The Jones Center for Families Hosts Fall Festival

The Jones Center for Families in Springdale, Arkansas is an absolute gem! Remember the old saying, “You get what you pay for?” Well, the Jones Center proves the saying wrong.

The Center welcomes everyone from NW Arkansas and the surrounding areas. Residency is not a requirement. Neither is money a requirement. There is only one requirement - all visitors must behave as ladies and gentlemen.

Virtually everything is FREE.

The Center offers an unbelievable array of activities for individuals and families. Just imagine participating at no charge in:

- Ice skating on a regulation size rink (skates provided).
- Swimming or exercising in two pools.
- Programs for all ages up to and including seniors.
- Day care while a parent is using the center.
- Fitness center containing stationary weight and cardiovascular equipment.
- 300-seat chapel for weddings, receptions, showers, etc.
- Family movies.
- A one-mile walking trail.
- Nine-hole disc golf course.
- Playground accessible to all, including handicapped.
- 30 computers including Internet access.
- More than 25 meeting rooms of all sizes for birthday parties and celebrations or non-profit business groups.

As if all that were not enough, the Jones Center also hosts activities throughout the year such as the Fall Festival coming up next Saturday, October 26. At least 8,000 children and parents arrive annually for fun, music, entertainment, physical activities, arts and crafts, and food – at no cost.

There are also special programs to keep kids busy during spring and winter breaks. During the summer months, free concerts are held on the lawn.

You can also take advantage of various educational opportunities, such smoking cessation, safe baby-sitting instruction, and preparing your child to succeed.

The Jones Center for Families has been an important part of NW Arkansas since its inception in 1996. I really cannot paint a complete picture in this short space of everything it offers to the public. Seeing is believing - and I encourage you to do just that.

The Jones Center has always shone like a beacon. If you haven’t been there yet, check it out! In these tough economic times, it might be just what you and your family are looking for.

For more information:

http://www.jonesnet.org/index.html

Chili Cook-off Benefit for Fayetteville Meals on Wheels

On Monday, October 20 (next Monday evening) between 6:00 and 8:00 p.m. the 4th Annual Keller Williams Chili Cook-off will occur at the Keller Williams offices at 2418 E. Joyce Blvd. Proceeds will go to benefit the Fayetteville Meals on Wheels Program. Almost 20 cooks will be competing, so whether you like your chili hot and spicy or mild or somewhere between, there should be something for everyone’s taste. Adult tickets are $5.00 and kids are $2.00. All you can eat with all of the fixings. Hope to see you there.

FYI

A couple of interesting tidbits for those who might have deep pockets, despite the ailing economy, and have special needs or interests.

Britney Spears’ home is on the market for a mere $7.9M. Click the following link for pictures and information.

http://www.sothebysrealty.com/PropertyDetails.aspx?R=104140528&WT.mc_id=Trulia

And for those old enough to remember Roy Rogers, his ranch has been renovated and updated and is now on the market. No price given, but if you click on the following link you can get more detailed information.

http://rismedia.com/wp/2008-10-16/fridays-featured-listing-renowned-roy-rogers-double-r-bar-ranch/

Bella Vista, Arkansas – In Top 10 Healthy Places to Retire

U.S. News and World Report editors have selected beautiful Bella Vista, Arkansas as one of the top 10 healthy places to retire.

Not long ago Bella Vista was a quiet little village nestled in the rolling hills of the Ozarks, just south of Missouri. Now it has grown up and become a city of more than 24,000 people with more arriving each year.

And why not? Add recreational facilities, lakes, golf, tennis, swimming and much more to natural beauty and clean air and the result is Bella Vista.

Homes are very affordable by anyone’s standards and neighborhoods are well maintained. If you are looking for your own piece of the good life, take a look at Bella Vista.

For more information:

http://www.usnews.com/articles/business/best-places-to-retire/2008/09/18/americas-best-healthy-places-to-retire.html

Search for homes:

http://www.nwarkansashomesearch.com/
http://www.findfayettevillehomes.com/

Property Taxes are Due

Just a quick reminder that the deadline to pay property taxes is October 10.

Many home owners pay their taxes as part of their monthly mortgage payment. The annual tax is divided into 12 and the homeowner pays 1/12 each month. When tax bills are sent out in the spring, the bank pays the property tax. If this is your situation, you can relax since your property taxes have already been paid.But if your bank is not paying your property taxes as part of your mortgage and you didn't pay them last spring when the bills were sent out, then you only have a few more days to pay them. And don’t forget those pesky personal property taxes on cars, trucks, boats, etc. Those taxes are also due now, if you didn't already pay them when you got your bill last spring.

There was an option to pay taxes in three payments so if you took advantage of that, don’t forget the third and final payment is due October 10.

Late payments incur an automatic 10% penalty plus interest.

In addition to paying in person or mailing a check, Washington County offers an ePayment Service. You can pay with a Visa, MasterCard or Discover credit card and the funds will be electronically deducted from your checking account. The important thing to note if using this service is a processing fee will also be deducted. The county website states, “Because we are a governmental entity, all costs associated with the convenience of credit card usage and bank account transfers cannot be deducted from your tax amount due.”

As best I could determine, Benton County does not offer an ePayment Service but you can pay over the telephone, in person, or snail-mail.

The web addresses for Washington and Benton counties are:

http://www.co.washington.ar.us
http://www.co.benton.ar.us

Foreclosures in NW Arkansas

In an effort to bring you current information regarding foreclosures in Benton and Washington Counties, I’ve read enough statistics to make my head spin. I think it all comes down to the old saying, “everything is relative.”

Overall, the Arkansas foreclosure rate ranks right about in the middle. There are 26 states with higher foreclosures rates. The national average is one foreclosure for every 416 homes but the Arkansas rate is ‘only’ one for every 1099 homes.

Four states make everything else look good. Nevada is #1, California #2, Arizona #3, and Florida #4. It’s hard to imagine that 1 in every 91 homes in Nevada has received a foreclosure notice!

In Benton and Washington Counties, the July 2008 rate was closer to the national average - Benton County one for every 418 homes; Washington County – one for every 404 homes.

Arvest Bank took an innovative step to sell approximately 170 properties it had foreclosed on by holding one big auction in early August. Reserves were placed on all but five properties, meaning the bank would have final decision on whether to accept the offer. Arvest has not disclosed final results but in some cases potential buyers and the bank will have an opportunity to renegotiate terms.

Overall, I think it was both a bold move and a good idea. Nothing of that size has been done previously in NW Arkansas or perhaps all of Arkansas. Banks have become saddled with property they never wanted to own and they need to get them off their books.

Foreclosed properties drive down the price of surrounding homes. The sooner they are all sold, the sooner the market can begin to normalize.

For more information:

http://www.nwarktimes.com/adg/News/232968

http://www.nwarktimes.com/adg/Business_Matters/233953

http://www.nwarktimes.com/adg/News/233166

http://www.nwarktimes.com/adg/Business/233671

http://www.nwaonline.net/articles/2008/08/19/business/082008foreclosures.txt

http://www.nwarktimes.com/adg/National/236465
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=5163&accnt=64847#statetable

Bikes, Blues and BBQ in Fayetteville, Arkansas

It’s that time of year again. Time when a few hundred thousand people will descend on Fayetteville for the 9th Annual Bikes, Blues and BBQ Motorcycle Rally September 24-27.

BB & BBQ bills itself as the largest charitable bike rally in the United States! Last year more than $100,000 was donated to local charities. The rally is self-funded and does not receive any government funding.

BB & BBQ is fun for the whole family. There are the bikes, of course, which are always a sight to see. Entertainment is on various stages afternoons and evenings - much of it free. Plus you won’t want to miss an opportunity to taste some serious cooking during the barbecue cook off competition.

The raffle items this year include a Harley-Davidson Rocker C motorcycle.

Fayetteville Firefighters Association will again host the Poker Run which last year raised almost $9,000 for charity.

Y’all come!

For more information:

http://www.bikesbluesandbbq.org/

No Matter How You Look at it, NW Arkansas is a Great Place to Live!

As the days start getting a little cooler and we move into fall, one of my favorite times of year,
I thought I’d mention that NW Arkansas has been selected yet again as being in the top-ten best places to live, raise a family, work, and retire. Kiplinger Magazine recently published two articles highlighting Fayetteville and the surrounding area.

Of course, Kiplinger isn’t the only authority on the subject. U.S. News & World Report, Sperling’s Best Places, Forbes and others have all placed NW Arkansas in the top ten of their recent surveys. My family and I moved here 15 years ago and we continue to be glad we did.

NW Arkansas has a great reputation, and rightfully so.

Housing is very affordable. Cost of living is low compared to most places. On a scale where 100 is considered ‘average’ for the country, NW Arkansas comes in at a very respectable 90.

Air is clear and clean. The natural beauty of the Ozarks is everywhere. There’s a big push to go ‘green.’ The area is attracting businesses and industries that are not only non-polluting but that also are in the sustainability business. (Think consulting, water purification, packaging, electronics and lighting.)

The climate is moderate during all four seasons. Springtime is gorgeous with flowering dogwoods and redbuds everywhere. Summer is not bad by most standards. As I write this (in mid-August) my windows are open and a gentle breeze is coming in. Autumn is more beautiful here than outsiders imagine. Gold and red leaves color the rolling hillsides, some years more spectacular than others. Winters are generally mild - some snow that usually doesn’t hang around more than a few days. I grew up in northern Minnesota where temperatures of minus 30 degrees are common so I think it’s positively balmy here. I have friends who moved here in 2004 and they have yet to pick up a snow shovel. Of course there are days in summer that I wish were cooler and winter days I wish were warmer, but I’ve said that no matter where I lived.)

Even in these tough times, the economy continues to expand. Unemployment is low, falling one half a percentage point to 4.5% in Arkansas for July 2008. That’s the lowest level since April 2001, according to the U. S. Bureau of Labor Statistics.

Health care availability is excellent and quality is high.

People are friendly and polite.

The University of Arkansas in Fayetteville offers all types of sporting events and free classes to people over age 65.

Sports and recreational activities abound. There’s Beaver Lake with more than 400 miles of shoreline for swimming, boating, and fishing. There are festivals such as Bikes, Blues and BBQ, farmers’ markets, world-class golf, polo, minor-league baseball and many more activities every weekend.

Broadway shows and major stars appear regularly at the Walton Arts Center in Fayetteville.

But mainly it’s the beauty of the Ozarks coupled with affordable housing that makes NW Arkansas so appealing.

Prices have come down in the past year making housing even more affordable. At the present time, you can buy a brand new 3 bedroom, 2 bath, brick home for less than $150,000. There are previously owned homes for less. Just about anything you’ve dreamed about is available at great prices.

Go to my website http://www.judyluna.com/ and click on “Search for Homes” to do your own search. As always, if I can be of help, don’t hesitate to call me at (479) 966-0435.

Two notes worth mentioning:
The Chamber of Commerce did not ask me to write this article !
The population figure of 419,455 mentioned at http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html includes all of Washington, Benton, and Carroll counties in NW Arkansas plus McDonald County in SW Missouri. The actual population of the City of Fayetteville is approximately 68,000.

For more information:

http://www.judyluna.com/

http://www.kiplinger.com/features/archives/2008/07/real-estate-prices-in-our-best-cities-2008.html?kipad_id=47 (where you can compare housing costs in different price ranges)

http://www.kiplinger.com/features/archives/2008/05/2008-best-cities-fayetteville.html

http://www.arkansas.com/city-listings/city_detail.aspx?city=War+Eagle

First Time Homebuyer Tax Credit Explained

There has been so much talk about the recently enacted “Housing and Economic Recovery Act of 2008” and its numerous, complicated provisions that I thought I’d take a few moments to summarize the part you are probably most interested in – the First Time Homebuyer Tax Credit.

You are considered a first-time homebuyer if you have not had any ownership interest in a home in the 3-year period preceding date of purchase.

Closing date of the home must be between April 9, 2008 and June 30, 2009.

The tax credit is 10% of the purchase price up to a maximum credit of $7,500.

A single person with income up to $75,000 qualifies for the full credit. Income between $75,000 and $95,000 qualifies for a prorated portion of the $7,500 credit.

Married couples with income up to $150,000 qualify for the full credit. Income between $150,000 and $170,000 qualifies for a prorated portion of the $7,500 credit.

The credit will be applied against income tax liability. When the tax return is compiled in the usual manner, the credit would be used to lower tax liability dollar for dollar. For example, if total tax liability was $9,000, the credit would reduce the liability to $1,500. This has nothing to do with how much withholding you may have already paid. If your tax liability was $9,000 and you had already paid in $9,000 through withholding, you would receive a check for $7,500.

If total tax liability was $1,000, and you had not paid any withholding, the excess credit of $6,500 would be refunded to the taxpayer.

There are no provisions to get the credit before filing the income tax return in 2009. However, a homebuyer who qualifies for the credit could immediately reduce his withholding at his place of employment (or reduce estimated payments to IRS).

But there is a catch. It’s not “free money.”

The credit has been referred to as an interest-free loan, and with good reason. The credit must actually be repaid at the rate of 6.67% ($502.50) per year for 15 years, beginning with the filing of the 2010 tax return in spring of 2011. No interest will be charged. Let’s say a taxpayer was due a refund of $1,000 on his 2010 return. His refund would be reduced to $497.50 after repaying $502.50).

If the home was sold at a profit before the 15-year payback period ended, the unpaid balance would be deducted from the profit before the proceeds were paid to the seller. If the home was sold at a loss, the balance of the payback would be forgiven.

If the taxpayer dies before paying back all the credit, the unpaid balance would be forgiven.

IMPORTANT NOTE: This is my interpretation of the basic provisions of the Homebuyer Tax Credit. I have tried to simplify things to give a picture of what is now available but I give no guarantees. There are many complicated provisions I haven’t touched upon. As with most new laws, many details will need to be worked out, defined, and applied. You should check with your tax preparer for further provisions of the law.

And whether it’s worth it for you to apply for the credit will depend on your personal financial situation. If you need money to tide you over these tough economic times, it may be worth your while. Just keep in mind that you do have to pay it back in future years.

For more information:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf

It’s Back to Square 1 for Fayetteville High School

University of Arkansas has withdrawn its offer to purchase the Fayetteville High School. High school officials were taken off guard and were extremely surprised by the move.

The final version of $50 million offer would probably have contained some provisions for the school district to lease back the property while waiting for a new high school to be built. Now, all that is off the table and the district is back to square one.

It’s been a long, convoluted process to get back to the starting point. Space and time do not permit much detail here, but a brief summary will help:

· After lengthy deliberations, extensive research, committee meetings, and input from the public, Fayetteville School Board decided to have one high school grades 9-12.

· A new high school should be built as opposed to remodeling the existing school.

The best location would be the “Morningside” property in south Fayetteville.

The current 40-acre high school campus would be offered to University of Arkansas for $59 million, a sum that fell between independent appraisals conducted by both entities. Deadline for response to the offer was July 1, 2008.

U of A countered on June 6 with its offer of $50 million. The offer did not contain a deadline.

A group of independent investors stepped forward to request a 60-day option on the property. If granted, the option would preclude any other sale during that time. If the investors decided to buy the property, they would pay $60 million.

The school district took no action on the option offer. Subsequently, the investors withdrew their request.

On August 21, citing a decision to not leave the offer in limbo any longer, U of A officials withdrew their $50 million offer to purchase the existing campus.

It’s possible the U of A may reconsider purchasing the property at some point in the future.

Stay tuned for the next move.

For more information:

http://arkansasbusiness.com:80/article.aspx?lID=84&sID=85&ms=86&cID=Z&aID=107448.53153.119574

http://www.nwaonline.net/articles/2008/08/22/news/082208fzuawithdraws.txt

http://www.nwarktimes.com/adg/News/234962/

http://www.nwarktimes.com/nwat/News/68346/

Benton County Property Appraisals - The Saga Continues

Don’t lose this phone number: 479-271-1037. If you can get through the busy signals, it will connect you to the Benton County Assessor’s office where you can make an appointment to meet with the Equalization Board if you feel your property has been assessed too high.

Property owners who are unable to get through to the Assessor's may stop by the office in the Benton County Administration Building, fax a letter of request to (479 ) 271-1073 or mail a letter to the attention of Cathy Lee, scheduler for the Equalization Board, 215 E. Central Ave., Bentonville, AR 72712.

All letters requesting an appointment with the board should include the property owner's name, address, phone number and parcel number. If residents chose to mail a letter requesting a meeting, they should send the letter via certified mail.

Keep in mind you must contact the assessor’s office before August 20. The board will meet from August 1 to October 1 to hear why you believe your property value is incorrect. Bring along some evidence such as an independent appraisal of the property or a new mortgage on the property.

The board can adjust the property values for three reasons:
--The assessment is unfair compared with other lands of the same kind, similarly situated.
--It is appraised higher than neighboring properties with the same uses, size, materials and conditions.
--The assessment is clearly erroneous.
--The assessment is manifestly excessive.

On the one hand, we can’t point too hard at the assessor’s office for the high numbers. Assessments must be done every third year but it takes time to assess all the parcels. People must go out and physically inspect the properties. Things were still flying high during much of 2007 when the appraisals were being conducted. It was late 2007 and into 2008 when things started spiraling downhill.

On the other hand, however, I was distressed to read that when one property value has been readjusted, all similarly situated property should automatically be re-examined and that part of the law has been ignored.

Many Benton County residents have become galvanized to fight the increased appraisals. On Monday night the NW Arkansas Property Rights Association hosted a town meeting to inform residents of their rights and to help them get some answers. Present at the meeting were County Assessor Bill Moutray; Sen. Kim Hendren, R-Gravette; Larry Kelly, a local real-estate agent; Benton County Appraiser Charles Hudson Jr.; and Benton County Clerk Mary Lou Slinkard.

Now that property owner’s concerns are being brought to the forefront, Benton County officials will hopefully be taking a more proactive approach to protecting owner’s rights.

For more information:

My blog postings dated July 12 and July 29 - http://nwarealestateblog.blogspot.com/

http://nwanews.com:80/bcdr/News/64125/
http://nwanews.com/bcdr/News/64436/

Market Report for June 2008, Northwest Arkansas Real Estate

According to a recent report from the National Association of Realtors®, existing home sales in June in the US are down by 2.6% compared to May and down 15.5% compared to June of last year. For all home sales, single-family home sales declined 3.2% to a seasonally adjusted annual rate of 4.27 million in June from 4.41 million in May, and are 14.8% below the 5.01 million-unit pace in June 2007.

Total inventory in June was up by 0.2%, which represents an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May. The median price for June was $215,100 in June, down 6.1% from a year ago when the median was $229,000.

So how does NW Arkansas compare to statistics for the country? It’s different for each town, and also differs according to price range. Following are some statistics for the area with global numbers for each town (doesn’t take into account price range).

No. of Sales Median Price Av. DOM Supply (in Mo.)

Bentonville

June 2008
78 $197,950 147 20.18

June 2007
87 $196,000 140 11.70

Fayetteville

June 2008
109 $168,500 140 14.96

June 2007
135 $178,500 117 10.97

Rogers

June 2008
84 $166,500 167 18.01

June 2007
125 $178,500 157 13.64

Springdale

June 2008
82 $143,000 140 15.36

June 2007
108 $139,900 128 11.58

Bella Vista

June 2008
83 $155,000 150 13.15

June 2007
108 $162,450 135 10.72

So what do these numbers mean? In terms of months supply of homes, all of the NW Arkansas towns are above the national average, with Rogers and Bentonville significantly so. In fact, the Bentonville supply of homes on the market is almost double what is was last year.

In all cases, the Days on Market (DOM) is higher than it was last year, which means that homes are taking longer to sell. In all of the NW Arkansas towns the number of homes sold in June of this year is down, compared to June of last year. However, unlike the national statistics, more homes were sold in June of this year in all NW Arkansas towns than in May (statistics not reproduced here).

The median price for homes in all of the NW Arkansas towns is much lower than the national average. This means that NW Arkansas is still a very affordable place to live. Springdale and Bella Vista are the most affordable with a significant supply of homes in price ranges within reach of “average” folks. However, the median price range of homes in Springdale and Bentonville in June of this year is higher than that of June of 2007.

I should mention that median price is not necessarily the best indicator of whether prices are coming down or not. However, that is the best statistic we Realtors® have to work with. The median price is that price at which half of the homes sold are more expensive than the median price and half are less expensive.

From practical experience, I am finding that many offers are coming in at substantially lower prices than the list price. Buyers seem to think that all sellers are desperate, which is not necessarily the case. In addition, buyers are asking for more in the way of amenities (i.e. throw in blinds, fences, etc.) on new homes, and on re-sale homes they are asking for closing cost help and down payment assistance.

On the other hand, there are also many bank-owned homes (foreclosures) on the market. This has brought prices down, when considered from a statistical point of view. These homes are competing with “normal” homes for sale and making it difficult for the latter to sell at prices that they would usually bring.

For those who are worried about the so-called "declining" value of their home, the thing to remember is that a home purchase is traditionally a long-term investment. Real estate is cyclical, and what comes down will eventually go up. For folks who will be in their homes over a longer period of time, not to worry. These numbers will change and the market will improve. For sellers that don't have to sell right now, my recommendation is not to put your home on the market; wait a year or two.

Bottom line is that there are a lot of homes on the market now in NW Arkansas. In “realtor-speak” we have a “large inventory.” What this means for sellers who must sell now is that they must price their homes competitively for them even to be looked at, let alone sold. For buyers, it is a golden opportunity—lots to choose from at lower prices. Now is the time to buy, especially since interest rates are still low.

For more information:

http://rismedia.com/wp/2008-07-24/existing-home-sales-down-in-june/
http://www.realtor.org/research/research/ehsdata
http://www.realtor.org/press_room/news_releases/2008/ehs_down_in_june

Benton County Reappraisal Process is Complete

I no sooner posted the article (see blog posted July 12) than Benton County completed its appraisal process for property taxes.

Values are up – way up in some cases – and people are not happy. The total value of property in Benton County’ increased from $2.9 billion in 2005 to more than $4 billion this year. That includes increases in value of existing properties as well as new construction.

What many folks haven’t taken in to consideration is the fact that the last reappraisal was in 2005 and values have certainly risen since then, although not at the double-digit rates of the past several years. Instead, they seem to be looking only at the past year or so when values started coming down from their all-time high.

There is so much bad news these days it’s easy to get caught up in the doom and gloom. However, NW Arkansas is still growing and adding jobs, though not as rapidly as in the past.

As I’ve said before, real estate is local. You can’t look at California (or Florida or Nevada), for instance, and assume the same thing is happening here.

Arkansas law does provide important benefits to homeowners.

The increase in assessed value on a person’s homestead is capped at 5% per year. Thus, if the assessed valuation of the owner’s personal residence increased 9% over 2005 value, the 2009 value would be capped at 5%. It would be 2010 before the remaining 4% took effect.

Another advantage helps homeowners age 65 or older and those considered disabled as defined by Social Security Administration. It prevents the taxable assessment on an owner’s personal residence from ever increasing due to a reappraisal. Taxes can go up if improvements are made to the property or if millage rates go up, but not because of periodic increase in value.

In other words, all you have to do is notify the county assessor once you reach age 65 or become disabled and your taxable assessed valuation will be frozen forever (at least as long as you live in the same house).

(I’ve included below links to the application forms for both Benton and Washington counties.)

The new assessments will take effect January 1, 2009 with taxes due October 10, 2009.

Taxpayers can appeal the new valuation to the Benton County Equalization Board. You must make an appointment before August 20.

For more information:

Benton County Assessor’s office: 479-271-1037

http://www.nwanews.com:80/adg/News/231396/

http://www.co.benton.ar.us/Assessor/HomesteadApp.pdf

http://www.co.washington.ar.us/Assessor/Am79.htm

Is Your Home Over-Appraised?

By law in Arkansas, each county must appraise all real estate every three years. When values are increasing, as they have been in NW Arkansas for many years, that timetable actually gives a break to property owners. A home appraised at $125,000 in 2004 stayed at that appraised value in years 2005 and 2006 even as the actual value increased to $150,000 or more.

Washington County completed its reappraisals in 2007, which in retrospect appears to be when property values hit the top.

Since then, some properties have actually lost value. I know because my old home, which I just sold in May, was appraised by the county for tax purposes at $195,000. I had it listed in the MLS for $179,900. It sold for slightly less.

Speculators have gone elsewhere looking for the next boom and left behind empty homes and empty lots. Builders desperate to get out from under their construction loans are pricing homes on the lower end of any price ranges of recently sold similar homes.

With the next appraisal in Washington County not set to occur until 2010, the county assessor has taken the unusual step of asking and receiving permission of the county’s Equalization Board to examine the situation.

There are more than 90,000 properties in the county and not all properties will be reexamined.
The target will most likely be subdivisions with homes costing more than $200,000. The plan is to compare homes sold in those subdivisions with the appraised value assigned in the same neighborhood on Jan. 1, 2007.

For example, if a home appraised at $200,000 actually sold for $190,000 and that pattern is repeated on several homes in the neighborhood, the appraised value would drop $10,000. A reduction of that amount would decrease property taxes by roughly $100. (Annual property taxes are about 1 percent of a home’s value.)

In my opinion, this is the fair thing to do and I commend Washington County for taking the high road. Things would probably work themselves out at the next scheduled reappraisals in 2010, but meanwhile some people would be paying more than their fair share of taxes.

Incidentally, properties in Benton County are currently undergoing their scheduled reappraisals, which will set property values beginning Jan. 1, 2009. We would expect those values to be indicative of current values.

For more information:

http://www.nwanews.com:80/adg/News/230807/

http://www.nwaonline.net/articles/2008/07/10/columns/brenda_blagg/071108blagg.txt

Happy Fourth of July

Hope your July 4th holiday is a pleasant and safe one. Enjoy the long weekend.

Fayetteville School Board Receives $60 million Option for High School Campus

As I mentioned in my blog June 8, Fayetteville School Board offered to sell its 40-acre high school campus to University of Arkansas for $59 million. U of A officials responded with a counter offer of $50 million. The school board took no further action, deciding more time was needed to consider terms of U of A’s offer.

Now a limited liability corporation has come forward with a request for a 90-day option on the property. The usual reason for an option is to allow time to evaluate the property and consider conditions of sale.

If the board accepts the option, it could not sell the property to anyone else during that time. The corporation would have the exclusive right to buy the property for $60 million, a $10 million increase over U of A’s offer.

However, the corporation would not be obligated to go through with the purchase.

As of this writing, the school board has not taken any action on the latest offer, citing a need for more information.

U of A was caught offguard by the corporation’s request. It will be interesting to see how the university responds in light of the fact that its offer was already $9 million short of the asking price.

So now another opportunity of sorts is on the table. $60 million over $50 million means $10 million taxpayers would not have to come up with to build a new high school – if everything falls into place and the corporation does indeed buy the campus. At this point, that’s a big IF.

Do I hear $70 million? Anyone?

For more information:

http://www.nwaonline.net/articles/2008/06/26/news/062708fzfayschoolbrd.txt
http://www.nwarktimes.com/nwat/News/66578/

Now is a Great Time to Purchase a Home in NW Arkansas

It is a great time to purchase a home in NW Arkansas and here’s why:

The median home price in Northwest Arkansas is approximately $155,000 and there are well over 1,000 homes for sale for less than that. New homes, resale homes, condos, country settings, subdivisions close to work, and everything in between are available.

Prices have come down but may not come down much more. No one can accurately predict when prices will hit bottom and begin to climb upward again.

Interest rates are extremely low -- 6% or below for fixed-rate 30-year mortgages. Rates on 15-year mortgages are even lower.

Interest rates and sales prices of homes do not go up and down together so waiting to see if home prices will go lower could cost you more in the long run. For example, say you waited for the purchase price of a home to drop $10,000 but interest rates moved up by as little as one half of one point during this period. You would end up losing money because of the higher monthly mortgage payment you would be making over the life of the loan.

Rent payments can change substantially from year-to-year but a fixed-rate mortgage offers unbeatable stability.

A wide range of financing options is available for consumers in all price ranges. Lenders have plenty of money to loan to credit worthy homebuyers.

Many sellers are offering incentives to buy, such as help with closing costs or allowances for repairs.

Although local housing markets adjust periodically according to overall economic conditions, over the long term real estate has consistently appreciated.

Homeownership is a stepping-stone to personal financial security and is the single largest creator of wealth for Americans. Historically, home appreciation has risen 5-6% annually. At that rate, the value of a home doubles every 13 years.

Income tax incentives are considerable. The interest you pay on your mortgage and property taxes are deductible at income tax time.

Even better than the annual income tax deductions for interest and taxes is tax-free profit when you sell your home. Couples who own and live in their home for two years and then sell can keep up to $500,000 of the profit tax-free. (An unmarried owner can keep $250,000 profit tax-free.)

Tax-free profit can be repeated over and over. If the person or couple buys another home and lives in it home for at least two years, the same rules hold true when they sell again.

The intangible benefits of homeownership are considerable. Overall, homeownership strengthens communities. Homeowners tend to be active in charities, churches and neighborhood activities. Homeownership inspires civic responsibility, and homeowners are more likely to vote and get involved with local issues. Children of homeowners are generally better students, due in part to the stability in their lives.

All the above, plus the personal satisfaction of owning your own home should be more than enough to take action now. Homeownership is truly the cornerstone of the American way of life, and the fulfillment of the American dream.

For more information:

http://www.buynwanow.com/

Clean Up or Pay Up

Bella Vista is the latest city in Northwest Arkansas to pass an ordinance to control unsightly and unsanitary conditions. (Bella Vista became a city only 18 months ago – before that the property owners association enforced similar rules.)

Bella Vista’s recent action means all NW Arkansas cities now have laws on the books that cover such things as front yards that have been taken over by weeds, junk, or inoperable vehicles.

With the number of unsold, unoccupied homes increasing the number of complaints has also gone up. No one wants to live next door or even a few houses down the street from an eyesore. It’s not just a matter of aesthetics; overgrown yards become havens for insects, rodents and slithery creatures that few people want around.

Cities usually enforce their regulations beginning with a warning letter that states a time limit to correct the problem. Citations and fines come after that. Sometimes a city will have the necessary work done and bill the property owner. The final straw is a lien placed on the property.

For more information:
http://www.nwaonline.net/articles/2008/05/28/news/052908bzbvregulate.txt

Alignment Plans Finalized for U. S. Hwy. 412 Bypass

Arkansas Highway and Transportation Department unveiled June 4 the proposed final alignment for the U. S. Hwy. 412 northern bypass around Springdale. This project has been talked about since 1996 and may now be one step closer to reality. The bypass would begin west of Tontitown and end east of Sonora (west of the White River bridge). An entrance/exit at U.S. 71B would be the only other access.

While the alignment seems closer to finalization, the subject of financing is far from solved. Current estimates are $415 million to build the bypass – and that doesn’t include an estimated $80 million to purchase land for right of way.

In summer of 2007, estimates were $310 million for construction and $60 million for right-of-way acquisitions. The increase costs are due to inflation, increased constructions costs the fact that some of the land has been developed recently.

The Highway Department has a total of $27 million available to begin purchasing right of way and expects to start that phase before the end of this year.

Who knows when and where the rest of the money will come from. Requests to the state legislature have fallen on deaf ears.

Anyone driving the section of U. S. Hwy 412 (Sunset Avenue) in Springdale is cognizant of the fact that a bypass is sorely needed. Tractor-trailer rigs are bumper to bumper alongside cars trying to access the many businesses lining the road. There are all kinds of businesses lining the road; motels and restaurants, supermarkets, gas stations, pizzerias, second-hand stores, car lots, shoe stores, ice cream parlors, movie rental stores, and lots and lots of traffic lights. Delays and frustration are the norm.

The need for the bypass exists – the money doesn’t.

For more information:

http://www.nwaonline.net/articles/2008/06/04/news/060408fy412bypass.txt

http://www.nwarktimes.com/adg/News/227680/

Fayetteville High School Update

The Fayetteville School Board, at its meeting May 29, 2008, voted 6 to 1 to offer to sell its 40-acre high school campus to University of Arkansas for $59 million. The offer is for land and buildings, including the high school, administrative offices, and sports facilities. At a meeting last Friday, U of A officials responded with a counter offer of $50 million. Terms and conditions would still need to be worked out.

Of course, the amount is subject to much discussion. Whether it appears too high or too low depends on which side of the fence people interviewed are on. From the U of A side, some feel that even $50 million is too high, given that substantial remodeling and refitting of the building will be required. From the School Board’s point of view and that of Buildsmart (an organization which favors keeping Fayetteville HS in its current location), the offer seems low.

Another issue from the U of A point of view is where the money to pay for it will come from. Some oppose adding to student fees to finance the purchase.

A sale of this magnitude is the largest either the U of A or Fayetteville School Board has ever undertaken. An appraisal commissioned by the district has placed the value of the property at $61.28 million, while another commissioned by the university put the price at $56.4 million.

If and when the sale is accepted, Fayetteville School Board will have many more crucial items to face before a new high school is built. First is location and second is funding. (I should have said first is funding because without that, location won’t matter.)

A new high school (and land) will cost somewhere around $110 million and inflation drives up the price every day. Even with $50 million in hand, a millage increase (between 3 and 5 mills) will have to be approved by the voters and that’s tough to do in Fayetteville.

In April the Fayetteville High School Select Committee 2 recommended that a new high school be built on a 73-acre site they refer to as Morningside (701 E. Huntsville Road). The school board has authorized the superintendent to explore that purchase for $5 million.

The board will also have to decide whether to sell 100 acres it owns in the northwest section of the district since it has now been eliminated as the site of the new high school.

The whole responsibility of whether, where, when, and how to build a new high school is complex at best. There are so many what ifs ---

Will the U of A and the Fayetteville School Board be able to negotiate a price agreeable to both sides?

What if U of A buys and voters deny a millage increase?

How large a millage increase will be needed?

Stay tuned for further details.

For more information:

http://nwahomepage.com/content/fulltext/?cid=13296
http://www.nwaonline.net/articles/2008/05/30/news/053008fzfayschoolbrd.txt
http://www.nwarktimes.com/adg/News/227184/
http://www.nwanews.com/nwat/News/65523/
http://www.nwanews.com/adg/News/227921