Tax © by 401K

Compared to most town/cities in Connecticut, Stamford has fairly reasonable tax rates. Most Stamford residents pay a mill rate between 16-17. A mill is equal to $1.00 of tax for each $1,000 of assessment. To calculate the property tax, multiply the assessment of the property by the mill rate and divide by 1,000. For example, a property with a assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.

Who has the lowest mill rate in the state? Salisbury and Greenwich at just over 10 (although Greenwich also has some of the highest assessment values). Darien is close behind with at 12.2.  Continue Reading →

The real estate business is complicated and as a result, many people have misconceptions about what is right and what is wrong. Here are five of the most common:

1. In A Buyer’s Market I Should Make an Absurdly Low Offer
This is a common misconception. While it’s true that the buyer is typically in the driver’s seat during a slow market, he still shouldn’t exceed the speed limit, run stop signs or insult sellers. And that is the risk you take by offering an absurdly low price on a home.

Homes are full of emotional attachments for most owners. Offering a rock bottom price may be offensive to the seller who takes pride in the home. Even if the seller counters the offer, giving you a chance to come in higher, the damage may be done. The seller doesn’t like you and the transaction, if there is one, may be tainted.

What happens if you determine the house needs some repairs? After dragging the homeowner’s price down and offending him in the process, it’s doubtful he’ll be amenable to making repairs.

Figuring out how much to offer on a house involves walking a fine line between an insultingly bargain-basement offer and maintaining the possibility of future negotiations.

2. A Foreclosure Impacts Your FICO Score More Than a Short Sale
Who knows where this one got started? It simply is not true. According to the folks at Fair Isaac, the company that created and calculates our FICO scores, the two are treated the same – as accounts “not paid as agreed.”

There are other reasons a homeowner underwater on their mortgage may choose to pursue a short sale to avoid foreclosure, but the impact on her FICO score should not be among them.

3. I Should Wait Until the Market Hits Bottom to Buy a House
Trying to time the real estate market is an exercise in futility, yet daily I hear home buyers say they want to wait to purchase until prices are at rock bottom.

Unless you have a crystal ball, how will you know when the market hits bottom? Even the experts are only able to offer educated guesses as to when a market has reached its lowest level.

Consider this: the only way you will know that the market has reached the bottom is when it starts to go back up. By then, it’s too late and you’ve missed the best buying opportunity.

4. I Can’t Buy a Home With Less Than 20 Percent Down
We can probably blame the media for this myth. For years now we’ve been hearing about how the mortgage debacle that got the housing market into such a pickle has resulted in more stringent lending standards. While that is certainly true, there has been a lot of exaggeration of the facts.

No, a person that makes $30,000 a year most likely won’t qualify for a $500,000 mortgage, but she may qualify, depending on her time on the job and credit, for a much more reasonable loan.

In the same vein, while it’s preferable to have a large down payment, folks are still buying homes without one. Veteran’s Administration loans still require no down payment for qualified borrowers. FHA backed loans require only 3.5 percent down, again for qualified buyers.

5. I Should Price My Home Higher Than Market Value to Provide Room for Negotiation
This is a dangerous notion, especially in a buyer’s market. Buyers have too many other homes to choose from to waste time on one that’s overpriced. Instead of attracting buyers, an overpriced home repels them.

Then, there’s the appraisal. If, by some chance, a buyer does offer a price that’s over market value, the house may not appraise at that price. To save the deal you may have to lower the price to where it should have been in the beginning.

If you’ve chosen your real estate agent carefully, you will know — from the comparative market analysis — fair market value for your house. This represents what a willing buyer will pay for it. Trust your agent and list the home at a price that entices buyers and allow it to sell quickly.