Make Real Estate More Saleable without Lowering the Price
If you can lower your property taxes or your association fees, the new owner’s monthly costs will be lower, making your property more affordable, even at the same price.
Palm Coast, FL – June 16, 2008 – In addition to a mortgage payment (principal and interest) a prospective buyer’s monthly carrying costs include taxes, insurance, and association fees. These all factor into a buying decision. If you can reduce any of them, you can make your property more affordable.
The Property Appraiser does not set taxes. Elected officials do that. The Property Appraiser’s duty is to make sure that assessments are equitable and fair, that two like properties are assigned the same just value. But they don’t always have all of the facts. They only have the information from the deed.
Rental condos are usually sold furnished, meaning that the deed probably included the value of the furniture, but that value should not be included in the assessed value. Prove this, with documentation, and you may get a lower assessment. Recently, many property sales came with buyer incentives. Example: To entice buyers to purchase the remaining units in the Tidelands condominium project, Centex offered Ginn Hammock Beach Club and Ginn golf memberships valued at $60,000. For some, two-years club dues and association fees were included in the incentive. While included in the price, these items were not detailed on the deed. None the less, they should not be included in the fair value calculation. The only way the property appraiser will know is if you tell him (and provide documentation).
If your property is subject to HOA assessments, press your association board to be transparent in awarding contracts for landscaping, security, broadband, etc. Competitive bids should be required. Also, be sure they are pressing for collection of unpaid fees. If they fail to collect fees from other property owners, you may face a special assessment to make up the difference.
And don’t forget to keep your property visually appealing. If it’s vacant, consider engaging the services of a staging company. Ask you agent to suggest ways to improve the "showability" of your property. Hint: Family pictures on the refrigerator and every wall may have special meaning to you but are a distraction to prospective buyers. Sometimes a minimal investment in landscaping, or interior upgrades (carpet, paint, etc.) can return much more than their cost.
Anything you can do to reduce the carrying costs of owning property increases its value. It will take time and effort but the results are long lasting.
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