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OPEN HOUSE today 330 N Ave Nevada 3:30-5
OPEN HOUSE today 330 N Ave Nevada 3:30-5:00 check out this adorable ranch home with a great kitchen! http://ow.ly/suJjq
OPEN HOUSE today 27020 Woods Rd, Nevada
OPEN HOUSE today 27020 Woods Rd, Nevada 1:30-3:00 you’ll love this updated mini-acreage just south of Nevada http://ow.ly/suJ9q
OPEN HOUSE @ 125 Mathews, Gilbert today
OPEN HOUSE @ 125 Mathews, Gilbert today 11:30-1:00pm great house 3-4 bedrooms, 2 baths & ready for you! http://ow.ly/suIVY
Iowa Business Property Tax Credit – apply by Jan 15 2014!!
Business Property Tax Credit: Information for Taxpayers
What is the Business Property Tax Credit?
The Business Property Tax Credit is part of the overall 2013 property tax reform bill that was enacted
by the Iowa Legislature and signed by Governor Branstad. The credit is applied toward property tax
due on the 2013 property assessment and payable in the fall of 2014 and the spring of 2015.
What Property is Eligible for the Credit?
This credit is available for certain commercial, industrial and railroad properties. The credit is
applicable to individual parcels as well as “property units.” One credit is available for each qualified
parcel or property unit.
What is a Property Unit?
A property unit is a new concept specific to the credit. The law defines a property unit as contiguous
parcels of the same classification that are owned by the same person, located in the same county, and
operated by that person for a common use and purpose.
What is a Contiguous Parcel?
Contiguous parcels are:
• Parcels that share a common boundary;
• Parcels within the same building or structure, regardless of whether or not they share a
common boundary; or
• Permanent improvements to the land that are situated upon one or more parcels of land that
are assessed and taxed separately from the permanent improvements if the parcels of land
upon which the permanent improvements are situated share a common boundary. A more
common way to describe this situation is permanent improvements upon leased land.
What Property is NOT Eligible for the Credit?
The following types of property are not eligible for the Business Property Tax Credit:
• Agricultural property
• Residential property
• Property that is rented or leased under Section 42 (low income) housing
• Hotels, motels, and inns in which rooms are rented for more than 30 days at a time
• Mobile home parks
Iowa Farmland Value Increases… slowing
Iowa farmland value increases slowing
From news reports
Date Modified: 01/08/2014 4:09 PM
E-mail article | Print version
AMES — Average Iowa farmland value is estimated to be $8,716 per acre, an increase of 5.1 percent from 2012, according to results of the Iowa Land Value Survey conducted in November and released last week.
Values increased in 2013 for the fourth year in a row and achieved historic peaks. The increase is similar to results of other recent farmland value surveys, including the Federal Reserve Bank of Chicago and the Iowa Chapter of the Realtors Land Institute surveys.
Scott County, with an estimated $12,413 average value for all farmland, saw the highest average county values in the survey. Scott County also had the highest percentage increase and highest increase in value, 12.45 percent and $1,374 respectively, of the 99 counties.
The Northwest Crop Reporting District reported the highest land values at $10,960, which was a decrease of $445 (3.9 percent) from 2012. O’Brien County showed the highest dollar decrease in 2013 of $478. Osceola, Dickinson and Lyon counties, along with O’Brien County, all shared the greatest percentage decrease in 2013, with 3.72 percent.
“The 2013 land value survey shows a market in flux, with strong and weak price sales occurring at the same time,” said Michael Duffy, Iowa State economics professor and Extension farm management economist who conducts the survey. “The key question is if this shows the market is going to settle, if it is just pausing before another takeoff in values or if the market has peaked and due for a correction.”
Duffy said examining some causes for the current increase in farmland values and the reactions is helpful in assessing the situation. Farmland values are highly correlated with gross farm income. A majority of the survey respondents were concerned about income. More than 3/4, 76 percent, of the respondents cited lower commodity prices as a negative factor affecting the land markets. Data show the rate of increase in land values slowed and commodity prices started dropping after June 2013.
Corn and soybean price movements are good indicators of gross farm income movement. There was a 33 percent drop in the average corn price from October 2012 to October 2013, and there was an 11 percent drop in soybean prices during the same time. The November estimated price for Iowa corn was 39 percent lower than the November 2012 price. Soybean prices were 11 percent lower.
Many competing forces will influence prices during the coming years. Duffy said that, for now, it appears there are more factors that will lead to lower prices, as opposed to returning to levels of the past few years.
“Farm income is a strong indicator for the direction land values will go, but there are other factors as well,” Duffy said. “Interest rates remain low, but the percent of respondents who reported less sales than in 2012 was the highest it’s been since 1985.
The odds are against a major collapse in land values. But, if projections of a new lower level for commodity prices hold, then Duffy believes Iowa should expect land values to drop. The economist said many respondents commented that the current situation might be a plateau.
The Iowa Land Value Survey was initiated in 1941 and is sponsored by the Iowa Agriculture and Home Economics Experiment Station, Iowa State University. The survey is based on reports by licensed real estate brokers and selected individuals considered knowledgeable of land market conditions. The 2013 survey is based on 476 usable responses providing 674 county land value estimates.
Maps showing 2013 values, percentage change and comparisons to 2012 data and additional information from Duffy are available at extension.iastate.edu/topic/landvalue.
Predictions for 2014: Interest Rates Will Increase Signficantly
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Predictions for 2014: Interest Rates Will Increase Significantly Posted: 08 Jan 2014 04:00 AM PST Most experts are calling for an increase in mortgage interest rates in 2014. However, we believe the increase will be more dramatic than is being projected. We believe rates will be closer to 6% than 5% by year’s end. The Fed announced last month that they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the KCM Blog has been warning of this likelihood over the last several months.
Above are the most recent projections of where rates will be at the end of 2014 by the four major agencies. However, we believe that the government is not afraid to shoot right past these levels. Doug Duncan, chief economist for Fannie Mae, this past summer announced: “I don’t think the Fed ultimately would be troubled with a 6.5% mortgage rate.” And Frank Nothaft, Freddie Mac VP and chief economist, at virtually the same time explained: “As the economy continues to improve, we expect to see continued upward movement in long-term interest rates… At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.” Only time will tell. However, we feel that rates will be in the 5.75-6% range by year’s end. |
Predictions for 2014: Supply Will Struggle to Keep Up with Deman
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Predictions for 2014: Supply Will Struggle to Keep Up with Demand Posted: 07 Jan 2014 04:00 AM PST
For a balanced real estate market, there should be approximately 5-6 months of inventory for sale (example: if 100 homes sold last month, we would need 500-600 homes available for sale). Nationally, we are just now hitting the five month level. As the spring selling season begins to heat up, a new wave of housing inventory would have to come to market to keep up with the increasing demand of buyers. If we couple this seasonal increase with the other dynamics that will increase demand for housing in 2014, we believe that housing inventory could drop substantially. This, in our opinion, is the biggest threat to a full blown surge in sales this year. Some experts have looked at the recent monthly decline in existing home sales nationally as evidence that a lack of consumer confidence or the increase in interest rates has buyers back up on the fence. However, a closer look at existing home sales reveals that sales remained unchanged in one of the four regions of the country (the Midwest) and actually increased in two other regions (the Northeast and the South). The only region that had a decrease in sales was the Western region (down over 10%). If it was a matter of consumer confidence or mortgage rates, there would have been a similar decrease in sales throughout all four regions. The fall-off in sales in the West is directly attributable to a lack of salable inventory in the hottest markets in the region. It is up to the builders and real estate agents in each community to make sure this doesn’t happen. |
With a dramatic increase in demand for housing expected this year, it will be up to real estate professionals and builders to make sure there is the necessary inventory to satisfy this demand. This will be a challenge for much of 2014.Good News for the Economy = Bad News for Rates…
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Good News for the Economy = Bad News for Rates Posted: 16 Dec 2013 04:00 AM PST
Analysts at Capital Economics noted in a recent HousingWire article: “The 203,000 increase in November’s non-farm payrolls, along with the drop in the unemployment rate to a five-year low of 7.0%, gives the Fed all the evidence it needs to begin tapering its asset purchases at the next FOMC meeting later this month.” Whether such ‘tapering’ occurs this month or early next year is questionable. The fact that mortgage rates will spike when it does occur is more a guarantee. Here are the thoughts of a few Fed presidents regarding whether it is in fact time to cut back on this stimulus program: James Bullard, President of the Federal Reserve Bank of St. Louis “To the extent that key labor market indicators continue to show cumulative improvement, the likelihood of tapering asset purchases will continue to rise. The Committee’s 2012 criterion of substantial improvement in labor markets gets easier and easier to satisfy on a cumulative basis as labor markets continue to heal…Based on labor market data alone, the probability of a reduction in the pace of asset purchases has increased.” Richard Fisher, President of the Federal Reserve Bank of Dallas “In my view, we at the Fed should begin tapering back our bond purchases at the earliest opportunity…I consider this strategy desirable on its own merit: I would feel more comfortable were we to remove ourselves as soon as possible from interfering with the normal price-setting functioning of financial markets.” Jeffrey Lacker, President of the Federal Reserve Bank of Richmond “I expect discussion about the possibility of reducing the pace of asset purchases. The key issue, in my view, is the extent to which the benefits of further monetary stimulus are likely to outweigh the costs.” If you are thinking about purchasing a home, buying before the tapering will probably mean a lower mortgage interest rate than if you waited. |
The economy is improving. As an example, the latest employment report showed that the unemployment rate hit a five-year low. We must realize that, as the economic news gets better, the government will consider whether or not to continue the programs they put in place to stimulate the economy. One such program is the Fed’s purchasing of assets which has led to historically low long-term mortgage rates.Selling Your Home During the Holidays? Now is the Time!!
Selling Your Home During the Holidays? Now is the Time!
Posted: 11 Dec 2013 04:00 AM PST
Today we are pleased to introduce Matt Sidford as our guest blogger. Matt is the Founder of Sidford Realty and has been helping buyers and sellers in the Park City and Deer Valley markets since 1997.
In today’s competitive real estate market, sometimes the standard, run-of-the-mill open houses aren’t yielding much success, and some sellers are choosing an alternative and effective method, that has been dubbed, “extreme open houses.”
With catered refreshments, prizes and entertainment, these events are causing quite a stir in the real estate world. By that, we mean that sellers are throwing elaborate parties in the guise of an open house, with hope that someone will buy their home. Some sellers hire local musicians and throw a fully catered party, equipped with champagne and expensive hors d’oeuvres. During the holidays, people are in a festive mood, and throwing a party is always a good idea to draw their attention.
The biggest advantage of an extreme open house is that potential buyers can see your home in a different light, giving you a chance to display some of your home’s attractive features. For example, if you are cooking food at your party, your guests can focus on your kitchen. Or, if you’re throwing a barbeque, you can get a chance to show off your favorite patio, drawing attention to some of your home’s best selling points.
Instead of showing a cold, empty home, you can attract potential buyers with a warm and vibrant home full of nice furnishings. Throwing a party in a warm and inviting home is a good idea even when you invite people who don’t intend to buy your home, since many of them will tell their friends about it.
Keep it simple
You don’t really need to throw an elaborate party to draw peoples’ attention, however, you can offer them some nice snacks and a glass of wine, giving them a chance to relax in the living room or the patio, and enjoy some of the comforts of your home. For starters, you can make a list of friends and acquaintances, and then send out some flyers with your contact information and a few facts about your home.
Are the holidays a good time to sell?
Although the holiday season isn’t really considered the best time to sell, the real estate market is much tighter, resulting in less competition for sellers. At the same time, motivated buyers are still in the market for homes, in hopes that they can make a purchase.
During the holidays, you can liven up your home with some lights and ornaments to attract buyers. Although you can make your home “shine” during the holidays, try not to overdo it. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Too many ornaments could have a negative effect, and actually turn buyers away. Obviously, you don’t want to offend people, so be sure to go with tasteful decorations, as opposed to large and gaudy ones.
Also keep in mind that emotions play a big role in homebuyer purchases. A well organized home with a few tasteful decorations shows much better than a cluttered home with your kid’s toys lying around the living room. People will often purchase a home solely based on their gut feelings. If a buyer “falls in love” with your home, chances are they’re going to be more inclined to purchase it.
On a final note, it’s also a good idea to make it easy for people to stop by to see your home. In this case, flexibility is a key factor. People are busy during the holidays, and the chances of selling your home will be much greater if make it available for them to see.
Despite the fact that many people feel that the holidays aren’t a good time to buy or sell a home, this really isn’t the case. With a little knowledge and effort, you can sell your home in a timely manner, relax, and enjoy the Holidays!
5 Financial Reasons to Buy a Home
Harvard: 5 Financial Reasons to Buy a Home
Posted: 10 Dec 2013 04:00 AM PST
Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. This year he released a new paper on homeownership – The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home.
Here are the five reasons, each followed by an excerpt from the study:
1.) Housing is typically the one leveraged investment available.
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”
2.) You’re paying for housing whether you own or rent.
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”
3.) Owning is usually a form of “forced savings”.
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
4.) There are substantial tax benefits to owning.
“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”
5.) Owning is a hedge against inflation.
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”
Bottom Line
We realize that homeownership makes sense for many Americans for many social and family reasons. It also makes sense financially.
