Both Ag and Residential will be subject to equalization by the State of Iowa but start preparing now. Contact a Realtor or an Appraiser if you think you assessment is incorrect (you will have it by April 15th). A Realtor can do a CMA (Competitive Market Analysis) and an Appraiser will appraise your property - both can show what the fair market value of your property actually is. This is very important because this amount is the one you should be taxed on.
The assessors will notify you by April 15, and you will have until May 5 to appeal the new assessment. To appeal you will need to be armed with facts that show your home has been assessed higher than the actual fair market value to get the taxes reduced.
Pay your fair share, but don't you work too hard to give your money away?
So what, you say - well if your home isn't a lake home priced over $400,000 and it's been on the market for a while (over 60 days), without an accepted offer something is wronge- we are in a Sellers Market. It could be you are not correctly priced - how do you know if you are priced right? That's where your agent's skills and the CMA (competitive Market Analysis) come in to play. CMAs have to be accurate to be of any value - that means:
- Properties used in the CMA must have sold within the last 12 months
- Properties used in the CMA must be of similar structure and square footage
- Properties used in the CMA must be in the same area/town your home is located
*Incidentally this process is very close to what the bank's appraiser will use
What's that? Your agent didn't do a CMA to guide you as to where you should price your home, they asked you what you wanted to list at?
YOU ARE IN BIG TROUBLE unless you guessed really good, and chances are you didn't.
Let me share with you what will happen when I show your property to one of my buyers
- If my buyers are interested in making an offer on your property I will do a CMA to make sure your home is priced correctly for the market - I use all the criteria above. I do this because I am looking out for my client's best interests.
- If my CMA doesn't produce a listing range that includes your home price, I will call your agent and ask them for the comparative properties they used in their CMA to arrive at the price they listed the home at.
- If they say, "I didn't do a CMA, I just listed it where the sellers wanted to be or if they give me bogus properties (those that don't fit the proper criteria) I discuss that with my Buyers
- I recommed they do one of 2 things - first walk away because you (the seller/s) are not serious about selling or second we make an offer including the CMA I did to backup our reasoning.
- If I have a Buyer who loves your house and decides against the CMA results and recommendations to offer higher than the CMA results You may be in even bigger trouble trouble - if my Buyer needs financing (about 99.9% do) the bank will do an appraisal and use nearly the same criteria I used in my CMA.
- If the bank decides the house is not valued at what my Buyers offered, they won't make the loan - result - no sale.
Don't risk a no sale, or no offers on your home - you are paying a lot of money to be represented by a Brokerage, get your money's worth.
Personally, I won't take an overpriced home. Why - because basically the agreement you have with me is an employment contract, you are hiring me to do a job - sell your home. I can't perform on that contract if you insist on pricing it unrealistically. Even if I could sell it, there is a good chance the bank would not agree with the price and not loan on it and now there are 4 unhappy parties - you the Seller, me the listing agent, the Buyer and their agent.
It is really simple, I won't list a home too high just to get the listing and then later figure I can drop the price, to me that's an unethical practice. It is also an ethical practice to the National Association of Realtors.
Check out the NAR Code of Ethics and Standards of Prcatices
Take home - choose your Realtor very carefully, you are paying a lot because your agent has a lot of work to do. Let them do their job and insist that they do the research to help you position your home to sell.
As you know I am a landlord (par excellence, I might add) and I have been frustrated with the existing mish-mash system so I have a solution. Best of all it is free to local residential landlords!
My real estate website www.SLRealtyCheck.com is building a page with all local landlord info, if you would like to be added send me the following information:
- Your name, phone number and email if you want to receive requests online ( yes, you need to check it more than once a month!)
- Location of rentals (Alta and Storm Lake only)
- Types of rentals, ie houses, apartments, acerages, bedrooms and baths
- Pets and smoking - allowed or not
Georgia Weaver, XXX-XXX-XXXX, Georgia@SLRealtyCheck.com
Location - Alta
Types - 3 apartments(1-2Br, 2-1Br, 1 ba each) 1 house (3-4 Br, 1.5 ba)
No pets or tobacco any of our properties
1 Bedroom Apartment - $391
2 Bedroom Apartment - $512
3 Bedroom Apartment - $614
How does your rent stand up to those numbers?
Farmers are getting top dollar for corn and soybean they can afford to buy land as it comes available. Few real estate investors, who aren't already crop farmers, are investing in ag land. I believe the reasoning for this is the amount of knowledge required to know what type of land you are buying and how to rent it if you don't farm it yourself.
A previous post noted the number of homes available in Aurelia, if you would like to do a little real estate investing it may pay to take a drive.
My answer, "Simple rules of supply and demand." " Lake property is in short supply, houses on lake property in our area are in short supply, short supply and high demand push up price."
Lake houses are expensive, but they do sell, so in my opinion they are not priced too high. Correct pricing is critical to selling a home, lake properties can stay on the market longer than other homes but part of that is due to the limited number of buyers in that price range.
This site has a lot of tools including a property analysis spreadsheet I just ran 2 commercial bulidings through. I was so impressed with the results I printed them and used them to take to the bank as part of my proposal. Check it out, and get ready to be amazed!
Fact: Aurelia has a large number of homes for sale - some are deals
Fact: A new ethanol plant going in between Alta and Aurelia - need housing for construction people
Fact: New plant will bring in some personnel but hire most locally (if previous plants are any indication)
Fact:Major growth in Storm Lake - AWAYSIS project, King's Point Resort, new marina, Little Storm Lake improvement, .......
See any opportunity?
The Storm Lake and Alta market are both seeing activity, it is a Seller's market currently with more buyers than sellers.