A public tax assessor gives the assessed value for a property. This assessment typically occurs yearly for taxation purposes. The fair market value is an agreed-upon price between a willing buyer and seller. There is usually a difference between the assessed value and market value. For homeowners, the assessed value is a double-edged sword. Because, if their annual assessed value increased then their yearly taxes will also be raised.
On the flip side, when selling a house it can help boost its market value. To get a market value, Individuals can purchase an appraisal on their own or hire a real estate agent to perform a comparative market analysis. You may want to do this if you’re thinking about selling and want to know how much to list the property for, or have your eye on a home for sale and are curious if it’s a fair price.
As a homeowner, there are many reasons to know your market value. For example, if you bought a home several years ago and the value increased, you have more home equity. You can leverage this to qualify for refinancing or secure a home equity loan.
When it comes to assessed value, you might wonder what happens if you live in an area where the housing market is hot and homes are selling for far more than they’re worth. After all, that’s not exactly fair to homeowners who don’t want to sell and are stuck with the rising tax bill. The good news is that many states and municipalities have laws in place to prevent property taxes from jumping along with inflated property values.
As always, I am here to help you figure out the best value for your home in this market or if you have any questions feel free to reach out. Gary Cardillo 941.676.1008
Source: Forbes
A Summer Full of Surprises
Housing Market Update: Real Estate Chess Match
For years now we’ve been advised by real estate attorneys to use the FAR BAR AS IS purchase contract with right to inspect. The reason for this is that while it does protect the buyer, it takes some of the ambiguity out in determining if an item in the home is functioning as intended. To give you an example of why this has been the contract of choice, several years ago we had a client looking to purchase a condominium that had been renovated due to damages stemming from Chinese drywall. During the home inspection we found the granite counter top in the kitchen had been cracked in half around the sink during installation. The seller epoxied the seams, but the buyers were not pleased, as while the seam was cleverly joined with the epoxy, the joint was still very rough to the touch. The seller said he wasn’t going to replace the counter top and the buyer didn’t want to take it “as is,” so the buyer used their right during the inspection period to cancel the contract and get a full refund of their deposit. When speaking with the law firm who suggested we use this purchase agreement, the attorney stated, “this is why we tell you to use this purchase agreement as while the buyer wasn’t pleased with the look of the repaired granite, it was still functioning as intended as it was supporting weight and wasn’t leaking, thus it was performing as designed. If your buyer hadn’t used this “AS IS” contract that we have suggested, they wouldn’t have had the ability to cancel their contract and receive a full refund of their deposit.”
However, during this market this “AS IS” contract is being used in a manner that wasn’t originally intended. Since homes have been selling at such a frantic pace, many buyers who are out of town are using this contract to purchase properties sight unseen, or only seen virtually. Then once they arrive they use their inspection period to determine if they want to continue moving forward with the purchase of the property or cancel the contract now that they are viewing the property in person. Some buyers have even submitted contracts on several properties, had them accepted, and then used their inspection period to cancel off those properties that didn’t appeal to them and keep the one that does.
To counter this approach many sellers are starting to request the contract with repair terms that can be capped be used as it takes away the buyers ability to cancel the contract in “the buyer’s sole discretion.” Since offers have accelerated at the pace they have due to low inventory levels, bidding wars are more commonplace, resulting in purchase offers where the purchase price cannot be supported by an appraisal. To avoid a contract being cancelled by the buyer due to the offer they made not being supported by an appraisal, sellers are now requesting appraisal contingencies to be removed from the contract in many cases.
The Joy of Summer, Fulfilling Our Goals and Dreams
If you are like me, it seems the older we get the faster life appears to be passing. Oftentimes I find things I recall as happening a year or two ago occurred three or four years prior and I sit amazed at how quickly those years passed. Recently I’ve lost a few close friends and have others who are struggling with health issues and it seems the reoccurring comment I hear is, “don’t take life for granted and stop putting off your goals and dreams another day.” Even those not going through any kind of challenge have shared with me their desire to live a more fulfilling life. I then think of a comment Pastor and Televangelist Joel Osteen once said that has resonated with me, “There are many great books and inventions lying in cemeteries that never came to fruition!” “Is this my time to finally give myself permission to set time aside to fulfill my desires?” More importantly, “What legacy do I leave my son when he never sees me fulfill my goals and dreams?” The quote attributed to Walt Disney, but is presumed to be said by Disney Imagineer Tom Fitzgerald, “If you can dream it, you can do it,” has recently taken on a whole new meaning for me. “Why do I find myself always in front of my computer when not with clients showing property?” When we first moved down from New York 22 years ago we went boating, played tennis and golf, visited the beach, and started writing a book that I have yet to finish. “What happened? Why am I not permitting myself to set time aside to enjoy those simple pleasures before it is too late and I can’t enjoy those moments to their fullest? Why am I reflecting on past memories and not making new ones?”
I have always been a “summer kid,” at heart. Summer was a time when everything came alive and those memories have been frozen in time and seem like they just occurred yesterday. Simple things like bike rides, trips to the beach, days spent boating and exploring new areas by car were those simple pleasures that hold such as special place in my heart. Now I’m hearing friends of mine who are on the road fulfilling dreams of traveling the country this summer in an RV, something they never did before. Another special couple we know is cruising their way up the Intracoastal from Florida to New York and ultimately completing the “Great Loop” as they return via the Mississippi. They have been documenting and sharing pictures of their travels on daily postings where you feel like a stowaway on their great adventure. For some these adventures have been planned for months, for others, it has been more spontaneous. In contrast, my recent adventures by car have taken me to such exotic places as Costco and Trader Joe’s where I am mesmerized by fresh-cut flowers and displays of barbeque grills and patio furniture. “What happened to our boating trips to places like Tween Waters in North Captiva where we felt like we were on vacation, or our excursions to the beach and small towns along the way with their quaint shops and restaurants?” As for golf and tennis, Tiger Woods and Roger Federer have nothing to worry about as I’m not even sure which end of the racquet or club I’m supposed to grip.
I’ve often laughed at those who are looking to move to Florida who tell me how often they are going to go to the beach, enjoy boating, and playing as much golf and tennis they can fit between all their outdoor activities. When asked why I’m laughing I typically respond with, “Sure you are and before you know it six months will pass and you won’t believe how little you did those things, yet your life will seem so busy.” I continue by saying, “We fall into this “manana” mindset where what we don’t do today we feel we can always do tomorrow and before you realize it weeks and months have passed and you haven’t done many of the things that brought you here in the first place.”
Have I become my father who always looked forward to the weekend and then spent it admiring his handiwork trimming bushes and washing the car while others passed by on their boats or in their cars on their way to the golf course or to unknown destinations? If Covid didn’t have a way of taking stock in what’s important in life, certainly those daily reminders from friends saying, “I’m not putting off another day what I have been wanting to do all my life,” is something worth acting on.
Apparently my wife Gail didn’t think I was implementing this goal fast enough and took matters into her own hands and signed us up for a golf membership. Giving myself permission it was O.K. to put the computer aside for two hours I felt like a kid with a new toy as we had a fun-filled round where my wife showed me the finer points of using someone’s pool cage to have her golf shot land in the middle of the fairway! While I never learned that trick in junior golf, it made me realize all the special moments I was missing, and wonderful memories I wasn’t making.
Golf may be just the beginning of recapturing some of those lost opportunities I took for granted, and hopefully, soon I’ll finish that book I started to write so many years ago that gave me so much enjoyment. While I don’t know if it will be a best seller one thing is for certain, I’m going to make the most of this summer and start to enjoy pursuing those goals and dreams I’ve been putting off far too long.
-Gary Cardillo
“How can I get the seller to accept MY offer?”, buyers wonder in today’s heated, multiple-offer market
In some areas of the country, “love letters” – a note from buyer to seller praising the home – are common. But some of the letters may flirt with Fair Housing Act violations.
The National Association of Realtors® (NAR) Conference and Expo was held virtually in 2020, and many of the sessions involved discussions about buyer “love letters.”
For those who aren’t aware of what I am referring to, “love letters” are written statements that accompany a potential buyer’s offer. While these types of letters are not in and of themselves illegal, it’s important to note that if done without careful consideration, it could end up being a Fair Housing Act (FHA) violation.
How is this a possibility? Let’s examine a couple of examples of “love letters” – one that could be problematic with one that likely isn’t.
Example 1: A buyer drafts a love letter that includes how excited the buyer is to raise a family in the home. They can’t wait to see future children excitedly running down the stairs on Christmas morning.
Sounds harmless enough, doesn’t it? However, this buyer’s letter touches on two protected classes under the FHA: familial status and religion. Should a seller take these factors into account in arriving at a determination to accept the buyer’s offer, it could be a fair housing violation.
Example 2: A buyer drafts a love letter that discusses the buyer’s love of the homes’ architectural features and the buyer’s appreciation of the various details of the home’s construction.
Here, as the buyer solely focused on the property’s characteristics, none of which fall under a protected class, it’s likely not a fair housing violation.
As agents, it’s important to remind consumers about fair housing issues if you see a potential problem on the horizon. While no agent is expected to explain the legal nuances of the Fair Housing Act, it may be wise to suggest a buyer or seller consult their personal attorney if either of the respective parties veer into potential FHA violation territory.
Recently, I personally had a family with two young girls that were very excited about purchasing a home they had seen but knew the market was very strong and were afraid they would be outbid. Their daughters Lily and Hailey, sensing the seller could sell the home to someone else asked if they could write letters to be sent along with their parent’s offer. Little did these girls know the letters they wrote were compliant with the National Association of Realtor compliance guidelines, but they brought tears to the seller who accepted their parents offer.
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