“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Matt Grohe CRS, GRI, ABR

Matt Grohe CRS, GRI, ABR

Blog_tag

Foreclosures drag down home values in Des Moines, but not assessments

09-08-09
Matt Grohe CRS, GRI, ABR

For the first two years of the real estate market slowdown our local paper, The Des Moines Register did a pretty poor job of accurately reporting on the housing crisis and its effect on the local economy. This year however it has been putting out some pretty good stories about how the Des Moines market has been affected. Two recent articles that did a great job of not glossing over the facts and showing the depth of the issue were Karen Mraceks September 4th piece Defaults, Foreclosures send bank holdings soaring, and Donelle Eller's top of the fold front page story Sunday September 6th Foreclosures Seen Hurting Home Values.

Donelle Eller's story was complete with a graphic showing foreclosed properties mapped out across the county. It added a very visual dimension to a subject that is often treated only with line type. On the map one could see huge clusters of foreclosed homes in certain areas, but one could also see that the problem really covers the entire metro area and suburbs, not just traditionally blighted inner city areas. Some key points cited in from the article from local and national sources were (quoting):

"Foreclosed houses in Iowa will reduce the value of 317,552 neighboring homes by $323 million this year"

"Foreclosed homes, mostly sold by banks after a sheriff sale, accounted for about 9.5 percent of last year's $4.5 billion in Iowa home sales. So far this year, foreclosed homes account for about 8.3 percent of Iowa home sales, compared with 3.4 percent two years ago"

"About 15 percent of all Polk County home sales from January through July were of homes owned by lenders. In Dallas County, the sales were 12 percent."

"Lender-owned homes typically were sold about 35 percent below market value in Polk County from January through July, and 22 percent below market in Dallas County."

"The gap between the market value and the sales price is the largest on properties selling for $150,000 and less - ranging from about 20 percent to 60 percent below market values, 2009 data from the Polk County assessor's office show."

"Nearly 130 lender-owned homes in Polk County and 29 in Dallas County sold for less than $50,000. The lower-priced sales made up about 30 percent of foreclosure sales in both counties"

An interesting fact that I learned from the article was that, quoting, "Distressed sales may be considered when private appraisers determine a home's market value to secure a mortgage, but excluded when the assessor considers a home's value for tax purposes."

So, foreclosures drive down market values, the price a home actually sells for, but that reduction in value does not give you a break on your property taxes! I'd call that a quadruple whammy: Lower values due to foreclosures, increased competition for buyers from foreclosed homes, less equity for homeowners from appraisals, no benefit to homeowners affected by lower values in the form of reasonable taxation. I'm sure there's a really good reason why the assessor won't consider foreclosed homes when determining your tax bill. I'm sure there is.

All rancor aside, the Register has been putting out some good information for the public this year despite massive layoffs and scathing cost cutting. It's no fun for anyone to read these things but it's better than having the reality swept under the carpet. Lets just hope the recovery we're all hoping for is on its way. Property owners in Polk County would love to see it.

9 Comments
Blog_tag

Des Moines School Board Election Tuesday September 8th 2009

09-07-09
Matt Grohe CRS, GRI, ABR

Well it's that time again. Time to close the pools and elect four new members to serve four year terms to the Des Moines school board.

Since Des Moines has a fairly large district with 30,783 students anda budget of appx. $420,650,000 funded by local residents and homeowners, it behooves the general populace to get involved by participating in the selection of school board members.

This time around three incumbents are fighting to remain in their seatson the Des Moines School Board: Connie Boesen, Patty Link, Teree Caldwell-Johnson, against 6 challengers: Margaret Buckton, Felipe Galardo, Timothy Halsted, Veola Perry, Thalia Sutton, and Zachary Toillion, whom you can read about by following the link.

The board members elected on September 8 will serve four-year terms, new for the first time since the state law recently passed requiring four-year terms. As a result, school board elections will be held every two years thereafter.

Polling places will be open from 7 a.m. to 8 p.m. on Sept. 8. Information for voters, including polling places, can be found here. Several other municipalities will hold elections for board members and or referendums for spending the .01 cent sales tax and various public measures. See the ballots here.

This year you can register and vote the same day at the polls. I will be serving as Precinct Chairperson at Precinct 75 in Des Moines at 2501 Park Ave. this year along with Shirley and Delores with whom I have worked several elections. One of them always brings some yummy baked goods and they are both lots of fun to work with and to talk to. Should be a great day. See you at the polls!

0 Comments
Blog_tag

Sheriff says 2009 to be another record year for foreclosures

09-02-09
Matt Grohe CRS, GRI, ABR

Recently I had the honor of being accepted into the 5th joint Polk County Sheriffs-Des Moines Police Department Citizen's Academy. Tonight, September 1st marked our first session and if tonight's any clue, it's going to be very informative and a lot of fun. Our class of 32 members came from all walks of life: cooks, retirees, counselors, salespeople, homemakers, college students, factory workers, professors, and many others.

This evening we met with the Chief of Police, Judy Bradshaw, the Polk County Sheriff Bill McCarthy, and several other members of the academy staff. Chief Bradshaw is very well spoken and extremely adept at handling potentially thorny and contentious questioning. Sheriff McCarthy came up through the ranks of the DSM PD and was effusive in his praise of the Chief, Des Moines, and the department in general. It was great to meet these folks and not have to be arrested, plus I learned a lot.

Of course the topic of real estate came up as it always does somehow. Tonight it came up in Sheriff McCarthy's discussion of his duties as Sheriff. He ruminated on how many of his duties do not directly involve criminal affairs and that a growing demand on his time is from civil matters such as sheriff sales and garnishments due to the struggling economy. He made the comment that last year was a record for his department in dealing with foreclosed homes and this year was set to equal or exceed last year. He made a very poignant remark in that the economy wasn't really getting that much better in his opinion but that people was just getting used to times not being as prosperous as they had been in the recent past.

The class will continue every Tuesday night for nine weeks. Unfortunately I will miss next Tuesday the 8th as I will be the chairperson for DSM Precinct 75 for the 2009 school board election. There are many good candidates so if you're in Des Moines be sure you are registered so you can vote!

1 Comment
Blog_tag

When the power's off, the water can rise

07-18-09
Matt Grohe CRS, GRI, ABR

With the rise in foreclosed and abandoned homes in this area we are beginning to see many homes with water damage in the basement. Sometimes you also see it on normal resale homes. The culprit is often an overflowing sump pump pit caused by a power loss. The damage can be extensive and costly, but can be easily avoided but installing a battery backup in case of power loss.

I have had a listing that I was very excited to get my first showing on this week. I called the seller, got voice mail and informed them of the time I would be by. I met the prospect, looked at another home first, then headed over to my listing. Surprise! The seller had abandoned the home and looked to be in the process of moving everything out.

We looked around the first floor and they really liked it. They were very impressed by the upgrades and layout. The big shock came when the husband went down into the darkened basement and stepped in a half foot of water. Apparently the seller had shut off the power, to save a few bucks, and the sump pump had shut off, totally flooded the basement, swamped the furnace, and most likely ruined everything they had stored down there. A shame because the prospect had above a passing interest.

I think I'm partly to blame for not educating them about a battery back-up system which they lacked, but also for not educating them on the possibility of what can occur when the power gets shutoff and there is a sump pit.

I immediately called the seller, at about 7pm, and left several messages. When I had not heard back by the next day at 4pm I called again. This time I got an answer. I sensed regret but was so taken aback by the seller's flat affect and by not being called that I informed them I was pulling my sign and delisting the property until the situation was remedied, and the seller disclosure amended. I told them to call me when they were ready, but I'm not very optimistic that will occur.

So, in the future I hope to avoid this by being very emphatic about the need for both a battery back-up and for the power to remain on whenever I see a sump pump that lacks a proper back-up system. It's a shame to see thousands of dollars of damage occur when a basic system can be had for around $100.

13 Comments
Blog_tag

The 50,000 mark, Passed!

07-16-09
Matt Grohe CRS, GRI, ABR

Yeah! Yes I am cheering for myself. Tonight I broke the 50,000 point barrier. Here's the breakdown:

Profile Points: 3,174
Invite Points: 0
Blogging Points: 22,965
Blog Comment Points: 22,975
Linking Points: 400
Bonus Points: 0
Other Points: 550

I was surprised to see that my blogging points and blog comment point are within 10 points of each other. That was totally unplanned. I've tried inviting new members but I haven't been successful as of yet. For the next 50,000 I plan to do more linking and work more aggressively to attract new members by invitation.

Most importantly however I've learned much that is helpful and relevant to my business. I've also been able to connect with others in my profession all across north America. It's been very rewarding and challenging as well to take the time to read other posts, research the tools and information provided and to challenge myself to produce better quality blog posts. The blog is still a work in progress, but everything always is: from me to AR to the industry to the universe itself. Thanks to everyone who has read and posted comments on my blog, I appreciate it! Yeah!

25 Comments