Both Houses OK Tax Credit Extension, Expansion

The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.

The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly.

“REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”

Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.


Source: The Associated Press (11/5/2009)

8 Ways to Spruce Up Your Listing's Curb Appeal

Spring is on it's way. The weather man assures us that we only have a day or two more of the cold and it will then start warming up! Here are some ideas for once the snow is gone...

Staging a yard can give a home the all-important, buyer-pleasing curb appeal. Here are some suggestions that are both inexpensive and easy.

• Make it green. Balancing the pH level and feeding the lawn lots of nutrients will give it a lush and healthy look.
• Trim trees and shrubbery. Overgrown branches hide a home’s good looks.
• Mulch everything. Mulch gives flowerbeds visual appeal.
• Edge the beds. Edging makes everything look neat.
• Power wash the siding, sidewalks and patios. Power washing gets rid of all the winter grunge.
• Plant annuals. Lots of geraniums, impatiens and petunias brighten up the look.
• Plant a garden. If the Obama's can do it, so can everyone else.
• Hang a hammock. It suggests life is easy.
  
  Source: The Wall Street Journal, June Fletcher (04/03/2009)

Now is the Time to Buy!!!

Every year the REALTORs in our area are given statistics by Bruce M. Closser, MAI, SRA, CRE at Closser Associates, Inc. in Marquette. These statistics represent the state of our housing market here in the Marquette area. We received an update from Bruce this week that suggests that our housing market is on the upswing. As with any sales environment, housing depends heavily on supply and demand. In general when the inventory is higher, more people are selling and less are buying, causing prices to fall. When the inventory decreases, more people are buying and less are selling, causing prices to increase. We have seen three consecutive quarters with a decrease in inventory, which would suggest that the current "buyer's market" may be on the way out. I am advising my clients that if they want to catch the market when it's a great time to buy, now is the time to do it, before we start seeing an upswing in pricing again.

Here is an excerpt from Closser's update...
"We have just completed our survey of MLS listings in the study area for the 2nd quarter, 2009. When we presented our 2008 Residential Market Analysis in January, we reported that the average number of residential listings for 2008 was up substantially over 2007 (an average of 246 in 2008 compared to 199 in 2007, or an increase of 24%). We also noted that the fourth quarter of 2008 showed a decline in listings as compared to the fourth quarter of 2007 (-17%) and that this pattern was repeated in the first quarter of 2009, which was down from the first quarter of 2008 (-19%). We can now report that this trend is continuing into the second quarter of 2009. Average listings in the study area for the 2nd quarter 2009 were 194, compared to 249 in the 2nd quarter 2008, a decline of 28%. We now have seen three consecutive quarters of declines in the number of listings compared to the corresponding quarters of the previous year. It appears that the number of listings peaked in the period from the 4th quarter, 2007 through the third quarter, 2008 and have been declining since then."

If you have any questions or would like to discuss, please feel free to call me at (906) 362-4747

Take Care,
Chris

Amid Rate Drops, Mortgage Applications Soar

With interest rates approaching reaching historic lows, the application volume for mortgages jumped a seasonally adjusted 48 percent last week compared with the previous week, according to the Mortgage Bankers Association's weekly survey.

Application activity for the week ending December 19th was 124.6 percent over the same period a year ago,the Washington, D.C-based MBA said. The spike in applications coincided with another drop in mortgage rates, as the government's efforts to unfreeze the residential-mortgage market show further signs of having the desired effect.

Applications to refinance existing mortgages increased 62.6 percent on a week-to-week basis, while applications filed for mortgages to buy homes increased a seasonally adjusted 10.6 percent.

Refinancings made up 83.2 percent of all applications filed last week, up from 76.9 percent the previous week.

According to the MBA survey, interest rates fell across the board:

• Rates on 30-year fixed-rate mortgages averaged 5.04 percent last week, their lowest level in more than five years. This was down from 5.18 percent the previous week.
  
• Fifteen-year fixed-rate mortgages averaged 4.91 percent, down from 4.93 percent the week before.
  
• One-year ARMs averaged 6.36 percent, down from 6.63 percent.

Source: Mortgage Bankers Association and MarketWatch (12/24/08)

Happy Holidays from Our Family to Yours!!!

Wishing you and your family good health, great spirits, festive holidays, and a prosperous 2009!

Chris, Jen, and Josh Cosco

(and Buddy too!)

5 Ways to Give Your Home Character

Far too many of today's homes and communities lack character, says urban designer and author Marianne Cusato, a featured speaker at this week's Sustainable Development & Restoration Summit in Newport, R.I. Urban sprawl is largely responsible for poorly constructed communities popping up across the country, Cusato says. It's resulting in homes that lack energy efficiency, cities with poor layouts, and long, congested commutes.

So how do you avoid the cookie-cutter look and create a sense of identity for your house? Start by using older homes as a model, Cusato suggested.

• Use four-sided architecture. Many home designs focus exclusively on the front, but the side of the home can be just as important and prominent. For example, windows on the side of a home are not only aesthetically pleasing but they also are functional – they offer cross-ventilation for cooling the home during the summer months to curb air conditioning costs and they allow more light to enter the home.
• Use color. Think beyond beige. Color can add more identity to a house. For example, if all the homes on the block have the same architecture, the color of the exterior can be one way to differentiate and add more character to the home.
• Less is more. Don’t overdo it on design elements to the exterior of a home; Too many details can make a home lose character. Focus on creating a hierarchy of most important elements. For example, the entryway and the side windows are prominent areas. Be functional, not just stylish. Shutters along a window of a home that aren’t functional and don’t close, don’t make much sense. The towering, grandiose entryways on many McMansions won’t provide much covering when it’s raining outside.
• One aspect of good design is that it’s functional, Cusato said. Connect with the outdoors. The home doesn’t have to be as big inside if it offers livable outdoor space. For example, a side private garden, front porch, and a public area near the house can connect home owners more to the outdoors.

By Melissa Dittmann Tracey for REALTOR® magazine online

Winter Parking Ban and Fall Brush Collection

If you are a resident of the City of Marquette, I thought you might find this info about the Winter Parking Ban and Fall Brush Collection to be useful.

Winter Parking Ban
If you live in the City of Marquette, please note that the winter parking ban for all city streets goes into effect on Nov. 1. The winter parking ban requires owners of vehicles to find off-street parking between the hours of 1-6 a.m. each morning. The fine for violating the ban is $50. The winter parking ban is in effect until April 1. You are encouraged to find off-street parking for your vehicles well in advance of the ban going into effect.

Fall Brush/Leaf Collection
If you use the "green bag" garbage system, the following information may be of interest to you.

The City of Marquette will begin its brush and leaf collection shortly. Check out www.mqtcty.org to find out when your street will be collected and what is allowed for pick up. The brush and leaf collection is available only to those city residents who use the “green bag” garbage system. This service is supported by fees, not taxes.

All residents are asked to observe the following rules:

• These collections are for brush, leaves, grass clipping and garden debris only. NO rubbish is allowed. Bags containing garbage or other rubbish mixed with yard waste will not be collected
• Brush and leave piles should not be combined. Brush and leaves are collected on separate weeks. Leaves will not be picked up on the brush week, nor brush on leaf pickup weeks.
• The volume to be collected from each property is limited to one pickup load (a pile approximately 12 feet long by 6 feet wide and 5 feet high).
• Brush and/or leave piles should be neat and kep on your own property. For brush, the cut ends should be facing the back of the curb.
• Pile your yard waste on the lawn next to the street edge, NOT in the gutter or on the street pavement.

Crews will collect loose or bagged leaves Oct. 27-31. Crews will return to the same routes Nov. 3-7 but will collect only bagged leaves. Do not use the green city garbage bags for yard waste.

If you miss the designated dates for your area, you are asked to deliver any yard materials that need disposing of to the composting site on Lakeshore Boulevard (one block from Hawley Street). The site is open on Mondays and Wednesday from 3-7 p.m. and Saturdays 9 a.m. – 4 p.m. The site closes Nov. 22 for the season.

Week One (Oct. 20-24) is for brush pick up. Week Two (Oct. 27-31) is for loose or bagged leaves. Week Three (Nov. 3-7) is for bagged leaves only. Go to www.mqtcty.org to find out which exact day of the week is designated for your street.

To learn more about the parking ordinance or brush/leaf collection, go to the city’s Web site or call the Public Works office at 228-0444.

8 Ways to Make a Home Sell Faster

Simple fixes and staging practices can focus buyers' attention in the right places and keep them from getting sidetracked by personal items in the home. Here are some staging suggestions from Deborah Ehrlich-Layne of Staging Plus in Tampa, Fla., Handyman Matters, and HGTV's The Stagers.

• Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious.
• Pack up the too-personal. Don't leave toiletries on the counter. Stash family photos.
• Be prepared for snoops. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain.
• Make sure things work. Dripping faucets, burned-out light bulbs, and squeaking hinges detract from the home's appeal.
• Think "white-glove clean." Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral.
• Make sure the front door is clean and the hardware polished. Power-wash walkways.
  Store furniture that makes rooms feel crowded.
• Show every room for the kind of room it is. Maybe you've turned your formal dining room into a home office. Get rid of the desk and computer, and bring back the dining table and chairs.

Source: The Dallas Morning News (09/05/2008)

Plenty of Positive Housing Market News Today

New-Home Sales Surge in Northeast
Sales of new homes were up 3.3 percent in April, the first increase in six months, according to the U.S. Commerce Department’s monthly report.The rebound reflected a 41.7 percent surge in demand in the Northeast. Sales were up 8.3 percent in the West and 5.8 percent in the Midwest. They fell by 2.4 percent in the South.The inventory of unsold new homes was down slightly to 10.6 months’ supply at the April sales pace, compared with 11.1 months in March.The increase brought sales to a seasonally adjusted annual rate of 526,000.The median price of new homes sold in April fell to $246,100, down 4.2 percent compared with April 2007.
Source: The Associated Press, Martin Crutsinger (05/27/2008)

Plenty of Positive Market News Today
Hungry for a little good real estate news? Leon d’Ancona, president of IMS Inc., has something to cheer you up.D’Ancona, who provides real estate information to the industry, has set up a Web site that lists 2,319 markets in the United States where homes are selling well. For instance, Loganville, Ga., homes sold 38.5 percent faster in April than they did in March, and sales of homes in Avondale, Ariz., increased by 64 percent in April compared with March"The problem with glass-is-half-empty stories is that they have an undue psychological impact on markets that is not borne out by all the facts," says d’Ancona. "We know, because it's our business to know, that there are hundreds of cities and thousands of neighborhoods in the United States right now where the market is very healthy, thank you.”
Source: IMS Inc. (05/27/2008)

Purchase Mortgage Applications Rise
Mortgage applications fell 4.6 percent last week on a seasonally adjusted basis to 593.3 from 621.6 the previous week, the Mortgage Bankers Association says. On an unadjusted basis, the index also declined 4.6 percent compared with the previous week and was down 7.5 percent compared with the same week last year. The decline was driven by an 8.9 percent decline in refinance applications, whose share decreased to 46.1 percent from 48.2 percent the previous week. **Purchases actually increased 9.1 percent.
Mortgage rates were up marginally:
30-year fixed-rate mortgages increased to 5.96 percent from 5.90 percent
15-year fixed-rate mortgages increased to 5.49 percent from 5.42 percent
1-year ARMs increased to 6.92 percent from 6.71 percent
Source: Mortgage Bankers Association (05/28/2008)

New Home Owners - 8 Skills Every Home Owner Should Master

These are skills every home owner should master to save lots of money over the years. Most can be tackled without fancy tools, although it helps to have a variable-speed power drill.

1. Replace a door lock.
2. Change furnace and air conditioning filters.
3. Find a stud in wall.
4. Learn to install wall anchors.
5. Hang a ceiling fan.
6. Drive drywall screws (to repair drywall).
7. Master a caulking gun.
8. Replace the flapper ball in the toilet.
   

Here are some books that are GREAT to have handy. They each contain information and helpful full color photos on home do-it-yourself projects:

• "The Reader's Digest Complete Do-It-Yourself Manual." First published in 1973, it was last updated in 2005. A great all-around book. Amazon Link
• "Home Depot's Home Improvement 1-2-3" (Meredith Books, 2003, $34.95). Clear, helpful visuals. Home Depot Link
• "Home & Garden Television's Complete Fix-It" (Time Life, 2000, $29.95). Amazon Link

Source: The News & Observer, Allen Norwood (05/17/2008)

How to Hold a Successful Garage Sale

Garage sales can be a great way to get rid of clutter — and earn a little extra cash — before you sell your home. But make sure the timing is right. Garage sales can take on a life of their own, and it might not be the best use of your energy right before putting your home on the market. Follow these tips for a successful sale.

1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.

2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.

3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.

4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.

5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.

6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.

7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)

8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.

9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.

10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.

11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.

12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!

Reprinted from REALTOR® magazine (Realtor.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2008. All rights reserved.

Spring is here...

It's official... in the last week all the snow has melted from our yard, the crocus that Jen planted in the back yard have bloomed, the daffodils in the front yard are sprouting, a Robin Red Breast was fishing for worms on the lawn last night, and I've personally witnessed three different flocks of Canadian Geese flying in V formation overhead. SPRING HAS ARRIVED!!!!

In honor of our April Blizzard...

I first read this joke about 8 years ago when my family and I were living in Washington state south of Seattle. We were tired of the rain, so much so, that every now and then we would go up to Snoqualmie Pass in the mountains for a "snow fix" when we were feeling homesick for our U.P. winters.

Now with the unusually late and heavy snow storms we've been having this year I feel as though cabin fever has progressed into a state of cabin paranoia.
Will it ever melt?
What if there will be no summer this year?
I'm actually looking forward to cutting my grass - WOW!

Any way - I thought the Diary of a Snow Shoveler was a fitting blog entry for today.
Enjoy...

Diary of a Snow Shoveler
December 8 - 6:00 PM. It started to snow. The first snow of the season and the wife and I took our cocktails and sat for hours by the window watching the huge soft flakes drift down from heaven. It looked like a Grandma Moses Print. So romantic we felt like newlyweds again. I love snow!

December 9 - We woke to a beautiful blanket of crystal white snow covering every inch of the landscape. What a fantastic sight! Can there be a more lovely place in the Whole World? Moving here was the best idea I've ever had. Shoveled for the first time in years and felt like a boy again. I did both our driveway and the sidewalks. This afternoon the snowplow came along and covered up the sidewalks and closed in the driveway, so I got to shovel again. What a perfect life.

December 12 - The sun has melted all our lovely snow. Such a disappointment. My neighbor tells me not to worry, we'll definitely have a white Christmas. No snow on Christmas would be awful! Bob says we'll have so much snow by the end of winter, that I'll never want to see snow again. l don't think that's possible. Bob is such a nice man, I'm glad he's our neighbor.

December 14 - Snow lovely snow! 8" last night. The temperature dropped to -20. The cold makes everything sparkle so. The wind took my breath way,but I warmed up by shoveling the driveway and sidewalks. This is the life! The snowplow came back this afternoon and buried everything again. I didn't realize I would have to do quite this much shoveling, but I'll certainly get back in shape this way. I wish l wouldn't huff and puff so.

December 15 - 20 inches forecasted. Sold my van and bought a 4x4 Blazer. Bought snow tires for the wife's car and 2 extra shovels. Stocked the freezer. The wife wants a wood stove in case the electricity goes out.I think that's silly. We aren't in Alaska, after all.

December 16 - Ice storm this morning. Fell on my ass on the ice in the driveway putting down salt. Hurt like hell. The wife laughed for an hour, which I think was very cruel.

December 17 - Still way below freezing. Roads are too icy to go anywhere. Electricity was off for 5 hours. I had to pile the blankets on to stay warm. Nothing to do but stare at the wife and try not to irritate her. Guess I should've bought a wood stove, but won't admit it to her. God I hate it when she's right. I can't believe I'm freezing to death in my own living room.

December 20 - Electricity's back on, but had another 14" of the damn stuff last night. More shoveling. Took all day. Damn snowplow came by twice. Tried to find a neighbor kid to shovel, but they said they're too busy playing hockey. I think they're lying. Called the only hardware store around to see about buying a snow blower and they're out. Might have another shipment in March. I think they're lying. Bob says I have to shovel or the city will have it done and bill me. I think he's lying.

December 22 - Bob was right about a white Christmas because 13 more inches of the white stuff fell today, and it's so cold it probably won't melt till August. Took me 45 minutes to get all dressed up to go out to shovel and then I had to pee. By the time I got undressed, peed and dressed again. I was too tired to shovel. Tried to hire Bob who has a plow on his truck for the rest of the winter; but he says he's too busy. I think the a**hole is lying.

December 23 - Only 2" of snow today. And it warmed up to 0. The wife wanted me to decorate the front of the house this morning. What is she nuts!!! Why didn't she tell me to do that a month ago? She says she did but I think she's lying.

December 24 - 6". Snow packed so hard by snowplow, l broke the shovel. Thought I was having a heart attack. If I ever catch the son of a bitch who drives that snow plow I'll drag him through the snow by his you know what and beat him to death with my broken shovel. I know he hides around the corner and waits for me to finish shoveling and then he comes down the street at 100 miles an hour and throws snow all over where I've just been. Tonight the wife wanted me to sing Christmas carols with her and open our presents, but I was too busy watching for the damn snowplow.

December 25 - Merry fricking Christmas! 20 more inches of the damn snow tonight. Snowed in. The idea of shoveling makes my blood boil. God I hate the snow! Then the snowplow driver came by asking for a donation and I hit him over the head with my shovel. The wife says I have a bad attitude. I think she's a fricking idiot. If I have to watch "It's A Wonderful Life" one more time, I'm going to stuff her into the microwave.

December 26 - Still snowed in. Why the hell did I ever move here? It was all HER idea. She's really getting on my nerves.

December 27 - Temperature dropped to -30 and the pipes froze, plumber came after 14 hours of waiting for him, he only charged me 1,400 to replace all my pipes.

December 28 - Warmed up to above -20. Still snowed in. THE BI**H is driving me crazy!!!

December 29 - 10 more inches. Bob says I have to shovel the roof or it could cave in. That's the silliest thing I ever heard. How dumb does he think I am?

December 30 - Roof caved in. I beat up the snow plow driver he is now suing me for a million dollars not only the beating I gave him but also for trying to shove the broken snow shovel up his ass. The wife went home to her mother. 9" predicted.

December 31 - I set fire to what's left of the house. No more shoveling.

January 8 - Feel so good. I just love those little white pills they keep giving me. Why am I tied to the bed?

How is a real estate agent paid???

From time to time I will have a buyer or a seller who is unsure of how I am paid. This is more prevalent with my first time home buyers. So I thought this would be a good forum to give a brief overview.

Real estate agents almost always work on commission only and are not salaried employees nor are they paid hourly. The commission on a home sale is paid to the listing agent (representing the sellers) and selling agent (representing the buyers) at the closing of a real estate sales transaction and is almost always paid entirely by the seller of the home.

Commissions are shared between the listing and selling agents. A standard real estate commission on a home in our area is 6% (Commercial and land are sometimes more).

So let’s say that a home sells for $100,000.
Sales price: $100,000
Commission: 6%
Total commission: $6,000 (6% of $100,000)
Listing agent: receives 3% (of $100,000) = $3,000
Selling agent: receives 3% (of $100,000) = $3,000

Many people know this much but are unaware of what happens next...

Each of the agents usually will not take home $3,000. The real estate brokerage or agency that the real estate agent works for will still receive a percentage of the commission. The agency takes a cut of all agent commissions in order to pay overhead costs such as rent or mortgage for physical location, front office employees, liability insurance, association dues, state employee costs and taxes, small business taxes, etc.

Depending on the agency commission structure which varies from company to company the commission split between agency and agent could be 50/50, 60/40, 70/30, 80/20, 90/10. So, instead of the agent receiving the full $3,000 in the above example, his or her commission may actually be anywhere from $1,500 (50/50 split, agency gets $1,500) to $2,700 (90/10 split, agency gets $300). The agent may also be required to pay a “desk fee” or rent for their office space at the company and/or other expenses.

Real estate agents are also considered self employed so they are usually responsible for every expense required to list and sell their client’s homes. This includes everything from photo copies to computers and everything in between as well as TV advertising, homes guide advertising, newspaper advertising, website advertising, mailings, business cards, postage, FedEx fees, plat maps, membership dues, licensing fees, Errors & Omissions Insurance, real estate signs, etc. These expenses can be astronomical. Most are tax deductible but many new real estate agents will not make it past their first year unless they have a considerable nest egg to start off with.

Every agent is different, every company is different but in general this is a good synopsis of how the commission structure works. Some agents or companies will offer their services for less, but it usually comes at the expense of full service and advertising. Most discount agencies will put the listing on the local MLS and limit their advertising to free resources. It’s one more instance of the classic “You get what you pay for.”

For All the Brett Favre Fans Out There...

Congratulations to Annette Summersett from the Upper Peninsula for her musical video tribute to Brett Favre - 100,000 hits and climbing on YouTube. If you're like me you may shed a tear. :)

http://www.youtube.com/watch?v=caqr2zecCUs#

Local Millage Rates

My clients often ask me about property taxes, how they work in Michigan, and which areas in Marquette County have the most expensive and least expensive millage rates. In Michigan the state equalized value is approximately 50% of the home value. If you are living in the home and declare 100% homestead in that property the rate is less than if you use it as a second home or income property. In general a "Non-homestead" home costs about 18 more mills than a "Homestead" property.

Because of Proposal A's taxable value cap, the taxable value of property may be significantly less than state equalized value (one-half of estimated market value). Proposal A was put in place so that a home owner's taxes won't increase too quickly leaving them unable to pay. However, in the year after a property is sold, the taxable value of property will likely increase to the state equalized value. In estimating property taxes on property that will be purchased, use the state equalized value of the property, not the taxable value, or use one-half of the estimated purchase price. Hope that's all clear.

As far as millage rates go they can vary a great deal from one city/township to another. Here is a list of local 2007 homestead millage rates. Let's say you were purchasing a home for 100,000 in the city of Ishpeming. We would divide the purchase price by 2 to get 50,000 (taxable value). Ishpeming's millage rate is 43.3376 so we would then multiply $50,000 by 4.33376% for a total of $2166.88 per year.

You'll notice that several of the townships have different millage rates according to which school system the property falls under.

City/Township
City of Ishpeming - 43.3376
City of Negaunee - 39.4929
City of Marquette - 34.1615
Ewing Township - 30.8223
Champion Township - NICE Schools 29.9213 Powell Schools 25.7516
Richmond Township - 27.7458
Humboldt Township - NICE Schools 27.7776 Republic Michigamme 24.2079
Negaunee Township - 26.0369
Turin Township - 25.9703
Michigamme Township - Republic Michigamme Schools 25.9401 NICE Schools 29.5098
Marquette Township - Marquette Schools 25.2072 Gwinn Schools 23.9072
Chocolay Township - 23.9375
Forsyth Township - 23.7612
Republic Township - 23.6203
Ishpeming Township - NICE 23.3027 Ishpeming 25.1830 Powell 19.1330 Negaunee 23.2514
Sands Township - Gwinn Schools 22.2340 Marquette Schools 23.5340
Tilden Township - 22.8569
Ely Township - 22.8560
Wells Township - 21.4043
Skandia Township - 20.9919
Powell Township - 20.8172
West Branch Township - 19.5733

Thanks Guys!!!

Pictured from left to right

Eric McAuliffe, Adam Gannon, Chris Cosco, Ken Godfrey (NMU Athletic Director),

Chris Forsberg, Zak Green, Josh Cosco, Andrew Short, and Kyle Annelin.

I'd like to thank to my son Josh and his 6 friends for joining me at the NMU Berry Event Center for the first round of the Central Collegiate Hockey Association play-offs on March 8th! I had a great time. I've never seen six pizzas disappear so fast!!!

The NMU Wildcats went on to defeat the Michigan State Spartans in their three-game series in the second round of the play-offs and then to a 2-1 win over Notre Dame in the CCHA Third-Place Game on Saturday March 22 at Joe Louis Arena. Great job Cats!!!

National Recognition for Marquette Again...

Outdoor Life Magazine names the city of Marquette as number seven of the 200 Best Places to Live. Recognized as the source for hunting and fishing adventure, the magazine ranked the top towns for hunters and anglers to live. This is what they had to say...

Leading Appeals: Huge diversity of fish, from native brookies to rainbows and lake-run brown trout to steelhead, salmon, lake trout, walleye and pike.

Amenities: Upper Peninsula's largest medical center, Northern Michigan University and thriving retail and arts scene.

Bottom Line: Trout share space with smallmouth in the U.P.'s pristine streams, and more than 100 lakes are accessible within a half-hour of downtown Marquette. The deer opener is like a national holiday here.

One of the best salmon and steelhead towns in the nation is hundreds of miles from the ocean. Just outside this thriving college town in Michigan's Upper Peninsula, anglers cast to surly Chinooks, fight chrome-bright steelhead and play colorful lake-run brown trout. Inland anglers prospect dozens of rivers for trophy brook trout and woodland lakes hold walleye, northern pike, whitefish and crappie. But Marquetters save their vacation time for deer season, when the U.P.'s public land fills with downstaters looking for trophy bucks. Bear, ruffed grouse, ducks, coyotes, rabbits and a growing population of wild turkeys provide plenty of hunter days on the Hiawatha and Ottawa national forests and smaller state parks of the area. "The coolest thing about living here is the public access," says fishing guide Brad Petzke. "I fish hundreds of miles of rivers every year and, because of our liberal stream laws, there are only a few spots you can't access." Fishing is always good in the streams that feed Lake Superior and trophy lake trout are available in the big lake itself.

FOR A COMPLETE LIST OF THE TOP 200 TOWNS AND THEIR RANKINGS, CLICK HERE

Lake Superior Sunrise!!!

Although most have Friday, Saturday and Sunday off this week in observance of Good Friday I myself am booked with several showings throughout today and tomorrow. It's great to be busy and I enjoy working with my clients, but I have to admit at 6am this morning as I was dragging a comb across my head and chugging coffee in an effort to revitalize I was feeling a bit uninspired. My wife, son, and "Buddy" the dog were still sound asleep as I left the house and while backing out of the driveway I thought "It's not even light out for crying out loud."

Then I arrived at my office and was met with this view from my office window. Ok - so maybe getting up early and coming to work on a holiday is not so bad after all. Sometimes the world has a way of reminding you how fortunate you are. I hope you and yours have a wonderful Easter.

Marquette County - Real Estate Market Snapshot

Once a quarter I plan to provide a quick "snapshot" of the Marquette County Real Estate Market.

This will include only residential sales that were listed and sold in the North Central MLS in Marquette County. This does not include vacant land, multi-family units, commercial buildings, properties sold for sale by owner or sales outside of Marquette County.

There have been 61 residential sales in Marquette County from Jan. 1, 08 to Mar. 19, 08.

• The average sale price of those residential sales was $128,878.93.
• The average home sold had 3 bedrooms and 2 baths.
• The average square footage was 1,787 sq ft
• The average cost per square foot was $72.75
• The average days on market was 168.

Sales by area...

• Big Bay = 1
• Gwinn = 2
• Ishpeming = 14 *Average Sales Price $70,158.57 ; Price Per Sq. Ft. $45.00
• Marquette = 32 *Average Sales Price $168,339.84 ; Price Per Sq. Ft. $98.81
• Negaunee = 7 *Average Sales Price $101,585.71 ; Price Per Sq. Ft. $52.92
• Palmer = 1
• Republic = 4

*Data maintained by the Upper Peninsula Association of REALTORs or it's MLS is in no way responsible for it's accuracy and may not reflect all real estate activity in the market.