Real estate news for Tuesday has some interesting items covering Flood Insurance, real estate taxes surprising many homeowners in Florida, and advice on negotiations if you are thinking about doing negotiations on your own.
REAL ESTATE TAXES – For many homeowners in Florida – but not all – real estate taxes went down a little bit this year. But the benefits can vary due to many factors including local market conditions, state and county tax officials say.
Part of the reason homeowners in the Naples area are not seeing real estate taxes drop is largely due to market conditions during 2006. Why does 2006 market conditions influence 2007 real estate taxes? Real estate taxes are a product of assessed value and tax rate. Prices may have been increasing for some Naples neighborhoods during 2006, therefore, the tax rate reduction could be offset by the assessed value increase.
FLOOD INSURANCE – Florida has 285,937 acres included in the Coastal Barrier Resources Act – more than any other state – but homeowners living there are ineligible for any federal subsidies, including national flood insurance.
You should check with your insurance agent if you are affected by the Coastal Barrier Resources Act. Flood insurance covers ground water as you homeowners insurance covers wind damage.
SLOW AND STEADY WINS THE PLACE – Most people – even those who think they have great negotiating skills – accept a deal too quickly, according to a study. “Even experienced negotiators are not immune,” says study co-author George Wu, a professor at the University of Chicago’s Graduate School of Business. “People almost always underestimate” how far they can get the other side to go. Rick Larrick, associate professor of management at Duke University’s Fuqua School of Business and another co-author of the study, offers this advice for those who want to be a better real estate negotiator:
- Weigh your alternatives. “If you’re buying a house, you should know if there is another one out there that you would be happy to buy if you couldn’t get this one at a certain price,” says Larrick. “If there is, you can make the other side sweat.”
- Know the value. “Look at everything in that (home’s price) range and know what else buyers interested in your home might be seeing,” advises Fran Vernon, an associate with Dilback Realtors in La Canada, Calif.
- Have patience. An unhurried buyer or a seller can rise above other buyers or sellers in the same price range.
- Learn from your deals. Just because you walked away feeling like a winner doesn’t mean you were, Larrick says. Pay attention to subsequent similar sales, so the next time you can do better.