just exactly how you create the password for a given web site depends on how you think of that site; for example
Hewlett Packard - HP or hp (password becomes JhHp45HP)
Norton - NAV or norton etc (password becomes JhHp45NAV)
Paypal - pp (password becomes JhHp45pp)
This way you can pitch that little book you write down passwords in!!
Hope everyone had a great Easter
Keep well
Quintus
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