Robert Snowden Zachary Realtor Ken Doss Realty

While showing a ten acre tract of land to clients, we were nearly attacked by neighboring dogs; not just any dogs, but a Pitbull and a Doberman. The dogs were behind a flimsy fence, left unattended and unleashed. We were walking along the fence line, when out of nowhere, came these two dogs charging at us while viciously barking. The pitbull was more aggressive, and tried launching himself through the fence. We turned and started to run, but noticed that he was only able to get half of his body through the fence.

Thank God he was only able to get half his body through the fence. It then occurred to me that I was not totally prepared for the showing.

Recently, as fate would have it, I was previewing a house for a client, when I encountered two rottweilers on neighboring properties. They were on both sides of the listed property, fenced in, unleashed and unattended. Both came running to their respective fences. Each time I attempted to walk from the back yard, they attempted to leap across the fences. I then stood still and did not stare them in the eyes. After about five minutes they calmed down. I then eased pass them and returned to my car and left the scene.

Since that time, I now carry mace on my most of my showings. I do not know if mace will deter any of these dogs, but it is better than having nothing. The ten acre tract did sell, but the house is still on the market. I do not know if the dogs are hindering the sell, but it would be a shame for these dogs to hamper or impede a potential deal.

We as Realtors advise our clients about controlling their dogs, but how should we approach our clients' neighbors? So, as you rush to show that next listing, be aware and careful.

The Advocate is reporting that the federal $700 billion financial rescue bill has a provision for property owners suffering damage from hurricanes Gustav and Ike. The losses can be claimed on personal income taxes. Here's a break down of key components of the provision:

• All damages that exceed $500 can be claimed
• There is no consideration for adjusted gross income
• The provision will end in 2010

According to the Advocate, in previous years a property owner could only claim damages that exceeded 10 percent of their adjusted gross income minus $100.

Under the old law, a family with an adjusted income of $50,000 could only claim damages that exceed $4900. For an example, if your house had roof damages totaling $7000, you could claim $2100.

Now, under the new law, property owners would be able to claim a loss of $6500.

My advice

For tax purposes:

• When in doubt, seek advice from a tax consultant
• As with any tax, I would advise that property owners keep good records and receipts for any repairs that are done.
• Take pictures of all damage and maintain them in a safe place.

For repairs purposes:

• Get references from friends and use the most reputable ones.
• Use licensed and bonded repairmen

This is not intended to be a comprehensive list of advice, I just want to get you started in the right direction for purposes of the provision in the Bailout Plan and some associated repair work.

Source of information: Excerpts from The Advocate, October 11, 2008. The numbers have been changed for clarity. Repair and tax advice, mine.

Here in Zachary, sales of new and existing homes through the third quarter of this year, decreased nearly 38 percent as compared to the same period of time last year. Check out the numbers for Zachary:

• 205 homes were sold through September 2008 vs 328 homes sold through September 2007

The 2008 sales are a dramatic drop from 2007. However, these sales are somewhat on par with pre-Katrina sales. Prior to August 2005, a total of 231 homes were sold in Zachary, 11 percent more than the same period in 2008.

Lets look at some other interesting numbers, such as days on the market (DOM) and average sales price. The DOM numbers are as follows:

• 112 days on the market through September 2008 vs 68 days from January to September 2007

These numbers represent a dramatic increase from just a year ago. Fewer homes were sold and those that were sold stayed on the market longer. During the months preceding Katrina the DOM was 108 days. What about cost? Here are a few more numbers to consider:

• In 2008 the average price paid was $224,819 vs. $222,807 price paid in 2007.

East Baton Rouge Parish Homes In Comparison

Home sales during 2008 in East Baton Rouge Parish decreased by only 18 percent when compared to 2007. Through August 2008, a total of 3351 homes were sold compared to 4105 sold during the same period in 2007. While overall sales decreased over the parish, EBRP realized a 56% increase in homes sold at or below $100,000. Zachary only had eight homes to sell under $100K.

It will be interesting to see what impact the recently enacted Stimulus package will have on local home sales. Zachary is a fast growing city, but if consumers can not secure loans, the future of real estate will remain gloomy. Let's wait and see and I will give a report. Hopefully, the news will be better.

-Sales Data obtained from Greater Baton Rouge Association of Realtors

Recently, I received a call from a close friend and client who wanted to know if the advice he received from a financial consultant was valid. The financial consultant advised him not to build a house at this point in his life (My friend is approaching 50 years of age). The advisor told my friend that it is not expedient to carry a mortgage well into retirement age; since my friend is fifty, a thirty-year mortgage of course, would carry over until he is eighty. Well, before I say what I offered as advice, here are a few facts about my friend. Both he and his wife are gainfully employed with excellent salaries and benefits. They have already purchased property for their "dream home", but have to sell their current home prior to building the new one. I admit that I am not a financial expert, but here are a few things that I asked them to consider prior to making that big decision:

1) Sell the existing home and invest the "cash out" into the new home. 2) Secure a fifteen-year mortgage, which will expire at age 65. Since most Americans are working to age 65, this will insure that the house is paid for right at retirement. 3) If the 15-year mortgage is not appealing, try a 20 year loan. Additionally, if a 30 year mortgage is chosen, both can be expired early by making extra payments toward the principle. The extra payments can effectively reduce the number of years that the mortgage is paid back and saving thousands. The reduction in years is dependent on the extra amount being paid. As many as eight years can be taken from the original mortgage by making an additional payment annually. Be sure that there is no penalty for early payoff. 4) Be sure to shop for the lowest interest rate available, regardless of an early pay-off or not. 5) Secure sufficient life insurance for both spouses. Sufficient life insurance would be an amount to cover the remaining mortgage in the event of an untimely death. 7) Should you choose to do a 30-year mortgage, be sure that retirement benefits can cover a monthly mortgage payment. 8) Pay out all other non-secured debts prior to the retirement years, so that the remaining income can cover house note and other financial obligations. 9) Invest in other income producing ventures, using returns to pay remaining mortgage ahead of retirement years.

Certainly, I advised them to go for it, because I know the professionalism that my friend posseses and his ability to manage finances. We only go around once, and everyone lives for that "dream home". But what about others facing this dilemma?