Charles Woodall

This article was originally posted on DothanHomeSearch.com

How is that for a sensational headline? Do you think the media is trying to influence your thinking?

This indeed was the headline of a post this week from the Birmingham Business Journal. As is usually the case though, the headline doesn’t really tell the story. Context is very important.

If you go on to read the entire piece, you will see that the 73% increase is from July of 2007. There was a small 11.5% increase over June, 2008, and it is important to note that the number of foreclosures in Alabama had actually been dropping slightly up until early summer.

Speaking of putting something in context, below is a link to an excellent analysis of the current housing “crisis”.

In my opinion, a more appropriate label would be “correction”. A couple of points to take away from this video. First, the State of California has more foreclosures than 40 other states COMBINED. Second, it really does seem that the only time we as Americans can be mobilized to do something is if we call it a crisis.

Hat tip to Bob Fortner (Raleigh Real Estate Talk) and Kathy Drewien (Property Lines Atlanta Real Estate) for the video

Tags: CNBC, housing+crisis, foreclosures

This article was originally posted on DothanHomeSearch.com

The new home market here in the Dothan area seems to be gaining some traction, after a dismal 12–18 month down period. There were 28 new residential construction permits issued in July, up from 21 in June. Here is the trend over the last twelve months. Inventory of new construction homes on the market is down, which is another sign of a turnaround. There are currently 215 new construction homes listed in the Dothan area MLS, down from 221 last month. The median price of these listed homes is $195,400, which is about $60,000 above the overall market median. There were 15 sales of new construction homes in July according to data from the Dothan MLS, with an average price per square foot of $101.45 and average days on the market of 133 days. If you have an interest in building or purchasing a new construction home, give me a call or use the contact form. As a Certified New Homes Specialist (CNHS), I have extensive training in the new home market and would be happy to consult with you on your real estate needs.

Tags: Dothan+real+estate, Dothan+new+construction

This article was originally posted on DothanHomeSearch.com

This historic marker is located just south of Dothan at the Florida State line, erected on the east side of the highway.

From the Historic Chattahoochee Commission website:

Southern Boundary of the United States, 1795-1819
Location: Located on Highway 231 at Ellicott's Crossing.
Marker Dedication or Erection Date: October 27, 1995
Marker Text:

On October 27, 1795, the United States concluded the Treaty of San Lorenzo with Spain, establishing 31 north latitude as the boundary between its southern territory and West Florida. Despite Spanish delays, commissions representing the two countries began the eastward survey at the Mississippi River. They passed this point in August 1799, and continued to the Chattahoochee River. They later abandoned the boundary survey east of the river due to persistent Indian attacks. The 381 mile survey became known as Ellicott's line in reference to Andrew Ellicott, surveyor for the U.S. commission.

Erected by the Houston County Commission, Dothan Landmarks Foundation, and the Historic Chattahoochee Commission, 1995.

Tags: Historic+markers+around+Dothan

It didn't get much coverage in the media, but Houston County quietly set property tax millage rates for 2008 at last Monday's county commission meeting. Rates for this year will remain the same as last year at 21.5 mills for the county assessment (A mill is equal to one-tenth of a cent). In 2007, there was an increase of two mills passed along to Houston County property owners to meet a requirement by the state of at least 10 mills for all Alabama public schools. Before last year, Houston County collected eight mills for local schools. Who gets the highest property tax bill every year in Houston County? Joseph M. Farley Nuclear Plant gets a bill for over $9 million every year. That is over 40% of all property taxes collected in the county last year.

So how do our property tax rates compare to other states? Alabama has some of the lowest property tax rates in the country, second only to Louisiana in median property tax rate per $1,000 of property value (Click here for the report).

This gives us a good opportunity to discuss how property taxes are calculated in here in Houston County. The surrounding counties of Dale, Henry, Geneva, and Coffee are likely calculated the same, but their millage rates may vary slightly. For our example, we will assume a property is homesteaded, or in other words, is the primary residence of the taxpayer.

The accessed value needed to calculate the amount of property tax due is figured by taking 10% of the appraisal value, as determined by the county. Next, multiply your accessed value by your total millage rate, which is 33 mills if you live in the city limits of Dothan, Ashford, Columbia, Gordon, Webb, Kinsey, Taylor, Rehobeth, or Madrid, or 28 mills if you don't.

Now let's do with math with a median priced home inside the city limits of Dothan.

• $133,000 tax appraised value X 10% = $13,300 tax assessed value
• $13,300 X 0.033 (millage rate from above) = $438.90 property taxes.
• Actually, you get to take off $49 on homesteaded property, so the total property taxes due would be about $390 per year on a median priced home.

For non-homesteaded property, multiply the appraised value by 20% instead of 10%, and don't deduct the $49.

As with anything the government does, there are lots of exceptions and exemptions. We'll try to cover some of those in a later post, but you can ask a specific question by commenting below if you like. Property is appraised in Houston County annually in late summer, before the tax year starts on October 1.