Trincity Realty,LLC

Q: What is the difference between market value and appraised value?
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time.
Lenders require appraisals as part of the loan application process; fees range from $200 to $300.

Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.

Q: How do you increase the value of your property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues - including condition of the property, specific home improvements and neighborhood stability and safety - can influence property values.

The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing.

Though markets vary, that has occurred twice in recent history - in the early 1970's and in the late 1980's. However, single-family homes appreciated much more than condominiums. While overall market conditions are out of the homeowner's control, other factors are not.

For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81 percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent.

Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.

If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.

Q: What are the standard ways of finding out what a house is valued at?
A: A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents determine what a home is worth.

Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. You also can research "the comps" yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location.

This information is not only available at your local recorder's or assessors office but also through private companies and on the internet.

An appraisal, which generally cost $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

Q: How can I improve the value of the property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues - including the condition of he property, specific home improvements and neighborhood stability and safety - can influence property values.

The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Through markets vary, that has occurred twice in recent history - in the early 1970's and the late 1980's.

Specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81 percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent. Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.

The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.

Q: Should I add on or buy a bigger home?
A: Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:

Ultimately, the decision should be based on individual needs, the extent of work involved, and what will add the most value.

Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces and annual "Cost vs. Value Report" that answer just that question.
The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.

Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.

For overall housing statistics, U.S. Housing Markets regularly publishes quarterly reports on home building and home buying. Your local builders association probably gets this report. If not, the housing research firm is located in Canton, MI call (800) 755-6269 for information; the firm also maintains an internet site. Finally, check with the U.S. Bureau of the Census in Washington, DC (301) 495-4700. The census bureau also maintains a site on the internet. The Chicago Title company also has published a pamphlet, "Who's Buying Homes in America." Write Chicago Title and Trust Family of Title Insurers, 171 North Clark St., Chicago, IL 60601-3294.

Q: Where can I get a list of architects?
A: For information on architects, contact the following: American Institute of Architects, 1735 New York Avenue, NW, Washington, DC 20006; (202) 626-7300.

Q: Where do I get information on homes with historic value?
A: For information about homes with historic value, contact the National Trust for Historic Preservation, Washington, DC; 202) 673-4000.

Q: Where do I get information on housing market stats?
A: A real estate agent is a good source for finding out the status of the local housing market. So is your
statewide association of Realtors, most of which are continuously compiling such statistics from local real estate boards.For overall housing statistics, U.S. Housing Markets regularly publishes quarterly reports on home building and home buying. Your local builders association probably gets this report. If not, the housing research firm is located in Canton, MI call (800) 755-6269 for information; the firm also maintains an internet site. Finally, check with the U.S. Bureau of the Census in Washington, DC (301) 495-4700. The census bureau also maintains a site on the internet. The Chicago Title company also has published a pamphlet, "Who's Buying Homes in America." Write Chicago Title and Trust Family of Title Insurers, 171 North Clark St., Chicago, IL 60601-3294.

Q: How do I reach the IRS?
A: To reach the Internal Revenue Service, call (800) TAX-1040.

Q: Where do I get information about finding a real estate attorney?
A: To find a real estate attorney, contact your local bar association, which may offer referral services. You may also ask friends or your real estate agent for their recommendations. When you have several names, call each to find out about fees and their level of experience.

Q: How do I monitor my ARM loan?
A: Consumer Loan Advocates publishes a book with form letters and worksheets to help people who want to check mortgage payments or adjustments on their own. It costs $19.95 plus $4 shipping and handling. For a copy, write or call Consumer Loan Advocates, 655 Rockland Road, Lake Bluff, IL 60044; (847) 615-0024.

Q: Can a home seller sell a home for less than its mortgage?
A: This situation is known as a "short sale." Sometimes homeowners can negotiate with lenders and have them split the difference between the sale price and loan amount, which still must be paid.A short sale may be complicated if the loan has been sold to the secondary market because then the lender will have to get permission from Fannie Mae or Freddie Mac, the major secondary-market players.If the loan was a low-down payment mortgage with private mortgage insurance, then the lender also must involve the mortgage insurance company that insured the low-down loan.Resources:

Q: How does a home go into foreclosure?
A: Foreclosure proceedings usually begin after a borrower has skipped three mortgage payments. The
lender will record a notice of default against the property. Unless the debt is satisfied, the lender will foreclose on the mortgage and proceed to set up a trustee sale.

Q: What happens at a trustee sale?
A: Trustee sales are advertised in advance and require an all-cash bid. The sale is usually conducted by a sheriff, a constable or lawyer acting as trustee. This kind of sale, which usually attracts savvy investors, is not for the novice.In a trustee sale, the lender who holds the first loan on the property starts the bidding at the amount of the loan being foreclosed. Successful bidders receive a trustee's deed.

Q: When does a foreclosure begin?
A: Lenders initiate foreclosure proceedings when homeowners become delinquent in their obligations,usually after three payments are missed. The lender will then notify the buyer in writing that he or she is in default. The lender can request a trustee's sale or a judicial foreclosure, in which the property is sold at public auction.A borrower can cure the default by paying the overdue amount and the pending payment after the notice of default is recorded, usually no later than a few days before the property's sale.Some sales allow the successful bidder to take possession immediately. If the former owner refuses to vacate the premises, the court can issue an unlawful detainer that allows the sheriff to come out and evict them.Borrowers should do everything they can to avoid foreclosure, which is one of the most damaging events that can occur in an individuals credit history.

Q: How bad is previous foreclosure on credit?
A: A property foreclosure is one of the most damaging events in a borrower's credit history. In terms of the effect on credit history, a deed in lieu of foreclosure or a short sale is not as adverse an event as is a forced foreclosure.

Q: Can I protect my home from creditors?
A: Your state may provide you with special protection from creditors through the filing of a homestead
exemption, which exempts some or all of the value of the owner's equity in the homestead from claims of unsecured creditors.Deciding whether or not to file a homestead exemption often depends on an individual's situation. Contact your county recorder's office for details.

Q: What are some guidelines to follow when trying to find a contractor?
A: While hiring contractors recommended by friends is usually a safe route, never hire a construction
professional without first checking him or her out first. If your state has a licensing board for contractors, call to find out if there are any outstanding complaints against that license holder. Also, call your local Better Business Bureau to see if there are any complaints on file.If you are satisfied with the answers you find there, interview the contractor candidates. Ask what kind of worker's compensation insurance they carry and get policy and insurance company phone numbers so you can verify the information. If they are not covered, you could be liable for any work-related injury incurred during the project. Also be sure that the contractor has an umbrella general liability policy.If they pass the insurance hurdle, next check some of their references. A good contractor will be happy to provide as many as you want.Finally, don't let yourself be rushed into making a decision no matter how competitive the market may seem. Also, never pay a deposit to a contactor at the first meeting. You may end up losing your money.

Q: How do I find a home inspector?
A: In order to find a home inspector, Dian Hymer, author of "Buying and Selling a Home, A Complete Guide," Chronicle Books, San Francisco; 1994, advises looking for someone with demonstrable qualifications. "Ideally, the general inspector you select should be either an engineer, an architect or a contractor. When possible, hire an inspector who belongs to one of the home inspection trade organizations."The American Society of Home Inspectors (ASHI) has developed formal inspection guidelines and a professional code of ethics for its members. Membership to ASHI is no automatic; proven field experience and technical knowledge of structures and their various systems and appliances are a prerequisite.One can usually find an inspector by looking in the phone book or by inquiring at a real estate office or sometimes at an area Realtor association.Rates for the service vary greatly. Many inspectors charge about $400, but costs go up with the scope of the inspection.

Q: Do condos have to be made accessible to the disabled?
A: The 1990 Americans with Disabilities Act does not require strictly residential apartments and single-
family homes to be made assessable. But all new construction of public accommodations or commercial projects (such as a government building or a shopping mall) must be accessible. New multi-family construction also falls into this category.In all states, the Federal Housing Act provides protection against discrimination for people with physical or mental disabilities. Discrimination includes the refusal to make reasonable modifications to buildings that aren't accessible to the disabled.Two educational brochures, "Housing Rights" and "Discrimination is Against the Law," are available through the Department of Fair Employment and Housing by calling (800) 884-1684.

Q: Can condos ban smoking?
A: A homeowners association's board of directors can restrict smoking if it applies to indoor common
spaces such as hallways or recreation rooms. Outdoor spaces are a different story, say legal experts. Any restriction would probably hinge on local laws (i.e. if a city banned against smoking outdoors, a homeowner's association probably could restrict smoking in its outdoor spaces).Typical covenants, codes and restrictions (CC&Rs), which govern condo associations, give the board authority to make and enforce reasonable rules for the use of common property. But that would not apply to interior spaces owned by smokers themselves.Resources:

Q: Can a condo association ban nudity?
A: Could you sunbathe in the nude on your own balcony? Not necessarily. In a condominium
development, a balcony is not considered private property but common property assigned to your exclusive use but a common area nonetheless.Covenants, codes and restrictions (CC&Rs) usually spell out what activities can and cannot be conducted on common property. Some associations prevent people from barbecuing on their balconies or hanging large plants from the railings. However, the larger issue of regulating personal conduct is not so clear-cut. It literally depends on what side of the fence you've on.If the sunbather can be seen from a public vantage point - not by someone who must climb a tree or peer through binoculars - then the rule probably would be considered reasonably, say legal expertsIncidentally, there are places where nudity is tolerated but again, only out of public view.

Q: Are condos a good investment?
A: Condominiums have held their value as an investment despite economic downturns and problems with some associations. In fact, condos have appreciated more in the last few years than when they first came on the scene in the late 1970s and early 1980s, experts say.While there are lots of reports about homeowners' association disputes and construction-defeat problems, the industry has worked hard to turn its image around. Elected volunteers who serve on association boards are better trained at handling complex budget and legal issues, for example, while many boards go to great lengths to avoid the kind of protracted and expensive litigation that has hurt resale value in the past.Meanwhile, changing demographics are making condominiums more attractive investments for single homebuyers, empty nesters and first-time buyers in expensive markets.

Q: What's a house worth?
A: A home is worth what someone will pay for it. Everything else is an estimate of value. To determine a property's value, most people turn to either an appraisal or a comparative market analysis.An appraisal is a certified appraiser's estimate amenities, energy efficiency, the quality of the value of a home at a given point in time. To make their determination, appraisers consider square footage, construction quality, design, floor plan, neighborhood and availability of transportation, shopping and schools. Appraisers also take lot size, topography, view and landscaping into account.A comparative market analysis is an informal estimate of market value, based on comparable sales in the neighborhood, performed by a real estate agent or broker. You can do your own cost comparison by looking up recent sales of comparable properties in public records. These records are available at local recorder's or assessor's offices, through private companies or on the internet.Other resources include:

Q: Where do I get information on condos?
A: The major interest group for condominium projects and other so-called common-interest developments is the nonprofit Community Associations Institute, 1630 Duke St., Alexandria, VA 22314; (703) 548-8600. Also, check the internet where CAI operates an informative site as does CIDNetworks.

Q: How are fees and assessments figured in a homeowners association?
A: Homeowners association fees are considered personal living expenses and are not tax-deductible. If,
however, an association has a special assessment to make one or more capital improvements, condo owners may be able to add the expense to their cost basis. Cost basis is a term for the money an owner spends for permanent improvements throughout their time in the home and is used to reduce eventual capital gains taxes when the property is sold. For example, if the association puts a new roof on a building, the expense could be considered part of a condo owner's cost basis only if they lived directly underneath it. Overall improvements to common areas, such as the installation of a swimming pool, need to be considered on a case-by-case basis but, most can be included in the cost basis of any owner who can show that their home directly benefits from the work.To find out more about how the IRS views condo association fees, look to IRS publication 17, "Your Federal Income Tax," which includes a section on condos. Order a free copy by calling
(800) TAX-FORM.

Q: How do you increase the value of your property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues - including the condition of the property, specific home improvements and neighborhood stability and safety - can influence property values.The greatest rise in home process occurs when the economy is strong and the number of home sales is increasing.Though markets vary, that has occurred twice in recent history - in the early 1970's and the late 1980's. However, single-family homes appreciated much more than condominiums. While overall market conditions are out of the homeowner's control, other factors are not.For example, specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81 percent to the owner, a bathroom addition, 89 percent and a master bedroom suite, 82 percent.Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.

Q: How can I improve the value of my property?
A: The biggest factor outside of a homeowner's control is market conditions. But other issues - including the condition of the property, specific home improvements and neighborhood stability and safety - can influence property values.

The greatest rise in home process occurs when the economy is strong and the number of home sales is increasing. Though markets vary, that has occurred twice in recent history - in the early 1970's and the late 1980's.Specific home improvements can increase the value above the cost of the improvements. According to Remodeling magazine, which publishes an annual "Cost vs. Value" remodeling report, a remodeled bathroom returns 81 percent to the owner, a bathroom addition, 89 percent, and a master bedroom suite, 82 percent. Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.

Q: Should I add on or buy a bigger home?
A: Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:

Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces and annual "Cost vs. Value Report" that answers just that question.
The most important point to remember is that remodeling a home not only improves its livability for you but its curb appeal with a potential buyer down the road.Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58 percent of the cost of adding a home office, according to the survey.

Q: Are there gov't programs for rehab?
A: The US Department of Housing and Urban Development's Section 203K rehabilitation loan program is designed to facilitate major structural rehabilitation on houses with one to four units that are more than one year old. Condominiums are not eligible.The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to refinance the construction costs.For a list of participating lenders, call HUD at (202) 798-2720.If you are a veteran, loans from the US Department of VA Affairs also can be used to bay a home, build a home, improve a home or to refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.
Another program is the Federal Housing Administration's Title 1 FHA loan program.Resources:

Q: Can you deduct the cost of home improvements?
A: What you spend on permanent home improvements, such as new windows, can be added into your
home's cost basis, or amount of money invested in a home, which reduces capital gains when it comes time to sell. Capital gains are determined by the difference in price from the time a home is purchased and the time it is sold, minus the cost of any permanent improvements.However, the 1997 tax changes virtually eliminates the capital gains tax for most homeowners (the exemption is $250,000 for single homeowners and $500,000 for married homeowners).Still, it is worthwhile to save all receipts for permanent home improvements just in case. They also can be useful documentation when it comes to marketing your home when you sell.

Q: How do building codes work?
A: Building codes are established by local authorities to set out minimum public-safety standards for
building design, construction, quality, use and occupancy, location and maintenance. There are specialized codes for plumbing, electrical and fire which usually involve separate inspections and inspectors.All buildings must be issued a building permit and a certificate of occupancy before it ca be used. During construction, housing inspectors must make checks at key points. Codes are usually enforced by denying permits, occupancy certificates and by imposing fines.Building codes also cover most remodeling projects. If you are buying a house that has been significantly remodeled, ask for proof of the permits involved before you purchase to avoid future liability for fines.Resources:

Q: What are some resources for info on home improvements?
A: If you getting ready to embark on a home improvement project involving contracting help, "Ready, Set, Build: A Consumer's Guide to Home Improvement Planning Contracts" lays out a road map for selecting the right contractor, obtaining competitive bids up to what to include in a contract. There also is information on consumer rights, liens and financing.The book is available for $9.95 through Consumer Press and Women's Publications, Inc., Dept SR01, 13326 Southwest 28th St., Fort Lauderdale, FL 33330-102; (954) 370-9153.Resources:

Q: Will a neighbor's problem reduce the value of my property?
A: While it may not reduce the actual value, a cluttered landscape than detract from the positive aspects of your home. Review your local laws, which should be on file at the public library, county law library or City Hall.A typical "junk vehicle" ordinance, for example, requires any disabled car to either be enclosed or placed behind a fence. And most cities prohibit parking any vehicle on a city street too long.It also may be worthwhile to check into local zoning ordinances. An operator of a home-based business usually is required to obtain a variance or permanent zoning change in residential areas.In addition, if a neighbor's repair work produces loud noises, he may be breaking local noise-control ordinances, which are enforced by the police department.Before bringing in the authorities, you may want to make a copy of the pertinent ordinance and give it to your neighbor to give them a chance to correct the problem.Resources:

Q: What are the pros and cons of adding on or buying new?
A: Before making a choice between adding on to an existing home or buying a larger one, consider these questions:

Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value. According to Remodeling magazine's annual "Cost vs. Value Report," remodeling a home not only improves its livability but its curb appeal with potential buyers. The highest paybacks come from updating kitchens and baths and, most recently, adding on a home office, according to the survey.For more information, check out "The Do-able Renewable Home," a free booklet available from the American Association of Retired Persons, Fulfillment Department, 601 E Street, NW, Washington, DC 20049; (202) 434-2277.

Q: What are some guidelines to follow when trying to find a contractor?
A: While hiring contractors recommended by friends is usually a safe route, never hire a construction
professional without first checking him or her out . If your state has a licensing board for contractors, call to find out if there are any outstanding complaints against that license holder. Also, call you local Better Business Bureau to see if there are any complaints on file.If you are satisfied with the answers you find there, interview the contractor candidates. Ask what kind of worker's compensation insurance they carry and get policy and insurance company phone number sso you can verity the information. If they are not covered, you could be liable for any work-related injury incurred during the project. Also be sure that the contractor has an umbrella general liability policy.If they pass the insurance hurdle, next check some of their references. A good contractor will be happy to provide as many as you want.Finally, don't let yourself be rushed into making a decision no matter how competitive the market may seem. Also, never pay a deposit to a contractor at the first meeting. You may end up losing your money.

Q: How much will I spend on maintenance expenses?
A: Experts generally agree that you can plan on annually spending 1 percent of the purchase price of your house on repairing gutters, caulking windows, sealing your driveway and the myriad of other maintenance chores that come with the privilege of homeownership. Newer homes will cost less to maintain than older homes. It also depends on how well the house has been maintained over the years.

Q: Where can I get a list of architects?
A: For information on architects, contact the following: American Institute of Architects, 1735 New York Avenue, NW, Washington, DC 20006; (202) 626-7300.

Q: What repairs should the seller make?
A: Most sellers like to make all minor repairs before going on the market in order to seek a higher sales
price. In addition nearly all purchase contracts include a buyer contingency "inspection clause," which allows a buyer to back out if numerous defects are found. Once the problems are noted, buyers can attempt to negotiate repairs or a lower price.

Q: What kind of home insurance should I get?
A: A standard homeowners policy protects against fire, lightning, wind, storms, hail, explosions, riots, aircraft wrecks, vehicle crashes, smoke, vandalism, theft, breaking glass, falling objects, weight of snow or sleet, collapsing buildings, freezing of plumbing fixtures, electrical damage and water damage from plumbing, heating or air conditioning systems, according to the insurance information institute, a Washington, DC based nonprofit group for the insurance industry.Such policies are "all-risk" policies, which cover everything except earthquakes, floods, war and nuclear accidents.A basic policy can be expanded to include additional coverage, such as for floods and earthquakes and even workers' compensation for servants or contractors. Home-based business-coverage, an increasingly popular rider, does not cover liability associated with the business.Insurance experts recommend that homeowners obtain insurance equal to the full replacement value of the home. On a 2,000 square-foot home, for example, if the replacement cost is $80 per square foot, the house should be insured for at least $160,000.For personal items, homeowners can increase their coverage beyond the depreciated value of items such as televisions or furniture by purchasing a "replacement-cost endorsement" on personal property.Some experts recommend an inflation rider which increase coverage as the home increases in value.

Q: What is guaranteed replacement cost insurance?
A: Guaranteed replacement insurance is a more comprehensive policy. They tend to cost more, but they promise to cover the complete costs - less deductible - of replacing a destroyed house. With these sorts of policies, limits on the policies are not as common, because complete coverage is more explicit.

Q: When is the best time to refinance?
A: The traditional answer to that question is when interest rates fall 2 percent below your current mortgage interest rate. However, in recent years some experts have argued that refinancing may be appropriate with a smaller point spread.Some weight is often given to the length of time the owner anticipates holding on to the property. If the owner expects to keep the property for at least three or four years, then refinancing may be worthwhile.While refinancing can involve upfront costs, in many cases it is possible to roll the costs of the refinancing into the new note and still reduce the amount of the monthly payment.

Q: What about these ads for no-cost loans?
A: In many states, real estate regulatory agencies are cracking down on such advertising. The very term, "no-cost" loan, is misleading, because borrowers are actually paying a higher interest rate in exchange for not having to pay fees or closing costs up front when the loan is secured.A "no-points" loan is one for which the lender does not charge points (one point is equal to 1 percent of the loan amount). But there are other fees involved in no-point loans, as with most loans.

Q: Where do I get information on refinancing:
A: For information on refinancing, the following booklet may be helpful: "A Consumer's Guide to Mortgage Refinancings;" Federal Reserve Bank of San Francisco, Public Information Department, P.O. Bo 7702, San Francisco, CA 94120; call (415) 974-2163 to order.

Q: Can I refinance after bankruptcy?
A: Refinancing may be prudent but could be difficult after a bankruptcy. If you're considering bankruptcy, you may want to go to your current lender first and explain the situation. If you have been current in your payments, the lender may be accommodating and refinance your loan, easing your financial situation.

Q: How do property taxes work?
A: Property taxes are what most homeowners in the United States pay for the privilege of owning a
piece of real estate, on average 1.5 percent of the property's current market value. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas.

Q: Are property taxes deductible?
A: Property taxes on all real estate, including those levied by state and local governments and school
districts are fully deductible against current income taxes.

Q: How is home's value determined?
A: You have several ways to determine the value of a home.An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house.A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hope of winning your business.You also can get a comparable sales report for a fee from private comparison that specialize in real estate data. You also can find comparable sales information available on various real estate internet sites.

Q: Are taxes on second homes deductible?
A: Interest in property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics.

Q: What is an impound accountant?
A: An impound accountant is a trust account established by the lender to hold money to pay for real estate taxes, and mortgage and homeowner insurance premiums as they are received each month.

Q: Do all loans require impound accounts?
A: If you are taking out a FHA or VA loan, the lender can require an impound account to pay real estate taxes and hazard insurance premiums, as with a standard loan. Most conventional loans do not require an impound account.

	Equal Opportunity Housing
	Multiple Listing Service
	National Association of Real Estate Brokers
	National Association of Realtors

search center

services

info center

AFFILIATIONS

FAQ on Home Ownership