Brian Vanderhoff's North Fulton Real Estate Blog

Homeowners are ready to make 2012 a banner year for remodeling and the latest cost-for-value research suggests that getting the most bang for every buck is more important than ever.
The Remodeling Market Index (RMI) hit a five-year high at the end of 2011, indicating that residential remodeling should continue to grow in 2012, according to panelists at a press conference at NAHB’s International Builders’ Show. After a slow start, home improvement spending is expected to trend up later this year, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. If this momentum continues to build during the second half of the year, remodeling activity is on course to end 2012 on a positive note.
However, consumers want to get the most for their money. A recent survey by Better Homes and Gardens released last week at the Home Builders Show found that consumers find it more important than ever to get the most value out of every dollar (61 percent in 2011, up from 56 percent in 2010), and will spend more time looking for bargains and deals in order to get the most value for their money (Up to 54 percent in 2011, from 52 percent in 2010).
Living space and the way it’s utilized also continues to be top of mind for consumers. In this latest survey, conducted in December 2011, consumers wished for a median square footage of 1,791 sq. feet, down from 1,846 sq. feet the year prior. There’s more attention given towards the aesthetic and function of a space, rather than the amount of space. They’re not as willing to invest in the bigger, but instead investing in what’s better. Affordability and efficiency - both in space and energy - rank topmost.
In terms of remodeling priorities for consumers, baths are outpacing kitchens. Bathroom remodeling stayed constant in 2011 and 2010 (31 percent) and kitchen remodeling was stable at 25 percent in 2011, compared to 24 percent in 2010.
Remodeling Magazine’s annual Cost vs. Value report for 2011-2012 found that the trend right now is replacement over remodeling-swapping out the old for the new rather than doing a total gut job, which can be much more costly. Exterior replacement projects-such as new garage doors and a new entry door-offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.
The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:
1. Replacing the entry door to steel
Estimated cost: $1,238
Cost recouped at resale: 73 percent
2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)
Estimated cost: $50,148
Cost recouped at resale: 72.5 percent
3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)
Estimated cost: $19,588
Cost recouped at resale: 72.1 percent
4. Garage door replacement
Estimated cost: $1,512
Cost recouped at resale: 71.9 percent
5. Deck addition (wood)
Estimated cost: $10,350
Cost recouped at resale: 70.1 percent
6. Siding replacement (vinyl)
Estimated cost: $11,729
Cost recouped at resale: 69.5 percent

Labels: Foreclosures, Home Remodeling, Home Sales, home sales report, home selling, Homeowners

It would be unrealistic to say that the real estate market is utterly rosy right now, but neither is it thorn-filled by any means. In fact, things are decidedly looking up: July got some good news, when the National Association of Realtors reported that pending home sales rose 5.2% from downwardly revised June levels, beating economists’ expectations. This is good news for both buyers and sellers.

While challenges still exist—for instance, getting the best price when selling, or securing financing when buying—there are some once-in-a-lifetime opportunities out there, and plenty of happy results can be had for both buyers and sellers. The key for both groups is to remain flexible, adaptable and diligent. To that end, here are some dos and don’ts for today’s buyers and sellers:

For Sellers:

DO’S
Be flexible. Often it’s the little things that push a buyer into the “yes” zone. If the buyer goes on and on about how much they love your icemaker, throw it in. If the closing has to be pushed ahead more than you expected, try to be as flexible as possible and pack the moving van a little quicker.

Clean up. One person’s prize doll collection is another person’s cluttered nightmare. Similarly, a living room filled with Beanie Babies could elicit a reaction of fear, rather than “Aw, how cute!” from a buyer. Put away any personal collections that not only cause clutter, but also make it hard for a buyer to see the home as his or hers, rather than yours.

DON’TS
Don’t be greedy. The market—not your emotions—dictates your home’s price. If comparables in the area, and several trusted real estate agents tell you your home is worth $400,000, you’re not fooling anyone by pricing it at $500,000—and you’re only doing yourself a disservice. Pricing it at market, even a little below, could generate a bidding war, and ultimately get you more money.

Don’t get personal. If you’re selling your house for a certain amount, and someone offers something much lower, don’t take this as a personal affront and refuse to counteroffer. Letting your emotions get in the way can potentially ruin the deal. What’s the harm in making a counteroffer?

Don’t procrastinate. In the current climate, you might be scared to try to sell your home, as you may have to face a lower selling price than you may have gotten before the recession. But remember, the house you buy might be even lower, commensurately. It’s all relative. So if you’re serious about selling, consider doing it now. Also, acting before the cold months come is a good idea, as the winter months are historically harder for home sales.

For Buyers:

DO’S
Get a home inspection. It’s important to hire a trusted home inspector to check out the house’s potential issues and problems. Don’t skip a home inspection because you’re afraid of what you might hear—many issues sound more serious than they actually are, and can be fixed easily. And if something deal-breakingly serious is turned up, as disappointing as that is, it can save years of heartache and financial outlay. Better to walk away from a clunker.

List your place before you look for another. If you’re truly serious about looking for a home, list your place first. In the current economy, banks want to make sales as uncomplicated as possible—and contingency sales, which can be very complicated, are often rejected.

Talk before you act. Don’t ever start a home search without a firm budget not only in mind, but literally written down. Mutually agree with yourself—or with your partner, if you’re buying with someone else—long before you start seriously searching. Going out of that zone because of a place you just “gotta have,” or are emotional about, could put you in dire financial straits later. You don’t want to buy a house that isn’t affordable for you, and then be worried about paying for dinner and a movie on Saturday night.

DON’TS
Don’t be a design snob. If someone’s enormous bathroom has wallpaper border containing frolicking kittens and pastel flowers, or a wall that’s a nuclear shade of green, we understand this can send you into style shock. But stand fast and ignore bad décor. Instead, try to envision the space raw. Besides, you can always redecorate once the home is yours.

Don’t make a silly offer. There’s nothing wrong with making an offer below asking price—it’s no secret that today, many homes are selling for under the asking price. But going 40% below the asking price may anger the seller. Some sellers, especially more emotional ones, won’t even bother counter offering an outrageously low offer. Feel free to make a deal—just don’t make an offer so low that you’ll be kicked off the table.

Labels: Forclosures, Foreclosed, foreclosed homes, foreclosed homes for sale, foreclosed land, foreclosed properties, foreclosure, Foreclosures, foreclosures for sale, Home Buyers, home buying, Home Sales, home selling, Homeowners, homes, homes sellers

Counties might be forced to raise taxes because so many homes have lost value

Property owners rushed to county tax offices around metro Atlanta on Monday to file paperwork showing the foreclosure crisis has cost them so much value that their taxes should be reduced.

The push to lower taxes with property tax returns threatens in coming months to reduce tax collections for already cash-strapped local governments across the state — or force local officials to raise property taxes during a deepening recession.

Officials in Clayton and Fulton reported lines of filers crowding offices Monday ahead of the April 1 deadline, contending their properties had lost value during what many folks are calling a real estate depression. The deadline for Gwinnett and DeKalb counties passed March 2.

Property owners in most Georgia counties have until the close of business Wednesday to file their returns. They will also be accepted with an April 1 postmark.

How to file

April 1 is the final day to file a property tax return and lower tax values for 2009. The deadline for 2009 has already passed for properties in Gwinnett and DeKalb counties.

Here’s who to contact or where you can go in Clayton, Cobb and Fulton:


Clayton County Board of Tax Assessors

Chief Appraiser: Rodney McDaniel

P.K. Dixon Annex 2

Second Floor

121 S. McDonough Street, Jonesboro, GA 30236

Office (770) 477-3285 Fax (770) 477-4566

www.co.clayton.ga.us/tax_assessor/index.htm


Cobb County Board of Tax Assessors

Phillip Y. Hogsed, Sr.

736 Whitlock Avenue, Suite 200

Marietta, GA 30064

Office(770)528-3100 Fax (770) 528-3118

e-mail: cobbtaxassessor@cobbcounty.org

www.cobbassessor.org/Main/Home.aspx


Fulton County Board of Assessors

Burt Manning, Chief Appraiser

141 Pryor Street, Suite 2052

Atlanta, GA 30303

(404) 612-6440 phone / (404) 224-0417 fax

www.fultonassessor.org/Main/home.aspx

Labels: assessments, Fulton County, Homeowners, Property Taxes

WASHINGTON -- Alan Greenspan, former chairman of the Federal Reserve, suggested Sunday that a tax break or other government financial help for homeowners facing the mortgage crunch would be the best political fix for the economy.

He cautioned against meddling with home prices or interest rates to address the housing problem.

Greenspan did not specifically call for a tax cut. Instead, he called for the government to apply money to the severe housing market slump. Such a cash infusion would typically come through a tax break or a new government spending program.

"Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this," Greenspan said during an appearance on ABC's "This Week."

Separately, Greenspan said he is concerned about signs of a resurgence of inflation.

"Core inflation is up. Wholesale prices had their highest increase I think in a generation. That raises the specter of stagflation again," said Greenspan, referring to a simultaneous stagnant economy and upward pressure on prices.

He said the Federal Reserve should "do what it has to do to suppress the inflation rates that I see emerging, not immediately, but clearly over the intermediate and longer term period."

Greenspan said a large number of people are in major financial stress, even when they've tried exceptionally hard to make their monthly mortgage payment. But some political solutions would only prolong their agony, he said.

"It's far less damaging to the economy to create a short-term fiscal problem, which we would, than to try to fix the prices of homes or interest rates. If you do that, it'll drag this process out indefinitely," said Greenspan, referring to his preference for a cash infusion to help homeowners.

Greenspan ran the central bank for more than 18 years. He has been criticized by some for keeping interest rates too low for too long after the 2001 recession.

He said -- as he did earlier in the week in another interview -- that he agrees with some experts who see prospects for a recession at about 50-50.

"Whether it's above or below (50 percent) is really extraordinarily difficult to tell," Greenspan said.

Greenspan said the key lesson the economy has provided lawmakers over the last 20 years is that inflation must be suppressed for sustained economic growth to occur

Labels: Financial Aid, Greenspan, Homeowners, Mortgage Rates