Posts Tagged ‘Homeowner Tips’

Protesting Your County Appraisal District’s Assessed Value

Friday, April 9th, 2010

Yes, it’s that time of year again in Texas – time to receive your property’s assessed value for the 2010 fiscal year.

If you own your property, you should receive your property valuation from your county appraisal district on or around May 1st.   It is quite possible that your assessed value will increase; or maybe not.  News articles are divided on the subject with predictions ranging from a 2% decrease to a 5% increase on average.  This year should be interesting, since the average price of single-family homes sold through the Austin MLS in 2009 was 2% less than in 2008.  Even the median price of homes sold was down 1% from 2008.  Since these are averages, some areas around Austin area fared better, and others worse.   [ but either way, I am SO GLAD that I am here in Austin instead of any other metro area in the U.S.! ]

But back to the topic; if you feel that the assessed value you receive is too high, you have until May 31st to send your protest to the county appraisal district.  As in past years, I am available to help you through the process of filing your protest.   To make the process easier and more understandable, here are a few suggestions:

First, keep in mind that your assessed value is not the same as the market value of your home.  Many people confuse the two terms, and it is likely that these two values on your property are different.  The county does not evaluate comparables or perform a market analysis on every home, which is what I would do in giving you the market value of your property.  The county simply values your property according to the area, and the value may be too high or too low, depending on the size, condition, location and upgrades of your property.

Second, file your protest by May 31st.   Travis County has a protest form.   Fill out the form and send it in before May 31st, then be prepared to wait.  It can take several weeks for the Travis County Appraisal District to schedule your informal hearing – this gives us plenty of time to get your presentation together.

Third, prepare your presentation.   The purpose of the informal hearing (you’ll probably meet with one staff member at their desk) is for you to present evidence and facts to support your position, such as:

- A cover letter and a Market Analysis, which I will provide.   The analysis is going to justify the lowest value to help you challenge your assessment.

- Document your property’s condition.   Do you have foundation issues? Plumbing problems? Anything negative?  Document these and take photos if possible.

- Information about your location.   If your home adjoins a busy street or intersection, print a map to document your location.

- A property recently purchased in the last few months whose price justifies your position, just bring a copy of your HUD Settlement Statement.

Fourth, present your material with these facts in mind:

- The Appraisal District is responsible for setting the assessed value. They have nothing to do with the tax rate. You are not going to the hearing to protest your tax rate or how much you are paying in taxes. You are only appealing the county’s assessed value of your home.
- Be polite and courteous.
- Bring an extra copy of your supporting documentation to leave with them.

I hope this was helpful to you!!

Mary “B” Battaglia, GRI, CRS  (email me for assistance)

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For more information on the process, contact the Travis Central Appraisal District at 512.834.9138 or visit their website.   For information on the Williamson County appraisal and appeal process, call 512.930.3787 or visit their website.   Although this article is mainly focused on assessed values in the Austin, Texas area some of the information may help you outside the area as well.

Tips for Kitchen Remodeling

Sunday, March 21st, 2010

If you’re contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home.  To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.

1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending a few months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:

•Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
•Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
•Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.

3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle.  Most people tend to overspend in this area.

The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like epinions.com and resources such as Consumer Reports.

4. Create a well-designed lighting scheme
Some guidelines:

• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.

• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.

5. Focus on durability
People are putting more emphasis on functionality and durability in the kitchen.   Solid-surface countertops [Granite, Quartz, Corian, Silestone] are a perfect example; they may cost more than laminate  but they are going to look as good much better in 5-10 years.

If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser,  “But they can give you an edge when it comes time to market your home for sale” especially if other competing homes have similar features.

6. Add storage, not space
To add storage without bumping out walls:

• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.

• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets.  Add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate effectively—and often
Having a good rapport with your project manager, contractor or construction team is essential for staying on budget.   To keep the sweetness in your project:

•Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
•Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
•Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.

Homeowners spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. The kitchen is the hub of most homes, and a source of pride. With a little planning, you can ensure your kitchen gives you years of satisfaction.

Tax Credits for Replacing Your Roof

Wednesday, February 24th, 2010

Replacing your roof with a qualifying energy-efficient metal or asphalt roof can cut your cooling bill and earn you a $1,500 tax credit. 

The roof of your house protects against more than rain, sleet and hail.  The sun’s rays beat down relentlessly, especially during summer.  The intense heat can raise the temperature inside your home.  Proper venting and insulation help keep the cool air in and the warm air out.  So, too, do energy-efficient roofing materials, which take the brunt of the solar onslaught.  For homeowners who improve the roofs of their primary residences Uncle Sam is giving a tax credit worth up to $1,500. 

During 2009 and 2010, you can claim a credit for 30% of the cost of qualifying asphalt or metal roofing materials. The credit, which should be taken on IRS Form 5695 for the tax year in which the work is completed, can be split between 2009 and 2010 but can’t exceed $1,500 total for both years. You can’t claim more in credits than you owe in taxes. 

Roof Types – Metal or asphalt shingle 

To qualify for the tax credit, you must use either metal or asphalt roofing materials that are designed to reduce “heat gain”, which is the amount of heat transferred into a home, and meet the requirements of Energy Star, a Federal program that promotes energy-efficient products and practices. Metal roofs must have appropriate pigmented coatings and asphalt roofs must have appropriate cooling granules. Asphalt materials are the traditional shingles, and can be rated to last from 15 years to 30 years.  Energy Star has a list of all of its approved roofing products, but only the metal and asphalt materials may qualify for the tax credit. 

It’s a good idea to keep any manufacturers’ certification statements that attest to the tax credit-worthiness of the roofing materials you purchase.  These can usually be found on product packaging or company websites.  You don’t need to file these with your tax return, but the IRS could ask for them later. Consult a tax adviser. 

Dean Kucharski, a 22-year veteran of the roofing business in Pontiac, Mich., estimates that for a typical 2,200-square-foot home, a mid-range asphalt roof will run about $7,000 to $12,000, including labor. The good news is that it will likely last 20 years or more. For a metal roof, expect to pay twice as much, though it can last for 50 years, he says. If you hire a contractor, get an itemized bill that breaks out the cost of materials since labor doesn’t count toward the tax credit. Materials should account for about half the bill on standard roofing jobs. 

Once you’re ready to select a roof type, either talk to an area building supply company that specializes in roofing materials, or to a competent roofing contractor.  Finding a good roofer entails the same steps as finding any qualified contractor: ask neighbors for recommendations, collect at least three bids, check references, and get everything in writing.  Of course I will be happy to recommend some reliable roofing contractors for you. 

More savings too - on cooling bills 

You’ll get the most bang for your roof-renovation buck if you live in a hot climate like ours.  You can expect to save between 7% and 15% on your cooling costs with energy-efficient roofing materials.  If you pay $300 a month to cool your home, figure you’ll cut your monthly bill by up to $45, which is over $500 per year. 

Ironically, with roofs there is such a thing as being too energy efficient. In winter months, roofing materials with very high heat-deflecting qualities can increase heating bills. However, you’re more than likely to make up the difference on your air-conditioning costs. That’s especially true here in Austin, where you run your air conditioner much of the year. 

 

 

Disclaimer: This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.