Tuesday, July 31, 2012

No more agricultural well permits in the Flint River Basin!

EPD Restricts well permits in the FRB.

Post by Mike Flynn

With this restriction you can expect a few market reactions. 1 - The price of irrigated farm land will increase. 2- The cost of food production will increase. 3 - Dry land may see some drop in value.

How long will the suspension last? Who knows? Since we are in a 24" rain deficit, it may last a long time.

Monday, July 16, 2012

Is this the next use for eminent domain power?

Post by Mike Flynn

This is an interesting report about a few California governmental bodies joining forces to try and exercise their eminent domain power to stem the housing crisis.

In short, the governments will seize the homes, erase the current lien holder, then renegotiate with the current home owner to reduce the balance of the loan and keep the property occupied.

California eyes plans to seize property.

I can think of few problems here. 1 - This is not the proper role of government. Let the free market work. 2 - If the plan is being designed by Wall Street execs, like the story says, you can bet the ultimate winner won't be the home owner or the tax payers.

Thursday, May 31, 2012

Once again the Herald misses the point.

Post by Mike Flynn

While the body of the story below is correct, the author made the following quote in the comments below the story:

As far as assessments go, the state inacted a three-year moratorium on assessments that ended this year, which also required what was tantamount to a revaluation on property. If your assessment went up, it's likely because A. you had some improvements to your home or B. The value of your home increased. Since assessors now have to figure in fair market value and comparable sales, many assessments actually went down. You apparently were just unfortunate enough to have yours increase.

Where did the writer get that information? Maybe from one of the tax assessors? Because if he had done any real research, he could find NUMEROUS examples of overvalued property. I understand these guys are over worked and under paid, but his comment below the story in just not accurate. Again... the digest value did not grow, it has been inflated.

Also consider the issue of the moratorium. The State froze values at the peak. Real estate went manic from 2002 to 2006, then the wheels came off. Values began to plunge around 2008. Then they were frozen - by the State. Meanwhile, the plunge continued.

Now that the moratorium is over, guess what, properties are over valued. If the reporter would just do some UNBIASED research he too would discover that the digest is over valued.

So if this expiration of the moratorium "was tantamount to a revaluation on your property", where was the army of hourly assessors? When where they given an hour long training session by watching a simple video? What company was outsourced to perform this RE-VAL?

As far as his B answer goes.... that shows a lack of real World experience or knowledge. He could also find many examples of property that has not been written down even with sales (more than 10% below subject) just a few doors down on identical property.

County short fall to be filled by fund transfer.

Monday, May 21, 2012

The tax digest did not grow, despite what you may read.

Post by Mike Flynn

A completely clueless report!

What is missing in the above report is the reality of our current situation. The reporter states that the digest has grown. That is what Denver Hooten said, so he reported it.

The truth of the matter is the value of the digest has been inflated, and since property values are in decline, many owners will be appealing for write downs.

How much over valued is the digest? Well lets look at one specific property to give you an idea.

710 Van Buren is a multi-family unit currently on the market for $29,000. It has five apartments that can be rented for a gross of $870 per month. The property is in distressed condition and has been on the market for 761 days.

Now let's examine how that property is reported on the digest. The property is identified as parcel 0000D/00010/032 and is carried on the digest at a value of $107,900 dollars.

So who is right? For a period of 761 days the free market has rejected this property at a value of $29,000, but lets give them that value just to make a point.

The digest value of $107,900 minus the market value of $29,000 gives us an over valuation by the county of $78,900. 710 Van Buren is over valued by 372%.

This is an extreme example, but there are others. Many others. 

Good commercial site - Slappey Drive

View Larger Map

Listing information - 1307 North Slappey Drive - With a traffic count of over 26,000 cars per day, this one acre lot on Slappey is prime for redevelopment. It has 195' on Slappey - 220' on 7th and 220' of rear alley access. Call Mike at 229-376-2361 for more information.

Thursday, May 17, 2012

Property owners have the right to appeal.

Post by Mike Flynn

Citizens of Dougherty County know that millage rate increases are in their future. The county, city and school board all are projecting short falls. The school board may be as much as $9-million short, and the city is relying on MEAG money to make ends meet.

The one positive aspect of the current real estate market is that owners should, at very least, be given a reduction in the fair market value of their property.

The deadline for appealing the value of your property is 6/15/2012.

You can obtain the appeal form from the Tax Office and valuations of other properties.
Always check both the “value” and “uniformity” box.

Until you receive a final decision from the Board of Equalization or Arbitration, your taxes will be reduced 15% by appealing. Additionally, the Tax Assessors are barred from raising valuation of your property for two years.

Under a recent statute, if you obtain a reduction in the value of your property by an appeal, the Board of Assessors are barred from increasing your valuation for the next two years O.C.G.A. Sec 48-5-299(c).

Since our city and county have announced their consideration of raising our millage rate (which is already one of the highest in Georgia) it behooves you to take the time to investigate your property’s valuation and its uniformity.

You may access recent sales data in your neighborhood at the following public web site:http://www.qpublic.net/ga/dougherty/  Recent sales can be used to establish the market value of your property.

If you need further assistance please contact me at 229-883-6100.

Tuesday, May 8, 2012

So now the lenders are blaming the appraisers.

Post by Mike Flynn

Has anyone seen a story where a lender takes any responsibility for the current condition of the real estate market? There have been lenders that blame borrowers, Realtors and now appraisers.

Lenders point the fingers appraisers.

The truth of the matter is we all hold some of the blame for allowing the system to run out of control. We all bought into the mania. The entire World did. So now we ALL, this means you lenders too, need to get this market moving again.