Tammy Poore - Realtor(R)
My main goal as your Realtor (R) is to keep you informed and to become one of the most valuable resources you will have. I pride myself on staying in touch, and knowledgable. To return to my main website www.tammypoore.com or
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On this page you will find the following articles: Scroll down for the article of interest.
Sellers Struggle to Compete with Foreclosures - The King
Top Ten Steps to Be A Successful Seller
When the Government Takes Private Property for Public Use - Eminent Domain
Sellers Struggle to Compete with Foreclosures - The KingBy Josh Brodesky
"Though based around the real estate market in Arizona, much is similar to our conditions and there is sound advise within this article. - Tammy"
RISMEDIA, July 7, 2009-(MCT)
-Looking to move up, Cheryl and Jeff Wortzel put their Midtown, Tucson home on the market in December. With two young boys sharing a room, the Wortzels want more space than their two-bedroom home in the Blenman-Elm Neighborhood can offer.
Six months, two price cuts and a handful of low-ball offers later, they are still trying to sell.
“We are not in a rush, and we have a bottom line,” Jeff Wortzel said. “We can’t go to the next house until this one sells, and if we want to move, we have to be patient.”
The stasis the Wortzels find themselves in-hoping to buy another home, but needing to sell their own home first-pretty much sums up Tucson’s resale housing market: Foreclosures are king, and traditional sellers struggle to compete.
“This is one of the roughest resale markets that I’ve ever seen,” said prominent “green” builder John Wesley Miller, who is trying to divest a four-bedroom, three-bath Foothills home that he took in trade about a year ago as part of a sale.
Miller first listed the home at $450,000, which was right at the appraised value at the time. A year later, he’s down to $375,000, the new appraised value.
“It’s a two-story, but at $375,000 for a Foothills house it’s a cheap price,” he said. “So I am encouraged that we are going to be able to sell it probably in the next month or so.”
Listing brokers say the key to selling a home in this down market is to be realistic about pricing, something many homeowners, who saw their values surge during the housing boom, just aren’t willing to do.
In many cases, sellers might be better off pricing low, which could potentially lead to multiple prospective buyers bidding on a property, the brokers say.
“To bring a home on the market and just chip away at the price, what happens is buyers start saying, ‘Gosh, there is something wrong with that house,’ ” said Rosey Koberlein, CEO of Long Realty Co. “The danger in today’s market is if you are overpriced, even in the smallest percentage, what you are doing is helping your neighbor sell their house.”
Competing with foreclosures
The Wortzels knew what they were getting into when they decided to put their home, near East Elm Street and North Country Club, on the market.
They knew about the glut of foreclosures and declining values. But having bought their home in 2004 for $215,000, they had some equity to work with and saw an opportunity to move into a bigger home.
Over the span of about 40 showings, they’ve dropped the price from $285,000 to $255,000. That still puts the home at $177 a square foot, but in their view they have pretty much hit a bottom price point that would allow them to move up. The listing price, their brokers said, is below the comps.
“Every proceed from this house is a down payment,” Jeff Wortzel said, sitting at their dinner table at sunset recently.
The hardest part about waiting for a buyer?
Keeping the home clean day after day with two small boys.
“We have a system,” Cheryl Wortzel said. “Everything has its place, and the night before we put it all away.”
With so many foreclosures on the market, the low-ball offer is in vogue as potential buyers try to leverage the market for a better price.
“There are a lot of bottom feeders in town trying to steal property,” said Miller, the builder.
But neither Miller nor the Wortzels are desperate to sell. The Wortzels like their home, its prime location and updated kitchen and large backyard.
Miller has plenty of equity in the home, and is in no rush to sell.
It’s easy, though, to understand why buyers would try to leverage the market to score an exceptionally low price-even if the home is already priced at market rate.
Foreclosures have been making up about a third of all resales in the Tucson market, and the median sales price for a bank-owned home in May was $122,000, said housing analyst John L. Strobeck, of Bright Future Business Consultants.
Meanwhile, the median sales price for traditional resales-without foreclosures-in May was $180,000.
And the foreclosures keep coming. This year there were 2,000 more foreclosures in PimaCounty through May, and more than 5,000 properties in default, putting them in imminent danger of foreclosure, numbers from the Pima County Recorder’s Office show.
Signs of stability
Although the foreclosure wave has been strong and steady, Tucson’s housing market has seen some positive, stabilizing signs over the past few months.
The median home price has been steady, hovering around $165,000 since December, according to the Tucson Association of Realtors Multiple Listing Service. Back in May, it jumped to $170,000.
Meanwhile, the number of homes for sale has continued to fall, dropping to 6,506 in May.
But much of the market activity has been happening at the lower price points where, no surprise here, many foreclosures are selling.
What this means is while there are signs the housing market might be forming a bottom, it could be some time until “move-up” buyers start buying more expensive homes.
“There are probably two parts to this,” said University of Arizona economist Marshall Vest. “The first is I can see light at the end of the tunnel. That is housing prices are getting to level off, and they are no longer in free-fall. The second part is those very expensive houses, that market is pretty much moribund still.”
Aggressive pricing
Tell Bill Castaneda about moribund.
His Northwest Side home has been on the market for 18 months. During that time, he’s dropped the price from $339,000 to $250,000, moving with the market.
“We are at that point where that’s about it,” he said. “We’ve hit that rock-bottom price.”
Castaneda put his four-bedroom, three-bath home up for sale after he and his ex-wife separated. He knew about the challenges in the market, watching as foreclosures would pop up in his neighborhood and then sell at fire-sale prices.
“There was a lot there, but most of them have been picked up and purchased,” he said.
The house is gaining some interest since the price has dropped to $250,000, or $109 a square foot, but because of the length of time on the market, Castaneda is probably battling not just declining prices but also questions about why the house hasn’t sold.
“Buyers are aware of the market, and they expect to get great deals,” said Rob Lamb, a listing broker with Long Realty who has the highest number of listings in the metro area.
The only exceptions to aggressive pricing, Lamb said, are when homes have “excellent location, or great condition.”
On those homes, “you can still get top dollar,” he said.
Finally, holding out for a high price may in the long run cost sellers who are looking to move up, Lamb said. “If you did sell for what in your mind was a loss, and you were able to buy a better house, you are going to appreciate more equity in that,” he said.
Castaneda and the Wortzels seem to think they’ve hit their own bottom point for pricing. Time will tell, though, if the market agrees.
Suffering Sellers
It’s a tough market in which to sell a home, but sometimes sellers make it harder on themselves. Here are some seller tips, courtesy of Rosey Koberlein, CEO of Long Realty:
–Don’t assume if you price high, you can always come down once an offer is made. Price too high, and offers won’t get made. Prospective buyers will move on thinking the seller is unreasonable. “Buyers want to see something competitively priced to give them a reason to make an offer,” Koberlein says.
–The most important time for a home is its first two to three weeks up for sale. That’s when the most potential buyer activity will take place on a listing. “That’s why it really needs to be competitively priced. We have homes right now where we are experiencing multiple offers,” she says. Price the home too high and it will sit on the market, and prospective buyers will assume something is wrong with the property.
–Have your listing agent show you comparable homes on the market. That way, sellers know what they are competing against and can price the property more accurately.
Financing
Prospective buyers shouldn’t be surprised by tighter financing.
“About the only mortgage money out there is for conforming loans,” says University of Arizona economist Marshall Vest. “There isn’t any money available for jumbos (loans of $417,000 and up).”
Milton Dellossier, of Wells Fargo Home Mortgage, says there is money to lend to prospective buyers. He said buyers can either pursue FHA loans, which require 3.5 percent down, but in most cases they should expect to put 20 percent down.
“Essentially we are going back to the way we did things a few years back,” he said.
Prospective buyers will have to show proof of income, make a down payment, get a full appraisal and go through a credit check.
The bottom line: Because Arizona is a declining market, some kind of down payment will always be required.
Did You Know
Home sellers have a patron saint.
For generations, home sellers have buried 4-inch statues of St. Joseph upside down in their front yards, next to their for-sale signs, hoping he’ll help. A prayer must be said, too.
The statue costs about $6 and comes with a prayer card and instructions. Susan Dowler, owner of Sonoran Saints, says sales are way up in these tough times. She buys 400 saints at a time, and usually sells out in about six weeks.
“I would say people are trying more. They only need one, but some people are buying four or five to try to sell their house,” Dowler said.
Copyright ©2009, The Arizona Daily Star, Tucson
Distributed by McClatchy-Tribune Information Services.
RISMEDIA, July 7, 2009-(MCT)
-Looking to move up, Cheryl and Jeff Wortzel put their Midtown, Tucson home on the market in December. With two young boys sharing a room, the Wortzels want more space than their two-bedroom home in the Blenman-Elm Neighborhood can offer.
Six months, two price cuts and a handful of low-ball offers later, they are still trying to sell.
“We are not in a rush, and we have a bottom line,” Jeff Wortzel said. “We can’t go to the next house until this one sells, and if we want to move, we have to be patient.”
The stasis the Wortzels find themselves in-hoping to buy another home, but needing to sell their own home first-pretty much sums up Tucson’s resale housing market: Foreclosures are king, and traditional sellers struggle to compete.
“This is one of the roughest resale markets that I’ve ever seen,” said prominent “green” builder John Wesley Miller, who is trying to divest a four-bedroom, three-bath Foothills home that he took in trade about a year ago as part of a sale.
Miller first listed the home at $450,000, which was right at the appraised value at the time. A year later, he’s down to $375,000, the new appraised value.
“It’s a two-story, but at $375,000 for a Foothills house it’s a cheap price,” he said. “So I am encouraged that we are going to be able to sell it probably in the next month or so.”
Listing brokers say the key to selling a home in this down market is to be realistic about pricing, something many homeowners, who saw their values surge during the housing boom, just aren’t willing to do.
In many cases, sellers might be better off pricing low, which could potentially lead to multiple prospective buyers bidding on a property, the brokers say.
“To bring a home on the market and just chip away at the price, what happens is buyers start saying, ‘Gosh, there is something wrong with that house,’ ” said Rosey Koberlein, CEO of Long Realty Co. “The danger in today’s market is if you are overpriced, even in the smallest percentage, what you are doing is helping your neighbor sell their house.”
Competing with foreclosures
The Wortzels knew what they were getting into when they decided to put their home, near East Elm Street and North Country Club, on the market.
They knew about the glut of foreclosures and declining values. But having bought their home in 2004 for $215,000, they had some equity to work with and saw an opportunity to move into a bigger home.
Over the span of about 40 showings, they’ve dropped the price from $285,000 to $255,000. That still puts the home at $177 a square foot, but in their view they have pretty much hit a bottom price point that would allow them to move up. The listing price, their brokers said, is below the comps.
“Every proceed from this house is a down payment,” Jeff Wortzel said, sitting at their dinner table at sunset recently.
The hardest part about waiting for a buyer?
Keeping the home clean day after day with two small boys.
“We have a system,” Cheryl Wortzel said. “Everything has its place, and the night before we put it all away.”
With so many foreclosures on the market, the low-ball offer is in vogue as potential buyers try to leverage the market for a better price.
“There are a lot of bottom feeders in town trying to steal property,” said Miller, the builder.
But neither Miller nor the Wortzels are desperate to sell. The Wortzels like their home, its prime location and updated kitchen and large backyard.
Miller has plenty of equity in the home, and is in no rush to sell.
It’s easy, though, to understand why buyers would try to leverage the market to score an exceptionally low price-even if the home is already priced at market rate.
Foreclosures have been making up about a third of all resales in the Tucson market, and the median sales price for a bank-owned home in May was $122,000, said housing analyst John L. Strobeck, of Bright Future Business Consultants.
Meanwhile, the median sales price for traditional resales-without foreclosures-in May was $180,000.
And the foreclosures keep coming. This year there were 2,000 more foreclosures in PimaCounty through May, and more than 5,000 properties in default, putting them in imminent danger of foreclosure, numbers from the Pima County Recorder’s Office show.
Signs of stability
Although the foreclosure wave has been strong and steady, Tucson’s housing market has seen some positive, stabilizing signs over the past few months.
The median home price has been steady, hovering around $165,000 since December, according to the Tucson Association of Realtors Multiple Listing Service. Back in May, it jumped to $170,000.
Meanwhile, the number of homes for sale has continued to fall, dropping to 6,506 in May.
But much of the market activity has been happening at the lower price points where, no surprise here, many foreclosures are selling.
What this means is while there are signs the housing market might be forming a bottom, it could be some time until “move-up” buyers start buying more expensive homes.
“There are probably two parts to this,” said University of Arizona economist Marshall Vest. “The first is I can see light at the end of the tunnel. That is housing prices are getting to level off, and they are no longer in free-fall. The second part is those very expensive houses, that market is pretty much moribund still.”
Aggressive pricing
Tell Bill Castaneda about moribund.
His Northwest Side home has been on the market for 18 months. During that time, he’s dropped the price from $339,000 to $250,000, moving with the market.
“We are at that point where that’s about it,” he said. “We’ve hit that rock-bottom price.”
Castaneda put his four-bedroom, three-bath home up for sale after he and his ex-wife separated. He knew about the challenges in the market, watching as foreclosures would pop up in his neighborhood and then sell at fire-sale prices.
“There was a lot there, but most of them have been picked up and purchased,” he said.
The house is gaining some interest since the price has dropped to $250,000, or $109 a square foot, but because of the length of time on the market, Castaneda is probably battling not just declining prices but also questions about why the house hasn’t sold.
“Buyers are aware of the market, and they expect to get great deals,” said Rob Lamb, a listing broker with Long Realty who has the highest number of listings in the metro area.
The only exceptions to aggressive pricing, Lamb said, are when homes have “excellent location, or great condition.”
On those homes, “you can still get top dollar,” he said.
Finally, holding out for a high price may in the long run cost sellers who are looking to move up, Lamb said. “If you did sell for what in your mind was a loss, and you were able to buy a better house, you are going to appreciate more equity in that,” he said.
Castaneda and the Wortzels seem to think they’ve hit their own bottom point for pricing. Time will tell, though, if the market agrees.
Suffering Sellers
It’s a tough market in which to sell a home, but sometimes sellers make it harder on themselves. Here are some seller tips, courtesy of Rosey Koberlein, CEO of Long Realty:
–Don’t assume if you price high, you can always come down once an offer is made. Price too high, and offers won’t get made. Prospective buyers will move on thinking the seller is unreasonable. “Buyers want to see something competitively priced to give them a reason to make an offer,” Koberlein says.
–The most important time for a home is its first two to three weeks up for sale. That’s when the most potential buyer activity will take place on a listing. “That’s why it really needs to be competitively priced. We have homes right now where we are experiencing multiple offers,” she says. Price the home too high and it will sit on the market, and prospective buyers will assume something is wrong with the property.
–Have your listing agent show you comparable homes on the market. That way, sellers know what they are competing against and can price the property more accurately.
Financing
Prospective buyers shouldn’t be surprised by tighter financing.
“About the only mortgage money out there is for conforming loans,” says University of Arizona economist Marshall Vest. “There isn’t any money available for jumbos (loans of $417,000 and up).”
Milton Dellossier, of Wells Fargo Home Mortgage, says there is money to lend to prospective buyers. He said buyers can either pursue FHA loans, which require 3.5 percent down, but in most cases they should expect to put 20 percent down.
“Essentially we are going back to the way we did things a few years back,” he said.
Prospective buyers will have to show proof of income, make a down payment, get a full appraisal and go through a credit check.
The bottom line: Because Arizona is a declining market, some kind of down payment will always be required.
Did You Know
Home sellers have a patron saint.
For generations, home sellers have buried 4-inch statues of St. Joseph upside down in their front yards, next to their for-sale signs, hoping he’ll help. A prayer must be said, too.
The statue costs about $6 and comes with a prayer card and instructions. Susan Dowler, owner of Sonoran Saints, says sales are way up in these tough times. She buys 400 saints at a time, and usually sells out in about six weeks.
“I would say people are trying more. They only need one, but some people are buying four or five to try to sell their house,” Dowler said.
Copyright ©2009, The Arizona Daily Star, Tucson
Distributed by McClatchy-Tribune Information Services.
Ready... Set... Sell
Top Ten Tips to be a Successful Seller
Published on Tuesday, February 3, 2009, by Paul Pastore
1. Be committed to selling. In a buyer's market with inflated inventories, short sales, and repos, there is no place for sellers who want to 'test the waters'. Don't even think "If I get my price". You won't. Money is only a secondary motivator to the serious seller.
2. Make sure the price is right. Try triangulation. Ask a few agents for their opinion. Glance at www.zillow.com. Consider a formal appraisal. Focus on both current competition and current comps. Sellers should realize they seldom see their property objectively or know the other properties the buyers have seen.
3. Staging is a necessity. Clutter eats equity. Hire a professional stager or listen very carefully to your agent's suggestions. View a staging DVD. Buyers 'horriblize' defects. A faded front door suggests deferred maintenance. A stucco crack may infer expansive soil.
4. Consider a keysafe. The new lock boxes are electronic and enable the listing agent to see who is showing the property. Homes with easy access get more showings.
5. Install a for sale sign. If you don't want the neighbors to know you are selling, reread #1 above. The people in your area will know with or without the sign your property is for sale. They might even have a friend or relative who wants to be their new neighbor.
6. Absorb all feedback. If one buyer says something, others are thinking the same thing. If several similar comments are made, do something about the problem. Put your ego in storage with the excess furniture.
7. Flexibility is fundamental. No showings usually means the price is too high. No offers usually means the price is too high. Be proactive especially if the market is flat or declining. Regularly reduce the price until an acceptable offer is received.
8. Accentuate the positives. Selling, buying, and moving are stressful events. Tell your agent you appreciate their efforts. Ask them how you can help get the house sold. Ask them what they would do if you were their relative, or it was their home. Ask this question frequently.
9. Time is of the essence. This means sooner is better than later. Do not underestimate the first buyer. They may be the best buyer. They may be the only buyer for a long time. A lower asking price may net a seller more money in the long run.
10. Patience is a virtue. Ask your agent what the average days on the market is in your area. The only way to get somewhere faster is to step on the gas if you are in a car. Or, reduce the price if selling a house.
Note from Tammy: Zillow is not an accurate portrayal of your home's value, but should give a general "ball park" price. A CMA or formal appraisal will be more beneficial in determining where you should price your house in today's market.
When the Government Takes Private Property for Public Use - Eminent Domain
How Imminent Is Eminent Domain?
By Marylyn Schwartz, CSP Print Article
RISMEDIA, October 21, 2009—Robert C. Bird, Assistant Professor of Business Law, University of Connecticut, is an expert on issues related to the principle of eminent domain. Simply put, eminent domain is the power of a government entity to be given authorization by the legislature or governor to take private property for public use without the owner’s consent and with due compensation to the owner(s). This ability for a government entity to seize property is guaranteed by the U.S. Constitution.
The very idea of one’s property being seized is anathema to the American psyche and is not taken lightly by either the government or the citizen(s) involved in a possible seizure. In this exclusive interview, Bird discusses the truth about eminent domain. Is it common, uncommon, easy, difficult, etc.?
MBS: Robert, what, if anything, has changed relative to eminent domain regulations since the Kelo case (Kelo v. City of New London), the last highly-publicized Supreme Court case?
RB: The Kelo case, while widely publicized, did not substantively change the law of eminent domain. Perhaps the best service that Kelo provided was that it informed the public of the broad range of an already existing power. After the Kelo case, legislation was introduced in a variety of states and at the federal level to curb the reach of municipalities arising from eminent domain. While some states did pass legislation ‘pruning’ the power of government entities to seize private land, many bills fizzled and never became law. The result today is that, while some states have adopted checks to prevent the worst excesses in eminent domain, Kelo is still stated law at the federal level and in most states.
MBS: What do agents and brokers need to know to perform their duties effectively if and when they are involved in a possible eminent domain case, keeping in mind that finding the proper counsel is crucial?
RB: Agents and brokers need to know that eminent domain is a constant presence in real estate practice. Government entities have great discretion in choosing what properties may be seized via eminent domain and what can be done with those properties once they fall under government control. That being said, eminent domain is the exception rather than the norm for government practice. Agents and brokers should be aware, however, that certain kinds of properties are vulnerable to eminent domain. Such properties include those affected by neighborhood blight, in the logical path of natural extensions of transportation corridors or locations that municipalities have been examining as targets for economic redevelopment. Even with these vulnerabilities, agents and brokers can be assured that the likelihood of a given parcel being subject to eminent domain action is rare.
MBS: What can/should an agent/broker advise a client/prospect to do who may be involved in an eminent domain issue?
RB: The most important advice to the client/prospect is to retain counsel immediately. Clients/prospects would be wise to obtain an attorney who specializes or has had extensive experience with eminent domain cases and is familiar with its procedural and substantive laws. Clients/prospects should also be made aware that they can challenge not only the taking itself but the appropriate price of the property to be paid to the landowner if it is seized. People should not go it alone when facing the threat of eminent domain. The expense of hiring an attorney will be well worth it in most cases.
MBS: When a person is faced with challenging an eminent domain seizure, what are the chances that they will win and not have the property seized?
RB: The truth is that if the municipality wants the property, they will most likely get it every time. However, most appeals brought by owners are based not on contesting the seizure, but rather on the so-called fair market value estimate being tendered. The first appeal would most often be to the local zoning board. If there is no acceptable resolution, then the case could be brought to the state Supreme Court or U.S. Supreme Court as happened in the Kelo case. The issue of fair market value is a tough one in that there are many variables used in determining the dollar offer: construction replacement costs; market sales approach; future use considerations; etc. People are often afraid to contest the estimate of value and take the first offer tendered. They fear that generating a court case would weaken their position, and instead of gaining greater remuneration, they will be forced to settle for less. Having the right legal advice provides the owner with the advantage of having someone who knows the right questions to ask the first time.
MBS: While the incidence of eminent domain may be rare, when it does manifest itself, it inevitably becomes a front-page issue in the community affected.
Marylyn B. Schwartz, CSP, is an expert in real estate and corporate sales training/management and team development. She is president of Teamweavers and a trainer for Leader’s Choice. To contact her, e-mail teamweaver@aol.com.
By Marylyn Schwartz, CSP Print Article
RISMEDIA, October 21, 2009—Robert C. Bird, Assistant Professor of Business Law, University of Connecticut, is an expert on issues related to the principle of eminent domain. Simply put, eminent domain is the power of a government entity to be given authorization by the legislature or governor to take private property for public use without the owner’s consent and with due compensation to the owner(s). This ability for a government entity to seize property is guaranteed by the U.S. Constitution.
The very idea of one’s property being seized is anathema to the American psyche and is not taken lightly by either the government or the citizen(s) involved in a possible seizure. In this exclusive interview, Bird discusses the truth about eminent domain. Is it common, uncommon, easy, difficult, etc.?
MBS: Robert, what, if anything, has changed relative to eminent domain regulations since the Kelo case (Kelo v. City of New London), the last highly-publicized Supreme Court case?
RB: The Kelo case, while widely publicized, did not substantively change the law of eminent domain. Perhaps the best service that Kelo provided was that it informed the public of the broad range of an already existing power. After the Kelo case, legislation was introduced in a variety of states and at the federal level to curb the reach of municipalities arising from eminent domain. While some states did pass legislation ‘pruning’ the power of government entities to seize private land, many bills fizzled and never became law. The result today is that, while some states have adopted checks to prevent the worst excesses in eminent domain, Kelo is still stated law at the federal level and in most states.
MBS: What do agents and brokers need to know to perform their duties effectively if and when they are involved in a possible eminent domain case, keeping in mind that finding the proper counsel is crucial?
RB: Agents and brokers need to know that eminent domain is a constant presence in real estate practice. Government entities have great discretion in choosing what properties may be seized via eminent domain and what can be done with those properties once they fall under government control. That being said, eminent domain is the exception rather than the norm for government practice. Agents and brokers should be aware, however, that certain kinds of properties are vulnerable to eminent domain. Such properties include those affected by neighborhood blight, in the logical path of natural extensions of transportation corridors or locations that municipalities have been examining as targets for economic redevelopment. Even with these vulnerabilities, agents and brokers can be assured that the likelihood of a given parcel being subject to eminent domain action is rare.
MBS: What can/should an agent/broker advise a client/prospect to do who may be involved in an eminent domain issue?
RB: The most important advice to the client/prospect is to retain counsel immediately. Clients/prospects would be wise to obtain an attorney who specializes or has had extensive experience with eminent domain cases and is familiar with its procedural and substantive laws. Clients/prospects should also be made aware that they can challenge not only the taking itself but the appropriate price of the property to be paid to the landowner if it is seized. People should not go it alone when facing the threat of eminent domain. The expense of hiring an attorney will be well worth it in most cases.
MBS: When a person is faced with challenging an eminent domain seizure, what are the chances that they will win and not have the property seized?
RB: The truth is that if the municipality wants the property, they will most likely get it every time. However, most appeals brought by owners are based not on contesting the seizure, but rather on the so-called fair market value estimate being tendered. The first appeal would most often be to the local zoning board. If there is no acceptable resolution, then the case could be brought to the state Supreme Court or U.S. Supreme Court as happened in the Kelo case. The issue of fair market value is a tough one in that there are many variables used in determining the dollar offer: construction replacement costs; market sales approach; future use considerations; etc. People are often afraid to contest the estimate of value and take the first offer tendered. They fear that generating a court case would weaken their position, and instead of gaining greater remuneration, they will be forced to settle for less. Having the right legal advice provides the owner with the advantage of having someone who knows the right questions to ask the first time.
MBS: While the incidence of eminent domain may be rare, when it does manifest itself, it inevitably becomes a front-page issue in the community affected.
Marylyn B. Schwartz, CSP, is an expert in real estate and corporate sales training/management and team development. She is president of Teamweavers and a trainer for Leader’s Choice. To contact her, e-mail teamweaver@aol.com.
