Dale Team Atlanta

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Many people use these terms interchangeably, but there is an important difference, especially if you are selling your house and are trying to evaluate whether a buyer can qualify for a mortgage or not.

‘Pre-qualified’ means that a mortgage broker has spoken with the buyer, taken information over the phone, and has run a buyer’s credit. The mortgage broker deems the buyer “pre-qualified” if all the information the buyer has provided verbally is correct.

‘Pre-approved’ means the mortgage broker has actually gathered from the buyer all the necessary documentation to prove what the buyer is saying is correct.

If you are a seller, you want a pre-approval letter from your buyer’s lender. It means so much more than a pre-qualified letter.

That’s not to say the buyers are out to intentionally provide false information to lenders. It’s just that some things get lost in the translation. Here are some problems I’ve run into:

1. 1. The buyer is self-employed and reports to the lender his income. It’s not until the lender gets his tax returns that it comes out that the buyer has legitimately written off half his income, thereby qualifying him for a much smaller loan.
2. 2. The buyer tells the lender how much he plans to put down on the house, but doesn’t mention that the money will be a gift from his parents. Only when the lender asks for the documentation of funds does that fact come out. For some loans, gifted down payments can be a real no/no.

If you are a buyer and you are competing for a property that someone else wants too, having a pre-approval letter can give you the edge over the other party.

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The 4^th Quarter 2010 stats are in!

Inventories in the Atlanta market continue to be high. Even if no more houses went on the market, it would still take 11 months for the houses currently on the market to sell. The highest inventories are in the million + market, which has a 26-month supply of homes for sale. The “under $200K” market is much closer to balanced with a 9.7-month inventory.

The 4^th Q statistics show that pricing your home correctly has never been more important. Only 9% of homes sold without price drop. 27% required a price drop, netting sellers just 76% of their asking price. A full 64% of homes did not sell at all, almost certainly because they were over-priced.

Foreclosures and short sales (when a lender agrees to take less than it is owed) continued to dominate the real estate landscape. In the 4^th Q, 39.9% of all homes that sold were distressed properties, the highest percentage all year.

Monthly median sales prices in 2010 were consistently higher than in 2009 until July, when they declined to the lowest level since 2003.

Latest Real Estate News

New legislation was recently passed which provides that each county must mail a Tax Assessment Notice to all property owners once a year. If the homeowner does not agree with the value on the assessment, he/she will have 45 days from the date on the Notice to appeal the assessment. Here are the answers to frequently asked questions:

1. Is there a form to use for the appeal?
At this time, no standard form has been provided by the counties. There may be a suggested form online at the various counties at the time the notices are mailed. However, a simple letter including the following information will be sufficient to start the appeal process:
Parcel ID number
Property Address
Your daytime phone number
Your intention to appeal to either: Board of Equalization, Hearing Officer, or Arbitration (see Information below to help you decide which to choose)
Any supporting documentation you may have as to why you disagree with the value
2. When will the Notices be mailed?
Most counties have not stated when they intend to mail the notices, but it should be in the first half of the year. (Dekalb County has stated that their notices will go out mid-May)
3. When does the 45 days start?
The 45 days starts from the date on the Notice. Your appeal must be postmarked by the deadline by the U.S. Postal Service. A metered mail stamp is not acceptable if there is a question as to when it was mailed.
4. On what basis may I appeal?
Property owners may appeal based on Taxability, Uniformity or Value.
5. What supporting documentation should be included?
If you have a recent appraisal or closing statement showing a lower value, attach it to the appeal. Also, if you have a market analysis of comparable properties recently sold in your neighborhood, attach that. You can look online in most counties and see what information the assessor is using to assess your house and your neighbors’ houses. If the information is incorrect, you can include that in your appeal. The new law states that the taxpayer must be given access to all data used in determining the value. REMEMBER: sales prices establish the value of the property for the following year
6. What will my tax bill be based on if the appeal is pending when tax bills are mailed?
A temporary tax bill will be issued based on 85% of the value on the original Notice. Once the appeal is complete, an additional tax bill will be issued or a refund will be issued.

What happens after the appeal has been made?

1. If the county does not respond to your appeal within 45 days, you win!
2. If the homeowner has stated that they wish to appeal to the Board of Equalization in their original letter, The Board of Assessors (BOA) will review the appeal, can make changes, and send a notice of such to the homeowner. If BOA does not change the value, the appeal is automatically forwarded to the county Board of Equalization (BOE) and a notice of hearing date is sent to the homeowner.
3. The homeowner and the County present their cases to the BOE at the hearing and a decision is rendered at the conclusion of the hearing. The parties are notified in writing of the decision.
4. Either party can appeal to the County Superior Court. This is a jury trial and most homeowners hire an attorney to present their case here, if they didn’t have one before.
5. If the homeowner has stated that they wish to Arbitrate, a current appraisal must be provided to the BOA. The BOA will accept or reject the appraisal. If they reject the appraisal and Arbitration is set up, the decision of the Arbitrator is binding unless both parties agree otherwise.

What is the difference between the Board of Equalization and Arbitration?

A: The Board of Equalization

• - The Board of Equalization is made up of a three-person panel appointed by the Grand Jury.
• - No member of the Board of Equalization has an affiliation with the Tax Assessor’s Office.
• - The Board of Equalization is charged with hearing both sides (the property owner and the Tax Assessor’s Office) of a property value dispute.
• - After hearing both sides the panel will render a decision, which may be appealed by either party in Superior Court.
• - There is no additional cost to the taxpayer for a Board of Equalization hearing.

B: Arbitration:

• - Arbitration is a legal process defined in Georgia’s Property Tax Code indicating a specific preference for a more procedurally structured approach to a property tax appeal.
• - The arbitration process begins with certification to the Superior Courts.
• - It can be expensive.
• - A Superior Court Judge will appoint a referee (an attorney) to conduct the hearings on the property tax appeal.
• - The referee will schedule an initial meeting where each party will name an arbitrator.
• - Arbitrators must be either a licensed appraiser through the Georgia Board of Real Estate Appraisers or an attorney.
• - At the agreement of both parties, the referee may act as a single arbitrator.
• - The panel of three arbitrators sits as a jury when both sides present testimony.

If you have any more questions about all of this, don’t hesitate to call me at 404-314-7052.

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