Increasing Seller's Property Value

Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.

Some tips to achieve a positive impact on value are:

• Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
• Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property -- such as encroachments, or tenants who wont allow buyer tours -- negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
• Cosmetics are important.
  • Fresh paint will always add more value than it costs.
  • Clean or new carpet/flooring adds more value than it costs.
  • Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
  • If you can, add some colorful flowers and new sod.
• Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
• Condition affects value. Do a seller's home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer's inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
• If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
• Strategic renovations impact value and your bottom line. Don't spend more money to renovate the place than you can recapture in value on the sales price.

Want more info ? visit: http://www.robertjrussell.com

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So you want to be on the HOA Board.....wait...don't sign up just yet

Welcome to the HOA Board!

The annual homeowner association meeting convenes. The president announces that the floor is open for nominations. A fellow homeowner say to you, "You know, you would make a good board member." Before you have a chance to reply, some body movement indicates that you are willing, ready and able to serve. "The nominations are closed," a vote is taken, and suddenly YOU ARE ON THE BOARD OF DIRECTORS. You ask yourself, "What does being on the board mean, who is going to teach me and how much do I get paid?" Here are some basic guidelines on how to become a successful board member and enjoy it at the same time...a lesson in HOA responsibilities and practices. What does it mean to be on the board? You have made a commitment that you will serve the HOA's interests to the best of your ability, be fair on matters that come before the board, will do your best to preserve and enhance the values of the common areas and that you will spend money in a prudent manner. Being a director also means that you have fiduciary duties which require making reasonable investigation into matters dealt with and acting in a businesslike, prudent manner when making decisions. Who is going to teach you? Hopefully, you have several veterans on the board who will help you. Ideally, you will have the property manager who works closely with the board and is willing to offer guidance. Continuity is one of a board's greatest challenges. Ask questions. How have issues been handled in the past? Current boards should carefully consider plans laid by previous boards and not change them impulsively. Take time to become familiar with your association grounds and facilities. Review the HOA's governing documents, the rules and regulations, and any other board policies to develop a familiarity with them. Keep a set handy for when specific questions arise. Make a commitment to attend all board meetings and prepare in advance by studying the agenda and related material. There generally aren't (or shouldn't be) many meetings but each deals with critical issues. Give them your full attention. Budget time offers an opportunity to help build a sound financial future for the community. The two basic parts of the budget are Operating (deals with routine maintenance and day to day expenses) and Reserves (long range, major repairs and replacements). As a member of the board, you will be asked to predict future financial needs by using both past budget history and new information accumulated for future repairs. How much does the job pay? While no money is paid, there are many personal rewards to be had for a job well done. Dealing with people requires patience and flexibility. Remember that while disagreement is not always avoidable, you were elected to make decisions. Consider carefully those decisions put before you and do your best. If you serve as a committed member, it will be one of the more rewarding experiences that you will have. by Richard Thompson For More information on HOA's visit http://www.robertjrussell.com

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Giving Gifts and Lowering Taxes

If you give gifts in the course of your business, you can deduct all
or part of the cost, but you cannot deduct more than $25 for each
business gift that you gave away during the tax year.

A gift that is intended for the eventual personal use or benefit of a
particular person or class of people will be considered a gift to that
person or class of people. If you give a gift to a member of a
customer's family, the gift is generally considered to be an indirect
gift to the customer. This rule does not apply if you have an
independent business connection with that family member and the gift
is not intended for the customer's eventual use.

Incidental costs, like gift wrapping, packaging, insuring, and
mailing, are generally not included in determining the cost of the
gift. You cannot deduct gift items that cost less than $4 if they have
your name clearly and permanently imprinted on the gift, or if the
gift is one of many identical items that you widely distribute, like
pens and cases. Signs, display racks, and other promotional materials
also cannot be deducted as gifts.

Always consult with your tax planner or CPA before moving forward because I am not certified to do taxes.

Visit: http://www.robertjrussell.com

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America's Most Miserable Cities

Lousy weather, long commutes, rising unemployment and high sales tax. Welcome home.

Chicago would seem to be on quite a roll these days. The city is a leading contender to host the Summer Olympics in 2016. The hometown Cubs had the most wins of any team in the National League last year and are one of the early favorites to win the 2009 World Series. And, of course, one of its own just became the most powerful person in the world (we're not talking about Oprah either, but she's close).

So with all of the good vibes coming out of Chicago, how does it show up as the third worst city on our second annual list of America's Most Miserable Cities?

Lousy weather, long commutes, rising unemployment and the highest sales tax rate in the country are to blame for the Windy City being near the top of our list. High rates of corruption by public officials didn't help

Misery was up around the country in 2008. Market meltdowns, bank blowups and bailouts and cratering home prices often overshadowed the incredibly positive stories of 2008 like the Beijing Summer Games and the historic election of Barack Obama. The highly watched Misery Index spiked as the unemployment rate plus the inflation rate surged to 9.6 in 2008, up from 7.5 the previous year. It was the highest annual level since 1993.

Our own Forbes Misery Measure saw a shuffling of the deck among the top 10 cities, with five new candidates getting a failing grade this year. Topping the charts is Stockton, Calif., which was the runner-up on our list last year.

The Most Miserable City

Stockton ranks in the bottom seven in four of the nine categories we looked at: commute times, income tax rates, unemployment and violent crime. Only New York City has a higher income tax rate than what Stockton, and all California residents, are forced to pay.

Stockton was ground zero for the housing boom and now the subsequent bust. Home prices more than tripled between 1998 and 2005 and then came crashing down last year. Stockton had the country's highest foreclosure rate last year at 9.5%, according to RealtyTrac, an online marketer of foreclosed property. Things are not looking much brighter in 2009 as housing prices are expected to fall another 36% on the heels of a 39% drop in 2008. Also, unemployment is expected to jump to 13.3% from 10.4%, according to economic research firm Moody's Economy.com.

"We are engaging the entire community and encouraging everyone to get involved and help us find solutions that meet the needs of our community," says Stockton Mayor Ann Johnston. "Volunteerism is encouraged, looking out for your neighbor, and taking personal responsibility where individuals can make a difference. We are partnering with all community organizations--schools, churches, non-profits-- to provide support services and help individuals and families get through these difficult times."

We compiled our rankings by looking at the 150 largest metropolitan statistical areas in the U.S., which meant those with a population of at least 378,000. We ranked those metros on nine factors: commute times, corruption, pro sports teams, Superfund sites, taxes (both income and sales), unemployment, violent crime and weather.

For this year's ranking, we added the corruption component. We used the criminal conviction of government officials in each area over the past decade as compiled by the Public Integrity Section of the Department of Justice. This division of the Justice Department was created in 1976 to focus on "crimes involving abuses of the public trust by government officials."

A Little Corruption Problem

The U.S. Attorney's Office for the Northern District of Illinois, which includes Chicago, has been very busy in recent years. They convicted 385 public officials of crimes over the past decade, a per capita rate that puts it in the bottom third of big U.S. metros.

The Northern District office boasts of recent successful prosecutions, including "a corrupt former governor of Illinois, Chicago officials who rigged city hiring, individuals who lied about their support of foreign terrorism, corporate executives who cheated public shareholders and traditional organized-crime bosses who were responsible for notorious murders."

Illinois' record of public corruption, particularly in the governor's office, is staggering. Five of the past nine governors have been charged with crimes, and three, as of now, have served time in prison. Whether former Gov. Blagojevich will do any jail time is still to be determined.

The misery in Chicago runs much deeper than just corruption, though. Unemployment is expected to surge to 9.2% in 2009, up from 6.6%. The Tribune Co. is mired in bankruptcy, while big local employers like Midway Games, Motorola and the University of Chicago Medical Center have all announced big layoffs.

Residents have been showing their dissatisfaction with Chicago with their feet, perhaps fed up by the average low temperature of 17 degrees in January. There has been a net migration of people out of Chicago for seven straight years, a trend that is expected to continue. And for all of the recent success of the lovable Cubs, last year marked the 100th straight season without a World Series championship. The title drought is 40% longer than any other major professional sports team.

Memphis Blues

Sandwiched between Stockton and Chicago is Memphis, Tenn. The home of FedEx has an incredibly high rate of violent crimes, with only Detroit faring worse. The 1,218 violent crimes per 100,000 residents is more than twice the rate in the New York City metro area. The city's sales tax and rate of government employees committing crimes also fall within the 10 highest in the U.S. Pro sports has been a mess in Memphis in recent years as well. The city's lone major franchise, the Memphis Grizzlies, has lost 74% of its games during the past three years, the worst in the NBA.

Detroit relinquished its 2007 crown of most miserable city despite a memorable 2008 that included a jailed mayor, the further deterioration of the auto industry and the NFL's first zero-win, 16-loss season.

The Motor City benefited from our revised criteria this year (we added sales tax and sports teams in addition to corruption). Its 6% sales tax is one of the lowest in the country. The success of Detroit's winter sports teams more than offset the ineptitude of the Lions. The Red Wings and Pistons won two-thirds of their games, including a Stanley Cup title for the Wings.

By Kurt Badenhausen, Forbes.com

Feb 6, 2009

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