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Estimating Value of Home is a Tricky Business - 2010-02-14 |
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ESTIMATING VALUE OF HOME IS A TRICKY BUSINESS
Last week I reminded owners of property in DeKalb, Hall, Gwinnett and Newton that they have until March 1 to request a reduction in property value for tax purposes. Most other Georgia counties allow owners until April 1 to file a "Taxpayers Return of Real Property." The form you need is PT-50R, and it's free at money99.com. One of the blanks on that form requires you to estimate the value of your own property.
So what's my house really worth?
The answer is, of course, exactly what someone is willing to pay for it. And in today's slow-as-molasses real estate market, it is particularly difficult to find evidence to support your estimate of value.
While there is no penalty for guessing low, you can save yourself time and aggravation by gathering evidence now to support your estimate.
They're called comps, also known as comparable sales. These are recent sales in your neighborhood of homes similar in age, size and condition to your home. Three recent comps should be your goal.
If you live in a large subdivision of identical homes, your job is much easier. But if you live in a diverse community of many different home sizes and ages, your job becomes much more difficult. The endless quest for meaningful comps is the heart of the appraiser's job, and they make use of many tools to assist them.
First, you might want to visit the website Realtor.com and obtain a free instant Home Value Report. When I searched my house, it only showed sales that were more than six months old, but at least it was a starting point.
Next, you can visit Zillow.com for a more in-depth look at sales in your community. Interestingly enough, this site rendered a very different set of comps for my house, although all were factual.
You may find that there are more comps than you can really handle, so try to stay close to your house geographically, in age and condition, and especially in size. A four bedroom two story is not comparable to a two bedroom ranch on a slab.
Finally, it may be wise to consult a real estate professional. Through their membership in the multiple listing service, agents have access to completed sales data maintained by the counties themselves, so you know it is accurate and complete. Agents call their evaluation a "competitive market analysis," or a CMA, and routinely provide them to potential sellers.
One final point - if you miss the filing deadline, you are stuck paying property taxes for another year at what is likely an unrealistic valuation of your house. My advice is this: if you think there is any chance that your home's current valuation is too high, file a property tax return as soon as possible. By doing so you lock in your rights to present your evidence later.
Next week: Do You Need to Pay for a Formal Appraisal?
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, July 30th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 06th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 13th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 20th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 27th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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John Adams Presents
“The MetroVestAtlanta.com REO Bus Tour”
Get on the bus for a tour of South DeKalb County’s “Real Estate Owned”
homes. Each house you visit will be available that day for purchase at
a giveaway price, regardless of current condition. Financing is
available!
Throughout the day, we will hear from mortgage providers, people in the
construction business and property managers all discussing today’s
situation with Bank Owned REO properties.
Who Should Attend: Investors, Realtors, Lenders, Prospective Buyers, and
anyone who might want to buy a super-bargain house and either do the
rehab themselves or have all the work performed by the pros.
You will see abandoned dumps and finished products, and everything
in between. And Snap will be there to answer all your questions and
explain the rehab and rental strategies.
Saturday, August 21st, 9:30 AM to 4:00 PM
Your $49 fee includes the bus tour and lunch. You must make reservations. No walk-ups.
There is limited seating and the seats are filling fast. ACT NOW before you miss the bus.
We will be meeting at Suburban Plaza, 2643 N. Decatur Road and Church Street, Lower Level, Decatur 30033 (beneath Hancock Fabrics, in the arcade.)
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