Friday, April 8, 2011
It's that time of year--Tax Time!
Property tax time that is! Each year at this time the city of Cedar Rapids mails out the annual assessments to its property owners. Any changes to your property valuation must be mailed out to you by April 15th. Here is an article to check out to see why your property valuation may be increasing, and as a result your property taxes as well. http://www.kcrg.com/news/local/Cedar-Rapids-Council-Quietly-Passes-New-Budget-Property-Taxes-Going-up-for-Homeowners-117630013.html In addition, you'll note in the article that the city has already implemented a 4.8% utility hike on your water/garbage/recycling bill. Also, if you'll look back not to long ago, Alliant was proposing at 14% increase in their utility rates, charged us 10% without IUB approval for a few months, and then the board finally approved at 9% increase. Not to ramble, but this brings me to my point--when you get your assessment bill, take a good look at it! Iowa Code 441.21 states that the assessment and taxation based on it must be reasonable, fair, and of market value. With the way values have been fluctuating in the real estate market in the last year, many assessments will probably be above market value. If you feel that your home has been unfairly assessed based on recently sold comparables, or that it is assessed unreasonably higher than those comparable homes around your neighborhood, there is something you can do about it! A homeowner wanting to contest their assessment must file an appeal with the City Assessor's office between April 16-May 5. It's gotta be hand delivered or USPS postmarked by May 5! Your appeal is then considered by a Board of Review consisting of 5 members appointed by the city conference board, who all serve 6 year staggered terms. There must be at least 1 real estate broker and 1 architect/expert in building trades. Here is the link to the application for your appeal. http://www.iowa.gov/tax/forms/56064.pdf Please let me know if you decide to file an appeal; I want to know how it turns out! I am always an advocate for making yourself more knowledgeable about processes such as this, because it makes you more aware of what policies are in place in our city and how you can challenge them. In case you didn't know, we're also being asked to vote on May 3 for a 20 year extension of the local option sales tax. My personal opinion (somewhat) aside, ask yourself how this city is gathering "revenue" to fund its budget and flood recovery and whether or not the over-taxation of its citizens will really create the sustainable growth we need for a 21st Century City?
Friday, February 18, 2011
Home Ownership Matters!
This is the 2011 slogan for the National Association of Realtors in a nationwide campaign aimed at reconnecting Americans to the truth about the value of home ownership and the American Dream. I've been reading a few articles and blogs on the topic and here's what I have to say about why home ownership matters.
At a time where policymakers and those in Congress are targeting the Mortgage Interest Deduction for the chopping block, it's important to evaluate why home ownership matters to us, our communities, and our country. To individuals, owning a home fosters feelings of control over your life and puts you on the path to financial stability. Owning a home is one of the best ways to build long term wealth. It's not a typical investment; each monthly payment is like making a deposit into a savings account. It also you to stabilize your housing costs. You're able to more effectively manage your monthly expenses because a fixed rate mortgage won't increase in the same way that a landlord can easily raise rent. In the absence of other popular tax incentives which have lured buyers into the market, the mortgage interest and property tax deduction remains a huge incentive to own a home.
Home ownership matters greatly to our communities because home owners who are rooted in their neighborhood are more likely to volunteer, report crime, and maintain the general upkeep of their property as well as community property. Another benefit of ownership is neighborhood stability. When families move less frequently their children's lives are more stable at home and in school. They are more likely to become involved in organized activities and have greater scholastic achievement. Home ownership strengthens our communities, in ways that cannot be exactly measured, but with long lasting benefits which are overwhelmingly evident to homeowners living in owner-occupied neighborhoods.
Lastly, home ownership matters to America. In the widespread cynicism about our economy, our government's involvement in the private sector, and our anger about Wall Street excess one thing has not changed. We, as a nation, still view the promise of the American Dream and understand that owning a home is a part of reaching this achievement. 67% of American households are owner occupied and we pay 80-90% of individual income tax. In addition, we're also paying property taxes which support our local governments. Don't we deserve the small break that the Mortgage Interest Deduction affords us? If the MID is taken away, think of how much this will actually impact the economy and our road to recovery. Each home purchase pumps approximately $60,000 into the economy via furniture purchases, home improvements, and other related items. Think of all the local business that is generated from one home sale--the inspections required, the repairs that get made before and after the sale. If the housing market is forced into another downturn, what will be the lasting repercussions?
Homeowners are a vital asset to our country. At a time where the need for re-vitalizing our neighborhoods and increasing community involvement could not possibly be greater, we need to stand together to defend home ownership and its value to shaping our great nation. Owning a home has been and continues to be a huge step in achieving our vision of the American Dream.
I welcome thoughts or questions on the topic. Why does home ownership matter to you?
At a time where policymakers and those in Congress are targeting the Mortgage Interest Deduction for the chopping block, it's important to evaluate why home ownership matters to us, our communities, and our country. To individuals, owning a home fosters feelings of control over your life and puts you on the path to financial stability. Owning a home is one of the best ways to build long term wealth. It's not a typical investment; each monthly payment is like making a deposit into a savings account. It also you to stabilize your housing costs. You're able to more effectively manage your monthly expenses because a fixed rate mortgage won't increase in the same way that a landlord can easily raise rent. In the absence of other popular tax incentives which have lured buyers into the market, the mortgage interest and property tax deduction remains a huge incentive to own a home.
Home ownership matters greatly to our communities because home owners who are rooted in their neighborhood are more likely to volunteer, report crime, and maintain the general upkeep of their property as well as community property. Another benefit of ownership is neighborhood stability. When families move less frequently their children's lives are more stable at home and in school. They are more likely to become involved in organized activities and have greater scholastic achievement. Home ownership strengthens our communities, in ways that cannot be exactly measured, but with long lasting benefits which are overwhelmingly evident to homeowners living in owner-occupied neighborhoods.
Lastly, home ownership matters to America. In the widespread cynicism about our economy, our government's involvement in the private sector, and our anger about Wall Street excess one thing has not changed. We, as a nation, still view the promise of the American Dream and understand that owning a home is a part of reaching this achievement. 67% of American households are owner occupied and we pay 80-90% of individual income tax. In addition, we're also paying property taxes which support our local governments. Don't we deserve the small break that the Mortgage Interest Deduction affords us? If the MID is taken away, think of how much this will actually impact the economy and our road to recovery. Each home purchase pumps approximately $60,000 into the economy via furniture purchases, home improvements, and other related items. Think of all the local business that is generated from one home sale--the inspections required, the repairs that get made before and after the sale. If the housing market is forced into another downturn, what will be the lasting repercussions?
Homeowners are a vital asset to our country. At a time where the need for re-vitalizing our neighborhoods and increasing community involvement could not possibly be greater, we need to stand together to defend home ownership and its value to shaping our great nation. Owning a home has been and continues to be a huge step in achieving our vision of the American Dream.
I welcome thoughts or questions on the topic. Why does home ownership matter to you?
Thursday, February 3, 2011
7 Ways to Create a Cohesive Style
Whether you're getting ready to put your home on the market or you just want a more fluid sense of style throughout your home, here are seven ways to achieve this goal.
1. Focus on the rooms with the most impact: Kitchens and Baths
First and foremost, you spend most of your time here, am I right? Kitchens and baths are the rooms where you will see the greatest return on your investment. If these rooms are outdated or have non-functioning aspects, they will stick out like a sore thumb to potential buyers. Why not plan some cost effective upgrades now and get a little enjoyment out of these spaces?
2. Go Neutral
I cannot overstate this enough! Too much color may not only be undesirable, but it distracts the eye from the great features your home has to offer. Regardless of whether buyers will re-paint once they move in, they may not be able to see past it enough to write the offer. Using neutral colors, or a palette that flows throughout the house is another way to make your home have a more cohesive feel for everyday living.
3. Consult an expert
Either your real estate agent, or another friend/relative with a keen eye can offer tips for making rooms less cluttered and more inviting. If your home is above a certain price point, you'll most definitely want to consult a home stager. But for most of us, it's just paring down the clutter and giving each room a focal point. With all the flipping and selling shows on cable these days, it's easy to go overboard. Remember less is always more appealing!
4. Know when inexpensive won't work
Know the price point for your area and what types of finishes buyers will expect for the price and size of your home. Especially with kitchens and baths, sometimes cheap replacements stick out more than just sprucing up what was already there. Most savvy buyers today can see past cheap quick-fixes and will not be willing to pay your asking price.
5. Find inspiration
Find your cohesive style by browsing catalogs such as Pottery Barn, Crate & Barrel, etc. These are free ideas for what styles are popular and color combinations that will work throughout your home. Glean ideas for low cost ways to make your home more inviting.
6. Plan your budget
If a contractor is needed for certain aspects of the job (like in the kitchen and bathroom) plan this work for the same day, ideally finding a contractor that can do all the work. Do all the prep-work in advance to make the amount of time the contractor has to charge you for, less. Be honest about your own plumbing and electrical capabilities too; it may not pass inspection down the road.
7. Compliment the architecture
I can't tell you how many homes I've been in where there are several different decades represented to varying degrees of undesirability. When someone sees a 2 story colonial from the outside and walks in to find a kitchen with dark wood cabinets and mustard yellow appliances, they somehow feel like they've traveled through a time warp. I understand that removing or updating a lot of 50s, 60s, and 70s decor is time consuming and rather expensive. But chances are, buyers are looking at your particular style of home because they like the original architectural features of that era. When certain rooms of the home feature styles incongruous to the rest of the home they are a definite distraction to the buyer. My best advice is if you purchase a home with some of these "unique" features, plan on updating it prior to re-selling it. It will not only improve your resale value, but create a more cohesive style of home that will attract the right buyers willing to pay the right price.
Thanks for reading! If you'd like further information on the rate of return for your home improvement projects, check out www.costvsvalue.com and select your region.
*7 main concepts courtesy of Realtor Magazine, all other ideas expressed are original to the author
1. Focus on the rooms with the most impact: Kitchens and Baths
First and foremost, you spend most of your time here, am I right? Kitchens and baths are the rooms where you will see the greatest return on your investment. If these rooms are outdated or have non-functioning aspects, they will stick out like a sore thumb to potential buyers. Why not plan some cost effective upgrades now and get a little enjoyment out of these spaces?
2. Go Neutral
I cannot overstate this enough! Too much color may not only be undesirable, but it distracts the eye from the great features your home has to offer. Regardless of whether buyers will re-paint once they move in, they may not be able to see past it enough to write the offer. Using neutral colors, or a palette that flows throughout the house is another way to make your home have a more cohesive feel for everyday living.
3. Consult an expert
Either your real estate agent, or another friend/relative with a keen eye can offer tips for making rooms less cluttered and more inviting. If your home is above a certain price point, you'll most definitely want to consult a home stager. But for most of us, it's just paring down the clutter and giving each room a focal point. With all the flipping and selling shows on cable these days, it's easy to go overboard. Remember less is always more appealing!
4. Know when inexpensive won't work
Know the price point for your area and what types of finishes buyers will expect for the price and size of your home. Especially with kitchens and baths, sometimes cheap replacements stick out more than just sprucing up what was already there. Most savvy buyers today can see past cheap quick-fixes and will not be willing to pay your asking price.
5. Find inspiration
Find your cohesive style by browsing catalogs such as Pottery Barn, Crate & Barrel, etc. These are free ideas for what styles are popular and color combinations that will work throughout your home. Glean ideas for low cost ways to make your home more inviting.
6. Plan your budget
If a contractor is needed for certain aspects of the job (like in the kitchen and bathroom) plan this work for the same day, ideally finding a contractor that can do all the work. Do all the prep-work in advance to make the amount of time the contractor has to charge you for, less. Be honest about your own plumbing and electrical capabilities too; it may not pass inspection down the road.
7. Compliment the architecture
I can't tell you how many homes I've been in where there are several different decades represented to varying degrees of undesirability. When someone sees a 2 story colonial from the outside and walks in to find a kitchen with dark wood cabinets and mustard yellow appliances, they somehow feel like they've traveled through a time warp. I understand that removing or updating a lot of 50s, 60s, and 70s decor is time consuming and rather expensive. But chances are, buyers are looking at your particular style of home because they like the original architectural features of that era. When certain rooms of the home feature styles incongruous to the rest of the home they are a definite distraction to the buyer. My best advice is if you purchase a home with some of these "unique" features, plan on updating it prior to re-selling it. It will not only improve your resale value, but create a more cohesive style of home that will attract the right buyers willing to pay the right price.
Thanks for reading! If you'd like further information on the rate of return for your home improvement projects, check out www.costvsvalue.com and select your region.
*7 main concepts courtesy of Realtor Magazine, all other ideas expressed are original to the author
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