MAKING YOUR HOME WORTH MORE

True Market Value

Salesmanship

Showing The Home

How To Discuss Price

Objections

How To Counteract

Closing The Sale

Making Your Home Worth More

Before you consider what your asking price should be, emphasize to yourself that your home is going to be subjected to a very critical inspection. Home seekers shy away from a house that is only slightly in need of repair. It will be to your economic advantage to:

1. Make it more readily salable;

(2) Increase its sales value as much as possible.

EXTERIOR

When a home hunter drives by and sees your "FOR SALE" sign in front of your home, the home starts selling itself or hindering its sale. Getting him inside to inspect is your first hurdle because no one will buy a house without having first inspected it. To induce this essential entrance you must:

(1) Keep the lawn fertilized and watered, the shrubbery neatly trimmed, and the grass smoothly mowed and carefully edged;

(2) Remove from the grounds all trash, papers, leaves, and all other cluttering materials;

(3) Collect toys and garden tools scattered about your "FOR SALE" premises. If you cannot hide the toys entirely, put them in the nursery. Store the tools in an appropriate location and position them orderly; (4) Notice puddling, stagnation, corrosion, clogging and other drainage difficulties which tend to develop on most lots and to reduce their market values; take necessary corrective action, or suffer the depreciation;

(5) Take a critical look at your fences and gates. (Are they shabby? If so, either repair them or, when they are neither decorative nor really needed, remove them entirely.) (6) Repair holes in the driveway, or in other concrete, asphalt or masonry improvements;

(7) Paint and otherwise redecorate all surfaces which

reflect unfavorably upon the premises. (Peeling paint indicates poor maintenance.)

8. Look at that roof! If you see any broken shingles, or shingles of an off color from which leak repairs can be inferred, eaves, cornices, gutters or downspout needing attention, get them shipshape before inspection;

(9) Get in your car and drive up and down the road looking at it. If you see anything else that needs corrective action, fix it before you put up that "FOR SALE" sign.

INTERIOR

Now that your prospect has crossed the threshold, satisfied (we hope) with the outside features of your home, what are you going to show him on the inside? Your chances of realizing a satisfactory sale at a reasonable price will suffer if you show him any of the following:

(1) Faded or water-circled walls. (Redecorate with

pastel colors.)

(2) Scuffed or scarred woodwork. (Repair and re-

paint it.)

3. Worn floors. (Recover, or sand and refinish them.)

(4) Loose handrails. (Tighten them.)

(5) Sticking doors, windows and drawers. (Plane the binds and use a non-smearing lubricant where needed.)

(6) Leaky plumbing, including dripping faucets with water discolored enamel in tub or lavatory,

(7) Worn old-style kitchen or bathroom. (Remodel and increase your market value.)

(8) Dim lighting, or lighting equipment that will not

shine brightly when turned on, whether because of defective

switches, or wiring, smudged bulbs, or whatever it may be.

(9) Any kind of a defective lock, hook, catch, or other mechanical device, even though minor.

(10) Any accumulation of junk, including valuable possessions which look like junk or piles of rags, anywhere from the attic to the subbasement (if any). (Store personal property as neatly as you see it in first class department stores.)

(11) Overstuffed closets which appear inadequate because of the quantity of stuffing.

(12) Stairs cluttered with roller skates, or other tripping or unsightly objects.

(13) Glass in doors and windows obscured on the outside by age-old accumulations of smog and/or inside by domestic dust, soots and steam-borne greases from cooking utensils in operation. (Make money by cleaning them or having it done.)

(14) Venetian blinds with ragged tapes or dust-caked

slats.

(15) Wet basement. (Seal it or divert the leakage, if you can.)

(16) Have property inspected for termites.

(17) Just ONE innocent fleeing cockroach! Oh, brother! Etc.

Let me illustrate an "Etc:"

Once upon a time we lived in a nice home with three bedrooms, two baths, and a full basement, located on an average sized lot for suburban Washington. We found another house in a nearby subdivision situated on a much bigger lot, which we wanted. We had made all preparations, as aforementioned specifically, to sell our home. The neighborhood was desirable, the schools and public transportation were excellent, and the house was convenient to a large shopping center.

TAX CONSIDERATIONS

If the expenses you incur in making your home worth more are scheduled to comply with the deduction provisions of the internal revenue laws, you should deduct them from the profit you report as income on your income tax return.

TRUE MARKET VALUE

Of utmost interest to you as a potential home seller is how much money you can get for the place, or for your equity (interest) therein. There are many erudite definitions of market value, price and appraisal, but as a practical matter, the federal government's two big housing agencies, the Veterans Administration and the Federal Housing Administration, have so dominated the appraisal field for so long it is usually quite difficult to sell a home for much more than the appraised value as set by VA or FHA, or by a reputable independent appraiser.

Salesmanship

Do not misunderstand this section and reach the conclusion that this whole book implies that you should keep quiet continually, the following old story is very much in order to emphasize what you should not do:

An enterprising farmer, before leaving his first born sitting on the spring seat of a spring wagon loaded with hard to-sell apples, said, "Jody, you're a fool, talking your fool head off aller time. While I'm gone keep your fool tater trap shut so's nobody'll know you're a fool."

SHOWING THE HOME

Rules for showing the home to the prospect include:

1. During inspection, keep the number of persons present as low as is possible. (When several people are stirring around in a house, it is only natural for prospects to become uncomfortable and to feel that they are intruding.)

2. When it is dark outside--nighttime or dreary daytime--switch on the lights before any prospect appears.

3. Quiet all distractions so you can hear whatever comments your prospects will make. Keep all music, radios, Hi-Fi's, and TV's switched off.

(4) Have those adorable pets entirely out of the way.

5. Have the house well ventilated and, to the extent the weather permits, keep windows open. Run the exhaust fans to guarantee fresh air sufficient to dispel all staleness.

6. Clear kitchen sink and tables of dishes.

7. Store dishes, sparkingly clean, neatly on the shelves.

8. Spread all beds smoothly with freshly cleaned covers.

HOW TO DISCUSS PRICE

If you have had scant selling experience, the odds of success in selling your home will increase in your favor if you will establish a fair price and hold to it tenaciously. If a prospect makes a solid offer very close to your fair price, as a last resort perhaps a small deduction would be better than continuing your selling project.

OBJECTIONS

Many of your prospects will criticize, grumble, and object to various qualities of your home for sale. These objections will fall into two broad classifications: Insignificant, or unreal, and justifiable, or real.

HOW TO COUNTERACT A LOW OFFER

Especially when selling a house to be financed by obtaining a VA guaranteed, or an FHA insured, loan, you should insist upon selling it at its appraised value, but should you feel it expedient to cut your price, rules of procedure for such negotiating are as follows:

(1) Always hold your composure.

2. Control your tone of voice. (There is no reason whatsoever for changing it.)

3. Maintain the very best of manners--suitable to the host you are.

(4) Smile frequently.

(5) Recognize the fact that the home you are offering for sale is YOUR house and exercise your prerogative to establish and maintain the price at which you will sell it.

(6) Think out and thoroughly analyze your commanding position and price possibilities before your prospect appears.

(7) Do not make a snap decision. Be sure you have plenty of time to consider all phases of any change you may make in your price.

CLOSING THE SALE

CLOSE SALES AGREEMENT

When should you try to close the sales agreement? You have been setting the stage for closing ever since your prospect first appeared. You have been playing down their let-the-buyer-beware inclinations, as follows:

(1) You have created their confidence in you by presenting a home which proved your advertising was factual and fair.

(2) You have proved that your price is fair by an independent and equitable method. You have showed them VA and/or FHA and/or professional independent appraisal reports showing the fair market value.

(3) You have provided them with correct and complete information concerning the neighborhood, utilities, financing available, and all other relevant characteristics they could think to inquire about.

(4) You have induced cordiality by providing a hospitable and helpful attitude.

(5) You have not rushed your prospects during inspection, or in making a decision, or on qualifying.

(6) Your own self confidence and quiet enthusiasm are solidly based on your sense of honesty and fair dealing.

The Process

The Value Of Your Property

The Market Approach

The Equity Analysis Approach

The Cost Approach

The Income Approach

Illegal Assessments

Mechanical Errors

PROCESS FOR CHALLENGING TAXES

THE PROCESS FOR CHALLENGING YOUR TAXES

Step 1--Understand the process.

Step 2--Know the valid reasons for which you can appeal your taxes.

Step 4--Gather information to determine whether or not you should challenge your taxes.

Step 5--Analyze the data you have collected.

Step 6--Prepare your documentation for an appeal.

Step 7--Discuss your case with the local assessor.

Step 8--Present your case to the tax review board.

Step 9--Appeal to a higher court.

THE VALUE OF YOUR PROPERTY

Since an overvalued and overassessed property is one of the most common and most successful grounds for challenging

your tax bill, it is extremely important to have a clear understanding of just how valuation works. Establishing the proper value for your property often is the key to your appeal. To win your case on the basis of establishing your property's value at a level lower than the one the assessor used, you must demonstrate that value using one of the recognized approaches to value. Therefore, it is vital for you to have a complete grasp on how to value your property. Let's learn more about how property value is established. But first, here is a highly condensed definition of each approach to value:

The Market Approach

This method, which is sometimes called the comparative sales approach, is a comparison of the market value of your house to the market value of other homes of equal age, size, location, etc. Sometimes we refer to this as "obtaining comps." The market approach is, in general. the best approach to value and the one you should he using for your tax appeal.

The Equity Analysis Approach

This approach compares the assessed values of similar properties on a square footage basis. It can be used in the absence of current market data on comparable properties in your area, i.e., when there have not been any recent sales of residences like yours within a reasonable proximity of your home.

The Cost Approach

The cost approach is used in valuing residential. industrial, commercial, and special-purpose properties, or when no market data are available. It is an estimate of the cost to acquire an acceptable substitute for a property with the same utility and similar improvements.

The Income Approach

There is one other approach to value, known as the income approach. This method won't apply to most people looking for property tax relief, but it's good to know about in case you run across it during your researches. Generally, it is used for income-producing properties such as apartments or commercial office buildings. Income-producing property is typically purchased for investment purposes, and from the investor's point of view, earning power is the critical element that affects the properties value.

Illegal Assessments

An illegal assessment is one that should not have been made at all, or not in the manner in which it was made.

Mechanical Errors

Many times you'll find miscalculations, clerical errors, and plain mistakes in the tax records that are used to determine your tax bill. As discussed earlier, you will be checking for these types of situations when you inspect your property record card and other records used at the tax assessor's office. Here are some of the things you should do to check these records.

In Conclusion

If you have put forth the effort to properly analyze your property tax situation and you decided to appeal your taxes for valid reasons, congratulations are in order. You probably have won your appeal. You have beaten city hall-an accomplishment you may not ever have dreamed of or even thought possible.