The tax assessor’s intention is to assess your home for the correct market value. We are a “non-disclosure” state so that means they only have the right to stand at the curb and guess the condition of the inside of the house. If you happen to be in the yard when the assessor comes by just remember you do not have to disclose anything. Also, when you buy a house the Borough sends the letter “Congratulations on your purchase, how much did you pay?” Please remember, you do not have to disclose. A second letter will come stating you have ten days to respond, BUT you don’t have to disclose!

The borough has no way of knowing if you have consistently made improvements over the years, if you have granite counter tops and 42″ cabinets, or if everything has been untouched for 30 years. This is where the saying, “Tyvek on the outside, granite on the inside comes from”. If you believe your taxes are too high then you can certainly appeal during the first quarter. If you just paid $230,000 and have an assessment of $190,000 then I highly recommend staying quiet.

During the past year I have seen property appraise nearly $100,000 higher than assessed value and I have seen $50,000 under assessed value. Since you know your home better than anyone else you just need to get a professional Realtor to help you in finding similar properties that have actually sold in the past six months. If you are putting your home on the market then you will also need to study the active homes every 2 weeks to make certain your house is staying competitive in price, the buyer’s are just buying one home so you better make sure yours is the best!

You might be thinking “I will just get an appraisal and know for sure”. That opens a new can of worms that I will save for another blog article

I am here to help. Just remember, ‘Don’t Buy a House Without Walz!”

One often overlooked question a seller should have is how much is being offered to the licensee that brings a buyer. I am sure no licensee would admit to it and I would like to think it doesn’t happen but what if there are 15 similar properties on the market, 10 of them are offering 3% to another licensee and 5 are offering 2.5%. Would that licensee representing the buyer show the properties that pay more or would they work harder at selling the property with 3%? I have marketed a single family home and offered 4% and can tell you from experience that it got shown many more times and in turn sold quicker and for full price. You sign up with one licensee but there are roughly 200 licensees in the Valley so odds would have it the buyer will have their own Realtor.

There are licensees in the Valley that charge 6% or more then offer 2.5% to other Realtors. The person that loses in that situation is the seller who may not even be aware what is happening. Another common situation is a realtor that will cut commission in order to improve their chances of getting the listing. They will list the house for 5% total and offer 2.5%. Depending on your particular home and the amount competing similar homes you may want to increase the selling side commission. You would offer 3% pay your licensee 2.5% for a total commission of 5.5%. At the end of the transaction you will be creating more demand and in turn you can settle on a better price which turns out to be more money in your pocket at the end of the day.

You can expect 45-60 days when things go smoothly and an extra $1,500 in “risk” money.  Once the buyer has an accepted offer they get an inspection ($490) as usual.  If they can live with the inspection knowing the house is being sold “as-is” then it’s on to the next step.  Instead of the seller ordering the well, septic testing, appraisal, and as-built at once the buyer does it  in steps.  You do one at a time so that if a test fails at least you are not out for the money on the other tests.  So you order a well, septic, water test next which takes about 10 days ($500).  Once that looks good you can order the as-built ($450) and finally the appraisal ($650).  If the appraiser requires repairs you sometimes need to get creative to remove those contingencies.

 The truth is you are not financing a great house for $70k.  It takes money to make money.  The best deals are cash deals without a lender.  Think about it.  There is a large pool of buyers that would love to finance a nice home for cheap.  Multiple offers ultimately raise the price if it’s too good to be true BUT if you have cash the pool of buyers is much smaller.  So you buy with cash, repair it, and then sell to that larger pool of buyers who are using financing.  By doing so you raise the demand and the price at the same time.

 There are lots of great financable deals in the form of short sales and sellers with high motivation plus equity, and even foreclosure just not under about $120k. So it is best not to limit yourself to just searching foreclosures.

 In all cases you need a Realtor who is immersed in the local market day in and day out.  They can help you avoid an area with low producing wells, poor water (I know a guy who can light his tap eater on fire!), even road expansions and homes with drug busts.  A great Realtor is hard to find so make sure you choose wisely.

 Remember, “Don’t buy a house without walz”.

Let’s look at an example of a way to win big by selling now:  You bought at the peak of the market for $200,000 and now your house is worth 8% less than when you bought it.  You sell your home for $186,000 taking a $14,000 loss.  Ouch.  Now you get to buy in the same market but instead you buy at higher price range like $320,000.  Well that higher end market has even less buyers for as many homes as are on the market and unfortunately for them they have seen an average of 12% depreciation.  Now when you buy that home you have a savings of $38,000.  After making your move in this market you can then “wait it out”.  Real estate has always come back over time and there is always money to be made in real estate. 

If you happen to already own a home in the $330k range do not be disheartened.  This same scenario works the same for you except you will see even bigger savings.  I personally helped a buyer this past year get a home for $650,000 that just a few short years ago sold for over a million.  He will stay comfortably in his high end home while “waiting it out” to cash in on his $350k+ savings.

This is just one example of how to come out ahead in this market.  There are many more ways if this one does not fit you well enough.  Call me today to discuss all the options and as always, “Don’t Buy A House Without Walz!”