Investment Property Archives
Posted by Mike Parsons
September 05, 2008 at 04:30 PM
Do you think your property, or your client's property, is valued too high by the Auditor's office for real estate taxes? Check out this article written by good friends of mine Ralph and Brian Berger. There is a complaint process that is administered by the Board of Revision.
If you believe your value is high you will need undisputable evidence to support the valuation. Once you appeal your value, it can go up, down, or stay the same.
Taxes are one year in arrears. Therefore, your tax bill that will come out around December 20, 2007, is for the valuation of your property up to 1/1/07. This means if you have an appraisal for the appeal it should be dated as of 1/1/07.
If property values are dropping in your neighborhood in the year 2007, then this will take effect with your 2008 tax bill.
The county re-evaluates your property taxes every three years. Therefore, the county will be re-evaluating your tax valuation in 2008 (also upon transfer assessed valuation is adjusted to the sales price).
Instruction on filing a tax complaint and forms are located on the Auditor's web site. All local Auditor's web sites are on ColumbusRealtors.com under `Related Links'. Once at the Auditor's web site look for tax complaint or board of revision.
Also you will need to pull up your property record card from the auditor's office (under property search). This will have information needed to fill out the board of revision tax complaint form (i.e., tax district, parcel number, assessed valuation, owner of property and sales history).
Typically for residential properties, if the form is filled out properly and submitted and received before the deadline (March 31), and with evidence (an appraisal completed by a state certified appraiser) supporting a lower value, the board will make a decision and either will accept the appraisal value or set up a formal hearing.
The board of revision, the school board representative, and the person filing the tax complaint (and their attorney and/or appraiser) are usually the parties at the hearing.
The board will review your evidence (usually an appraisal or recent sales of properties or comparable sales of similar properties) for a lower property value. The school board attorney will also have the right to review the evidence and ask questions.
The board then takes the evidence under advisement and will notify by certified mail of their decision.
If the school board is involved they will (1) accept the board's decision or (2) appeal the case if they are in disagreement.
The school board if in disagreement may elect to have the property appraised for the appeal. The school board has a vested interest in real estate property taxes as they receive most of their funds from these taxes.
The appeals hearing is similar to the first hearing except now there is an opposing side.
After all evidence is presented, the board again will take under advisement and notify of their decision later by certified mail.
It is very important to fill out the form completely and properly. If an entity other than an individual is owner of the property the complaint may need to be signed by an attorney. Be careful to meet the deadline, and have substantial evidence to show a reason for a lower value. This form needs to be notarized. Complaints will only be accepted from December to March 31.
I have appeared before several boards of revision on numerous occasions and have found them to be very fair in both the complaint process and their decision.
The auditor's office uses a mass appraisal system to determine the value of your property. The system is good, however, most are expected to be the correct property valuation, but some are also expected to be high and low.
We are currently in a buyer's market in central Ohio as evidenced by larger inventory of houses, longer selling periods and generally leveling prices. Therefore, tax complaints will probably increase in 2008 even though the county will be doing a complete re-evaluation of properties.
By Ralph F. Berger, MAI, SRA and Brian R. Berger, R.F. Berger and Associates, Inc.
Posted by Mike Parsons
May 23, 2008 at 04:28 PM
(April 23, 2008) The number of homes listed for sale over the past two months is lower than the previous year suggesting the market may be beginning to adjust itself. The 4,518 homes added to the market in April were 8.5 percent lower than April of 2007 and the 3,697 new listings in March were almost 29 percent lower than the previous year according to the Columbus Board of REALTORS®. The number of new listings January through April (15,648) is almost 12 percent lower than the same period last year.
“The recent lower sales prices are due to the overflow of inventory on the market for the last couple years,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “It’s simple economics…When there is a greater supply than demand; the price will drop in order to compete.
Although a hard pill to swallow for sellers, buyers have been in a very favorable position these past couple years. Now that may be changing.”
Currently, there are over 17,500 residential homes and condominiums available for sale in the central Ohio area. Although there is a broad
selection of homes in every price range, 67 percent of the listings fall in the $100,000 - $399,999 price ranges.
Home sales for the year (January through April) are 12.3 percent lower than the same period last year, but are still in keeping with the pre-boom
sales pace. The average sale price year to date is 7.2 percent lower than what the average home sold for last year.
“We’ve also seen a 40 percent decrease in the number of homes sold this year in the $750,000+ price range,” offers Hrabcak.
“That kind of decrease in higher end home sales has significantly impacted the average sale price.”
“Word on the street?...Agents can’t believe that sales are down because they’re so busy. Housing activity has really picked up
now that the weather is nice and buyers are realizing that market conditions are so good.”
To view March & April sales charts, click here.
The Columbus Board of REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow
and Union Counties and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, Pickaway and Ross Counties.
-Reported by the Columbus Board of Realtors
Posted by Mike Parsons
May 08, 2008 at 08:50 PM
HUD foreclosures are now back on the market. The HUD property marketing contract has been re-assigned to National Home Management Solution from Chapman Law Firm. They were taken off the market for the last couple months as the new firm took over and re-inventoried the properties. Buyers interested in purchasing HUD homes can find them listed at www.NHMSI.com.
All buyers should consult a real estate agent when considering HUD homes as they can be a great investment but often requires an experienced agent to navigate these properties to closing. Please contact The Parsons Real Estate Group if you have any questions about HUD properties.
Posted by Mike Parsons
April 14, 2008 at 11:19 AM
If you are a first time buyer who doesn't need to sell a home , you have an upper hand in today's market . Mortgage interest rates are at historic low points. There are over 17,000 new and resale homes that offer a tremendous selection. For investors who like to hold real estate for the long term, today's market is a goldmine. The properties competeing for buyers along with the low interest rates make this a perfect investor market. For the move up buyer, today is a great time to sell and move up. If your home was valued at $300,000 last year yet you might sell it for $270,000 today, you may have lost the opportunity to earn the $30,000 difference. However, you can assume that the $500,000 home of your dreams also is selling for 10% less, thus saving you $50,000 on the price of the new home. Guess who comes out on top...you do !
To find your perfect dream home , call The Parsons Real Estate Group !
Posted by Mike Parsons
December 02, 2007 at 08:06 PM
This blog characterizes the true profits of many of the home flipping shows we see on TV everyday. In my opinion his thoughts are very accurate. You can read his article at the site listed below.
Article from Daily Brilliance
Posted by Mike Parsons
August 29, 2007 at 08:09 PM
9/15/07-We will be hosting a FREE Home Buying Seminar for first time buyers. We thought we would do this class to help first time buyers feel more comfortable going through the home buying process. Often, buyers haven't done the necessary research and aren't prepared for their home purchase. This course is designed for those that hope to buy within the next year, but maybe not tomorrow. It is intended to give home buyers the basics so that everything isn't thrown at them all at once when the time comes to buy. This discussion is intended to disregard the hype and talk about the real issues that are important first time buyers. Subjects that we will talk about are:
1. Typical Steps in a Real Estate Purchase including financing, home search, making and negotiating an offer, to inspections, insurance for your home, and closing on your home.
2. How do I apply for a mortgage loan? What things do I need to be aware of when applying for a mortgage?
3. The biggest mistakes first time homebuyers make in Columbus, OH.
We will have an open forum for any questions big and small after the presentation.
The Free Homebuying Seminar will be held at Park National Bank located 7140 N. High St. Worthington, OH 43085 (Just South of 270 on the corner of Wilson Bridge and High). It will begin at 10am and will go unitl approx. noon depending upon the amount of questions. Light refreshments will be provided. Please call or email to register your seat. 614-523-6818. RSVP is required.
9/15/2007 at 10AM Park National Bank Worthington, OH 43085 614-523-6818 or email mike@parsonsrealestategroup.com to register now!
Posted by Mike Parsons
July 05, 2007 at 09:07 PM
In case anyone was wondering where HUD properties had gone they are back. Due to a change in the national management company they have been on hold until the new system was up and running. The new website to view HUD homes is http://www.clfres.com. For whatever reason, there has been a trend in all foreclosure resales to price them pretty close to market value. HUD is no exception. The appraised value in relationship to the retail value of these homes have seemed go up across the board while house values in general have declined or slowed across the board. Apparently there are enough nit wits out there buying homes that need $30,000 worth of work for $10,000 under retail value. Doesn't make since.
Some other changes include a slightly shorter closing time allowance, from 60 days to 45 days. Also, there is now an actual written inspection contingency in the contract where before you where buying on faith. There are still some good deals out there for the buyer who is not afraid to pull the trigger. If anyone has any HUD questions feel free to write or call and I will be glad to help!
Posted by Mike Parsons
August 18, 2006 at 07:20 PM
The answer is, It Depends! Location. Location. Location. 3-5 years ago condominium complexes like Bethel Village (corner of Sawmill and Bethel) appreciated a little more per year than many well-to-do, surrounding single family homes. Due to economies of scale, and developers finding greater profit in condo development, we have seen many new condominium projects built on Columbus's North arch and downtown areas. This has transplanted a lot more condo inventory into the marketplace in the last couple years. When supply rises, demand falls. When demand falls, price appreciation will slow.
Continue reading Condo vs. Home, What is the best investment? »
Posted by Mike Parsons
August 17, 2006 at 06:49 PM
Many buyers struggle with whether they should buy a condominium or a single family home. A common objection for condos is thinking that a condo fee is throwing money away. One must first understand what a condo fee covers. Often, a condo owner will not have to pay for water or sewer costs, this is paid by the condo association.
Continue reading Home vs. Condo - Are condo fees worth it? »
Comments (2)
Posted by Mike Parsons
July 24, 2006 at 11:12 AM
The Dept. of Housing and Urban Development (HUD), guarantees no/low down payment loans for banks. Meaning if an FHA loan is foreclosed upon, HUD protects the bank by buying the foreclosed property and taking the loss the bank would have incurred.
I like HUD’s better than most foreclosures because you tend to see a better profit margin between the asking price and the potential fixed-up value. I have purchased a few HUD’s over the years for myself and with clients. Sometimes the newer properties don’t need that much work, other times homes need 10’s of thousands of dollars put into them. One of the reasons you can find a better deal with HUD’s is that they give preference for the first 10 days the property is listed, to owner-occupant buyers (buyers that will live in the home for at least 1 year). This allows the savvy buyer to avoid the competition of the investors that buy 90% of all foreclosures.
Continue reading HUD Foreclosures »
Comments (1)
