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Throughout most of the state, the boom conditions in the real estate market ended in 2005 – in some cases rather abruptly. According to figures from the Department of Revenue, Wisconsin home values rose an average of 10 percent in 2005. DOR figures are not yet available for 2006, but the popular consensus is that home prices have leveled off (or at least slowed in the rate of increase).

The impact of this market change can be felt in many areas for homeowners – including the area of property assessments and the property tax bill. Tax bills for 2006 arrived in December and many homeowners have expressed concern, if not frustration – particularly if they are also in the process of trying to sell their property. Why? Because their tax bill is based on an assessed value that appears to be many thousands of dollars higher than the market is willing to pay.

How does this happen? First of all, we must remember that the 2006 property tax is based on the assessed value of that property as of January 1, 2006 – the very end of the housing price escalation. Unfortunately, there is no correcting the 2006 assessments.

Local assessors are busy establishing the assessed values for 2007. So what do we do now if we believe an assessment is too high? By law, property owners have an opportunity to challenge their current year assessment if they do so in a timely manner.

Notice of Change in Assessed Value

An official notice of any increase in the assessed value must be mailed to the property owner at least 15 days prior to the local Board of Review meeting (or Board of Assessors, if applicable). The notice must contain the amount of the change in the assessed value along with the date, time and location of the Board of Review meeting. In addition, the notice must set forth the procedures available to the property owner to object to the assessment. Typically these notices are mailed in April or May, but please note – failure to receive the notice does not invalidate the assessment. Therefore, if there is concern about an assessed value, it may be prudent to check with the municipal clerk’s office as to the anticipated date of the mailing of notices and the date of the Board of Review meeting.

Assessment Roll Open Book Sessions

If possible, the property owner should always try to meet with the assessor to discuss any questions about the assessment. By law, the local unit of government must publish or post a notice at least 15 days in advance of when the tax rolls will be open for inspection. This process is a less formal alternative – especially given that the assessors are present for at least two hours while assessment roll is open. Minor errors and misunderstandings may be easily corrected. It may be a good idea to contact the municipal clerk to verify the dates of the open book sessions and determine the times the assessors will be available.

48 Hours!

If the property owner decides to appeal the assessment to the Board of Review, the property owner must file a notice of intent to challenge the assessment with the Board’s clerk at least 48 hours in advance of the Board of Review’s first meeting.

Filing the Assessment Objection Form

The next step in the process is the filing of the objection to property assessment form, again with the clerk of the Board of Review, no later than during the first two hours of the Board’s first scheduled meeting. The form itself is available from the local municipal clerk’s office. It is always best to reconfirm with the municipal clerk the date, time and location of the first Board of Review meeting, as this may have changed to a later date than designated on the original notice of assessment change.

Board of Review

The Board’s first meeting will be at least two hours long. Assessment roll and other assessment data will be available during the meeting for examination by property owners. It is imperative that the property owner (or the property owner’s representative) appears at this meeting in order to preserve any subsequent rights of appeal.

The Board will schedule all objections that have been received prior to or during the first two hours of the meeting for a subsequent hearing. A minimum of 48 hours prior notice of the hearing must be provided to the property owner and the assessor (unless the parties mutually agree to waive the notice requirement).

The Board of Review is made up of municipal officials, local residents or a combination thereof, as established by the local ordinance. By state law, the Board must include at least one member who is the municipality’s chief executive officer (or his or her designee). This person(s) must have attended DOR training within two years prior to the Board’s first session.

The Board operates similar to a court of law – receiving sworn oral testimony supported by appropriate documentation. For example, if the property owner has an appraisal that he would like to introduce into evidence, it will be necessary for the appraiser to attend the hearing and provide testimony about the appraisal. In Milwaukee and other cities that have a Board of Assessors, the process is a bit different. The property owner must first go through an informal review by the Board of Assessors (composed of members of the assessor’s staff) before objecting to the Board of Review.

Removal of Board Members

In order to preserve the due process rights of the parties, a property owner filing an objection to the assessment may request that any one Board member be removed during the hearing on the assessment – for any reason whatsoever. Further, the property owner may request the removal of additional Board members for cause. All requests must be filed at the time the 48-hour notice of intent to challenge the property assessment is filed. Lastly, the municipality must also remove any Board members having a conflict of interest in the particular objection coming before them.

Appeal of the Board’s Decision

A property owner has the right of appeal if he or she does not agree with the decision of the Board of Review. There are two avenues of appeal set forth in the statutes – one is to the circuit court and the other is to the Department of Revenue.

Conclusion

The Department of Revenue Web site (www.dor.state.wi.us/html/govpub.html) offers a number of helpful publications regarding property taxes and the assessment process that can be downloaded or ordered, including the “Guide for Property Owners” – an excellent booklet of questions and answers about property assessment and taxes in Wisconsin.

By March or April of this year, most assessors will set the 2007 assessed values to properties. This will provide a new opportunity for property owners to make certain their property values reflect accurate values in the post-boom real estate market conditions.

By: Kevin King and Debbi Conrad

When deciding to sell to sell your home, a little extra work can make a huge impact as to how smooth your transaction will be. It will have an impact on who will be looking at your home, what a prospective buyer is willing to offer you on your home, and even if you get to the closing table!

Personally dealing with the West Bend Wisconsin real estate market, I can tell you that anything you do cosmetically to increase curb appeal will help with the sale of you home. This means you are staging your home to look like it is on display. Many common improvements that have an impact on selling a home aren’t very expensive at all. Simple tasks, such as giving rooms a fresh coat of paint, quickly pay off.

Those planning on adding a “for sale” sign to the front lawn this spring might want to consider these five areas while creating their to-do list when getting ready for sale.

First Impressions, Lasting Impression!
Giving your home the proper look is going to determine how potential buyers feel about your home the second they pull up. History shows the first impressions are based on the home’s exterior, the shrubbery, the gutters and the front door. This includes the landscaping of the yard, maintained bushes with no overgrowing, and overall curb appeal. If there is a fire hydrant near your property, it may be wise to add a fresh coat of paint giving the neighborhood a little more glow as well. After all, you technically are selling the neighborhood as well.

Peeling trim or an odd color exterior of a home could lose potential buyers before they even set foot in your home. This goes hand -in-hand with your Realtors online marketing as well. Hundreds of people searching for there next home are going to be making decisions to move foreword with there purchase based on there interest online. Having good wide angle pictures of a home with great curb appeal is going to attract three times as many buyers to set appointment to come a view your home. Studies have shown the now in 2007, 87% of home buyers start there home search online, and online buyers purchase on average of 3 weeks earlier than traditional buyers. Don’t fall victim to poor first impressions. It could be the kiss of death for your homes sale.

De cluttering and Neutralizing
When it come to preparing the interior of your home, real estate professionals will advise a client to make a move to more neutral colors. It seems that people can’t visualize beyond what they see. Neutral colors, including beige and ivory, can also have an added advantage of making a room appear larger. Adding higher wattage lights is a good idea because it makes the home more bright and spacious.

Take down your personal pictures! Someone that is actively searching for a home is not going to want to see your wedding photos, pictures of all the kids, graduation pictures, and other wall knick-knacks. This makes your home seem to personal and may make the viewer feel unconvertible about being there. Or worse, be more interested in your belongings than your home! Other than keeping your home clean, do some basic spring cleaning: Shampoo the carpets, rebuff hardwood floors and oil any wood cabinetry

Replace Things Before It Becomes An Issue
Sellers might also consider having a home inspection done prior to listing the home as a way to detect any overdue replacement projects. A seller has the option of either fixing the problem or giving the buyer a discount to account for the needed repairs, but Mr. Gillespie is an advocate for making the necessary repairs before selling. Home buyers recognize the value of a house that doesn’t need major repairs. It is best to be able to address issues before someone puts in offer in on your home. It is just one way for the deal to possibly fall apart.

In fact, according to the 2006 “Cost vs. Value” report from Remodeling magazine, a roof replacement for a midrange home had an average cost of $14,276, and returned $10,553, or 73% at resale. A vinyl-siding replacement had an average cost of $9,134, and returned $7,963, or 87% at resale.

Kitchen & Bathrooms
It’s no secret that buyers tend to be awed by updated kitchens and bathrooms.

If the last time it was remodeled was in 1972, that’s going to be points against versus another house that was upgraded even five years ago with sort of a modern look. It’s hard to go wrong with a kitchen or bath remodel unless you get a little too edgy with the design or the materials. Keep them classy.

If kitchen cabinets are structurally fine but their exteriors are outdated, it might be worth it to reface them. If counters are old, replacing them will add new life to the room.

Offer a Home Warranty & Having Documented Work
Sellers can provide some extra peace of mind to buyers by purchasing a home warranty on their home that will cover such things as heating and plumbing should the buyer run into problems after closing. The coverage is getting more popular nowadays. Warranties can be bought from companies including American Home Shield and Aon.

I, Dan Burgeson, Explain to my potential clients that when putting there home on the market, providing a Home warranty will lower the amount of time there property is on the market. Buyers like to know that nothing is going to happen to them once they close on there home. Providing a home warranty says something about your home. It tell buyer that your home is in great shape and to prove it, we will cover any issues for a year after you move in. Coldwell Banker has a relationship with American Home Shield and can be advertised on every home listing. Displaying the age of the water heater and furnace isn’t a bad idea either. If one is on the older side, have it inspected for proof that it functions correctly. Also, explain if any home improvements have produced a cost savings in terms of energy usage. WE Energies in Wisconsin give a tax credit for energy efficient homes.

There is a new Property Maintenance Code update for the Village of Jackson Wisconsin. As you all know, they require a Property Maintenance Code. They have changed their procedures effective immediately(02-09-2007)! They will not complete the SPECIAL ASSESSMENT LETTERS on property until this Property maintenance Inspection has been completed.

Therefore, to prevent a delay in any transaction in the Village of Jackson, please remember to have this Property Maintenance Inspection done as soon as possible upon acceptance of an offer.

This will prevent closing dates to be pushed back, and inconveniencing the buyers or sellers of a property. View Property Maintenance Code

A home is arguably one of the largest financial investments a person will make in their lifetime. While property values over time are determined by national variables, the economy and local market conditions, the care and upkeep of a property is also a crucial element toward achieving a solid re-sell. Whether you are planning on adding more rooms to create extra space, upgrading your kitchen with new appliances or are thinking of putting your home on the market, Coldwell Banker Real Estate Corporation offers some essential home improvement tips that might increase the value of your home.

Kitchen Makeover: Out of all the rooms in the house, the kitchen is the most popular to remodel. According to Remodeling Magazine, money spent to upgrade a kitchen produces the highest return on investment. “Hot” kitchen makeover trends include adding dual sinks, cooking stations, extra-long dishwashers, under-cabinet lighting, warming ovens and wine coolers.

Bathroom Fixer-Upper: Upgrading a bathroom is also a sound choice and will usually provide a significant return on investment. Large bathrooms are typically on the top of the list of priorities for those seeking to purchase a home. Adding skylights, glass block windows, ceiling fans and sunken whirlpool baths are also attractive selling features. If you don’t have the room to expand or to accommodate larger appliances, or you don’t think you’ll be living in your home long enough to enjoy the changes and/or see a return on this kind of investment, stick with neutral, mid-builder level updated cabinetry, refreshed flooring and shower/tub, or a new sink and toilet.

Room to Grow: Adding a room or two, such as a spare bedroom or a study, is a significant home improvement that you will be able to take advantage of every day. In addition to the much-needed extra space, it can also potentially provide you with a good return on your investment when it comes to selling the property.

Landscaping the Lot: A professionally landscaped yard can certainly increase the “curb appeal” or desirability of a home. In fact, beautifying your lawn can be one of the most inexpensive home improvements. Additional simple landscaping projects include trimming and edging the grass, manicuring the trees and shrubs to open up the view of the house, removing any dead plants and planting flowers to brighten up the yard. Click here to view a video on backyard redesign.

Repair Jobs: While many homeowners may want to update and remodel their kitchen, if the roof needs fixing or the chimney has to be reappointed, then they should prioritize these necessary repairs over any cosmetic changes. This applies to both sellers and those who plan to stay in the home for years to come, as these essential repairs must be taken care of before they cause the house to lose value. It is vital to look after the minor problems such as a leaky faucet or a loose cabinet to ensure that your house doesn’t undergo any long-term damage. As soon as you notice a problem, fix it since this will help avoid a larger expense later on.

Cosmetic Touch-Ups: A paint job, new double-paned windows and new carpeting will increase the price of a house virtually dollar-for-dollar. Neutral colored paint and eliminating clutter can make a world of difference. However, don’t go overboard with home improvement projects that will push a house too much above the current average value of homes in your neighborhood. It is important to make sure that your home has standards that are in-line with the other houses in the neighborhood, but you do not want to price yourself out of the market.

Home Improvement Professionals For Hire: Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and interview them - checking is critical. The most important quality to look for is trust, not initial price. Dan Burgeson’s local partners is a great place to search for your next project.

Funding Options: Coldwell Banker Mortgage recommends a number of options for homeowners looking to upgrade their homes, including a cash-out refinance, a home equity line of credit or a second mortgage.

Although home appreciation has leveled off in some markets, sellers can still get good prices for their homes. The sale may take a bit longer, but a little creativity can help sellers move homes without having to drop the price.

The professionals at Coldwell Banker Real Estate Corporation offer the following suggestions for sellers who want to speed the process:

Price Your Home According to the Current Market. Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home. Remember that in this market, your sales associate may encourage a list price in accordance with others currently on the market, rather than those previously sold. Visit the Home Price Estimatorto get a sense of comparative sales prior to meeting with your sales associate.

Be Thankful for Appreciation. While price appreciation has slowed in some markets in 2006, it is important to look realistically at the financial gains you have made over the years you have owned your home. According to the National Association of REALTORS®, over the last six years the median sales price of a single-family existing home in the U.S. appreciated 7.6 percent annually.

Make Your Home More Marketable. When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller. To see videos on making your home more marketable, click here.

Conduct a Full Home Inspection. If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each.

Offer a “Seller’s Contribution.” A seller can sweeten the deal by offering assistance to the buyer in ways that do not require lowering the asking price. These tactics can help your home to stand out from the crowd. For example:

• Offer to buy down the interest rate on the buyer’s mortgage.
• Offer to pay a portion of the closing costs.
• Cover the buyer’s mortgage payments for up to the first six months. Depending upon the size of the mortgage, the buyer can save several thousand dollars and the seller still gets the original asking price for the home. It is generally more financially advantageous to do this than dropping the asking price by $30-, $20- or even just $10,000.
• Many condos and houses across the country belong to homeowners’ associations that require annual dues. Paying the first year’s fees could be a big incentive to a buyer nearing the limit of his or her liquid assets.
• Offer to pay off a buyer’s bills. According to Realty Times, some loan programs allow sellers to pay off the credit card debt or auto loans of the buyer which will help him or her qualify for a better mortgage and prevent the need to buy a smaller, less expensive house.

Don’t Worry. Properly priced homes that stand out from the competition are selling and demand for homes is still at historical highs. Speak to your Coldwell Banker® sales associate to find out how long an appropriately priced home is expected to remain on the market in your area.

Homeowners are winners under the Taxpayer Relief Act of 1997. Under the new law, up to $250,000 ($500,000 for a married couple filing a joint return) of gain realized on the sale or exchange of a principal residence is not taxable – not just deferred. In addition, the new law reduced the capital gains tax rate. Any gain from your home sale in excess of $250,000-$500,000 is taxed at the new lower rate.

Homeowners qualify for this tax exclusion if two requirements are met:

The home must be used as a principal residence for two of the preceding five years. This law does not apply to vacation or second-home properties. There are some exceptions for those who cannot satisfy the two-year use requirement.

No more than one sale or exchange can take place every two years.
If you are selling your home, you should contact a tax adviser for details on how this new law applies to your sale.