Even in today's tough real estate market, I do not believe that I should universally expect to receive low offers on every listing. It seems that there is still a large segment of the market that feel they can throw out a low offer on any property and it will stick. Not true.
Real estate is local. Not only will states and counties vary widely on supply and demand and buyer/seller expectations, but also within any locale, there are always going to be homes within high demand neighborhoods with low inventory which will sell more quickly, and which will not be as negotiable on pricing.
For example, in Ada County current statistics show that in the past 3 months homes sold at 74% of their original list price. However, that single statistic will incorporate the highly saturated and hard hit areas of Eagle and Meridian and can clearly not be used in every area of Ada County as a rule of thumb.
Taking the analysis further, within Ada County we have an area classified in our MLS as Southeast Boise (Area 0300). For all areas of Southeast Boise, sales in the past three months reflect that on average, homes are selling within 85% of their original list price.
Breaking down the analysis again, within southeast Boise there are three distinct zones (the southeast rim near Micron--which we will call Area A, the neighborhoods surrounding Boise State University--Area B, and the neighborhoods around Gekeler Avenue, Boise Avenue and Parkcenter Boulevard--Area C). The homes in Area C are the most desirable in Southeast Boise and not at all comparable in value to the other two areas.
Buyers seeking homes in these neighborhoods within Area C are attracted to the high quality schools, the proximity to the Boise Greenbelt, River and parks, and the 5 minute commute to Downtown Boise. On average, the homes in this specific area have sold within 90% of their original list price for the last three months of sales. (Important to note is that not every property is average, nor are all properties priced appropriately. Hence, buyers should not expect that every house within Area C can be discounted to 90% of the list price, but is used to illustrate that not all areas/neighborhoods are created equal).
The desirability of location is going to equate to lower turnover within these neighborhoods because sellers can't replace the lifestyle (low supply)...in turn, discriminating buyers who will pay more for these amenities and have fewer homes to choose from (high demand).
As a buyer's agent, if you do not understand your market data and buyer/seller dynamics of specific neighborhoods, you are setting your clients up for failure and they are likely to be very disappointed when a seller does not take their low offer because they thought they could discount the property 25%. If a buyer is only looking for "the deal" that can be found, submitting highly discounted offers in high demand/low supply neighborhoods is not likely to result in a happy ending.
Buyer's agents are as much at fault as the buyer submitting terrible offers if they haven't properly educated their client and set realistic expectations. Pulling comparable sale data (when analyzed in conjunction with available inventory and historical trends) is still the best way to assess value. Comparable sale data should resemble the subject property as closely as possible in the quality of the neighborhood and proximity to desirable amenities, individual neighborhood amenities, age of home, size of home, and construction of home (i.e., two story homes should not be used in analyzing single level properties if at all possible to avoid).
Agents should pay close attention to making reasonable adjustments in comparing the properties, being precise in adjustments for differences in square footage, numbers of bathrooms, fireplaces, size of garage, age of house, seller improvements, landscaping improvements, deferred maintenance items, etc. If the market is declining, appropriate adjustments should be made in the analysis based on trend data. Making accurate adjustments comes with experience, but local appraisers are invaluable if you're not sure how to make adjustments.
You can help your buyers have realistic expectations by helping them understand value in any segment of the market within the context of accurate sale data. Not only will it keep your buyers from being disappointed with the process, but will help you negotiate a better deal on their behalf.
____________________________________________________________________________________________
Please feel free to visit my website at www.BoiseBeautiful.com for more information about real estate in Boise, Meridian and Eagle, Idaho or any of our buyer and seller services. Lee Hill and Eva Hoopes are partners in real estate, specializing in helping buyers and sellers from all walks of life. We represent buyers and sellers in Ada County in Idaho with an emphasis on the communities of Boise, Meridian, and Eagle, Idaho. To view properties for sale, including homes, land and investment property in our area, please feel free to search our website database. Search for properties using an interactive map along with a multitude of other search criteria. The database includes over 95% of all listed properties in Ada County, Boise, Meridian, and Eagle.
How do I Appeal My Ada County Assessed Property Value?
In Ada County in 2008, I personally saw an increase in property assessments (including my own properties) where in reality property values were declining. Without significant adjustments in the assessed property values this year, I would expect there will be many homeowners appealing their county tax assessment. If you would like to appeal your Ada County property tax assessment, included below is a general overview of how properties are assessed and how to properly post your appeal.
For the current tax year, the assessments will go out to all Ada County property owners approximately the first week of June in 2009. The value placed on the property is as if the property was assessed (appraised) on January 1, 2009.
The Ada County assessor (appraiser) is required by state law to place current market value on all taxable property each year*. The value is determined by an appraisal process which includes analyzing construction costs and reviewing recent sale data (typically retrieved through the MLS, but which may also be retrieved through area Realtors® and/or appraisers).
Once you've received your property assessment, if you feel that the assessed value is too high based on valid market data, you may appeal the assessment by the 4th Monday of June at 5:00 pm. The process requires that you file an appeal with the Ada County Board of Equalization (note: this process will not address the mill levy rate of your area, only the assessed value of the property).
Unfortunately, many homeowners are just now noticing that their 2008 assessments were excessive, but they are too late to file an appeal as the deadline to file an appeal was June of 2008.
The form for property tax appeals is linked below.
http://www.adaweb.net/Portals/0/Treasurer/Documents/Appeal_000.pdf
An Ada County Realtor® can help you determine approximate value and should be able to supply you with comparable sale data to support your appeal; supplying comparable sale data or an analysis prepared by a Realtor® is one of the best ways to support your appeal. We have helped many of our clients in the past with comparable sale data to support their property tax appeal and we're happy to be of assistance.
Also, if you'd like to know how the Assessor looks at distressed sales (i.e. foreclosures and/or short sales) in the context of establishing market value, the article below was well written and illustrates the impact of said distressed sales in a real estate market.
http://www.adaweb.net/LinkClick.aspx?fileticket=rsr3Yd9cck4%3d&tabid=57
As an aside and because this question also arises frequently, Ada County Property Taxes are always paid in arrears. Once the property is assessed, the actual tax bill for the first half of 2009 (January - June) won't come out until November with the first half due December 21, 2009. The second half of 2009 (July - December) taxes are due in June 2010.
__________________________________________________________________
* Robert H. McQuade, Assessor, Ada County Assessor, Accessed on March 19, 2009.
< http://www.adaweb.net/Portals/0/Treasurer/Documents/Appeal_000.pdf>
Please feel free to visit my website at www.BoiseBeautiful.com for more information about real estate in Boise, Meridian and Eagle, Idaho or any of our buyer and seller services. Lee Hill and Eva Hoopes are partners in real estate, specializing in helping buyers and sellers from all walks of life. We represent buyers and sellers in Ada County in Idaho with an emphasis on the communities of Boise, Meridian, and Eagle, Idaho. To view properties for sale, including homes, land and investment property in our area, please feel free to visit our website. Our MLS database can be searched using an interactive map along with a multitude of other search criteria and includes over 95% of all listed properties in Ada County, Boise, Meridian, and Eagle.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
