Recent Real Estate News in Nevada
Real Property Valuation: How is This Determined
I thought it would be interesting to explain to home owners how ones property tax is determined by the Washoe County Assessor:
When is the next tax year? Each tax year runs from July 1 to June 30.
What is taxable value? Taxable value is the full cash value (market value) of the land and the current replacement cost of buildings, etc. less statutory depreciation.
What is included in Buildings, etc.? The legal definition of buildings includes all structures affixed to the land. This includes items such as wells, septic systems, corrals, pavings, mobile home utility hook-ups, etc
What is assessed value? Per NRS 361.225, the assessed value is 35% of taxable value.
Is there any type of assistance available for individual taxpayers? Exemptions are available to bona fide Nevada residents meeting certain criteria such as: surviving Spouse, Veterans, disabled Veterans and Blind people. For more information call
775-328-2277
Why did my value increase by more than 3% or 5% ? Nevada Revised Statutes 361.471 through 361.4735 provides for an abatement (cap) on taxes NOT on assessed value . To review “tax cap” statues please contact our office at 775-328-2277 or visit our website at www.washoecounty.us/assessor/cama
What is listed as NEW TO ROLL on this notice? Any new value due to new construction or a change in actual or authorized use.
What if I disagree with the taxable value? If you have any questions, please contact this office as soon as possible,preferably within 10 days, at 775-328-2233. If they are unable to resolve matters to your satisfaction, you may appeal to the County Board of Equalization. Such appeals must be filed at the Assessor’s Office by January 15, 2013.
What if I disagree with New To Roll, Remainder Values or the partial abatement(“Tax Cap”) statues?
You may petition (appeal to) the Assessor or review these abatement decisions pursuant to Nevada Revised Statue 361.4734. Please call our office at 775-328-2233 or visit our website at www.washoecounty.us/assessor/abateappeal for additional information and the filing deadline.
In the near future the secured tax roll list will be available at Washoe County Libraries, at the Assessors office and on their website: www.washoecounty.us/assessor before January 1st 2013
Home Prices Rise 10 Percent in Reno and Surrounding Areas
Low inventories and high demand have driven much of the price increases and sales in the market recently. As a result home prices in the Reno-Sparks rose 10 percent in September, compared with a year ago, according the Core-Logic’s Home Price Index report released yesterday. Not including sales of distressed properties, prices for existing homes rose 11.9 percent last month, compared with September 2011. Nevada saw one of the highest increases, making it one of the highest home appreciation rates in the US. We are still more than 50 percent below its peak prices before the real estate market collapsed in Nevada.
News on home prices confirms other good news about housing. Single family housing starts are 43% ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and consumer mortgage default rates are reaching new lows. Further consumer confidence continues to rise. Even as we end the seasonally strong home buying period, the statistics are positive.
In the past three weeks, four homes have gone into escrow in Montreux with an average sale’s price of $1,532,250, or $321.50 per sq ft. Significantly higher per sq foot than 5 months ago. With reduced inventories, improved buyer demand and home prices over the past five months makes us optimistic for continued recovery in the housing market.
SERVER TECHNOLOGY…RENO BASED COMPANY
Who do the biggest names in servers, search, healthcare, cloud and financial services trust to provide power management solutions. Server Technology, www.servertech.com. Now based in Reno, Nevada to take advantage of the NO STATE TAX and more.
Since 1984 they have been the first in power innovation. From the first power and network control products ever developed, to the first power on/off and reboot modes, to the first remote power management products, the the first “fail-safe” product, to the first rack-mountable CDU, to the first IP-addressable CDU, Server Technology has led the industry in innovation and cutting-edge technology. It is the largest commercially successful patent library in power management.
For over 25 years, Server Technology has been providing the world’s biggest companies with trusted power management solutions. Solutions to improve uptime and energy efficiency while reducing carbon footprint and operating costs. Solutions that give you the critical information you need to run your data center better. Intelligent cabinet-level power distribution units (CDUs) that set the industry -standard for quality and functionality. Power monitoring, measurement and management solutions that give you the information needed to run your operation.
They are proud to note that 97% of there customers buy from them again and again and again. This show their quality, performance and reliability of their products. The speed in which they deliver them to you, how they take care of their customers, take care of service, product knowledge and technical support. This is one of the reasons why the top Fortune 500 companies order from them and trust them to deliver daily.
90% of their orders ship in 5 days, from a fully stocked warehouse in Reno, Nevada. From concept to build in 60-90 days on new, custom products. They are so committed to quality that they have an in-house state-of-the-art Power Test Lab where their products are validated and tested for long term reliability. The lab has complete testing facilities for thermal, shock and vibration, and emissions along with testing capabilities to ensure compliance with applicable safety standards. Their engineers are available to provide the help you need for all their products and services, and they offer 24×7 support. They are knowledgeable in both domestic and international data center support, with the on-site data center experience that you expect.
Server Technology has just welcomed their newest member Marc Marazzi VP of international sales. Marc Marazzi recently said,
“Server Technology has been so successful in the US and generally speaking the US adopts technology faster than international,” Marazzi said. “Server Technology has seen the way that international business and international requirements are starting to trend, and wants a bigger piece of the action. They believe they can absolutely get that bigger piece of the action, but the only way to do that when you are in Reno is to have someone driving that for you in Europe. Server Technology currently has sales offices in England, Germany and Singapore. Based out of London, Marazzi will help expand Server Technology’s international presence, particularly since the data center power distribution company has already established such a strong base in the US.
Just to mention a few of their customers: Cisco, Google, IBM, Facebook, Yahoo, Microsoft, Dell, Amazon.com and many more.
Reno should be proud that a company of this standard and size has chosen our biggest little city to be their headquarters.
Nevada: A Tax Friendly State
There are many individuals and businesses who are motivated to relocate to Nevada by the fact that Nevada does not impose a state income tax.
The benefits to an individuals who live in Nevada and become a Nevada resident will usually escape state taxation of their income, except for income arising from sources within another state. A corporation organized and domiciled in Nevada could significantly reduce its state tax burden. States generally tax corporate business income based on the corporation’s level of activity within and outside that State. So when you shift part of the corporation’s business to Nevada it will reduce the state tax. This will also eliminate state taxation of corporation’s non-business income if the corporation is organized and domiciled in Nevada.
Trusts with Nevada fiduciaries can gain a significant tax advantage as well. With a Nevada fiduciary, non- California source income, distributed to non-California beneficiaries or retained and taxable in the trust, will escape California taxation.
The single, most important prerequisite for a taxpayer to take advantage of Nevada’s “tax hospitality” is domiciling one’s self in the state. It must be his primary home and his principle place of residency. Once has to pass the “close connection test”, identifying Nevada as the state which they have the closet ties during the taxable year.
Various factors are considered in determining whether a taxpayer has close ties with a particular state. Here are a few to consider.Where you are physically present. Where you have sources of income. Where you are registered to vote. Where you own a home. Where you claim the homeowner’s exemption. Where you driver’s license is issued. Where your closest business contacts are, i.e. Attorneys, accountants, banks etc. Where your closest social contacts are, including clubs. Where your vehicles are registered. re Where your minor children attend school, and whether you paid resident or non-resident tuition. Which state has jurisdiction in the administration of your will and trusts. Where you obtained a homestead exemption. Where you maintain a safety deposit box. Where you filed an affidavit of domicile. Where you own a cemetery plot.
While no factor by itself can positively determine residency, registering to vote or claiming the homeowner’s exemption in California, for example, has been found to make the taxpayer a California resident, regardless of the other factors. For more information regarding the above, one should always contact a specialist in Nevada Tax laws.
BE SMART AND HOMESTEAD YOUR HOME
If you own a home it only make sense to protect your equity from others and it is amazing how few people actually take advantage of it. Most people I speak to don’t even know it exists. This is usually your largest investment and by simply completing a “Declaration of Homestead” form and recording it with the county recorder in the county where the home is located. The recorder charges a fee of usually around $14. In Washoe County, the recorder’s address is: Washoe County Recorder, 1009 East 9 th street, Reno, Nevada 89512
Nevada law permits you to protect up to $550,000 of equity in your home. Nevada is one of the most generous homestead exemptions in the country. If you aren’t protected, your home is in danger of being sold should collectors choose to. The Homestead Law does not protect you against debts secured by a mortgage or deed of trust, payment of taxes, IRS lien, mechanic’s lien, child support or alimony payments. Protecting your home with the homestead exemption will protect you from credit card judgments, accidents and personal loans. You can protect only your primary residence — the property in which you live the majority of the time.You can record your homestead at almost any time, even if you have already lost a lawsuit or had a judgment entered against you.
If you have already filed a Declaration of Homestead on your property remember that you will need to prepare and record a new one if you: Sell your home and buy another one, move your mobile home from one lot space to another, marry, divorce or become widowed, get a new loan.
It is always recommend that homeowner’s seek competent legal counsel regarding the ramifications of filing a Declaration of Homestead. Below is the Declaration of Homestead form for your to use.
Nevada Drops to 3rd Place in Foreclosure Rates
RealtyTrac announced today that Nevada has now dropped to 3rd place in the foreclosure rate. This would include foreclosure related filings such as, Bank repossessions, defaults and scheduled auctions. Sadly, in May one in every 313 homes had a foreclosure related filing. In total Nevada had 3,755 filings down from 11,039. Washoe County had 421, down from 1,152 and Clark County 3,122, down from 9,203.
Assembly Bill 284 which was passed in October 2011 might be responsible for this as it required stricter documentation during the forcelosure process and has slowed the number of distressed homes released on the market. Unfortunately Nevada is more than likely going to see more short sales and auctions as lenders learn how to navigate through a Assembly Bill 284. RealtyTrac CEO Brandon Moore said, “U.S. foreclosure activity has now decreased on a year-over-basis for 20 straight months including May, but the jump in May foreclosure starts shows that it’s going to be a bumpy ride down to the bottom of this foreclosure cycle.”
If you are considering doing a short sale on your home please remember that it is not always necessary to use an Nevada Attorney,when short sales are free. Consider the following; will the attorney guarantee their services and pay you a full refund if they fail to perform? If you meet with an attorney who won’t agree to refund your money should they fail to get your short sale approved, you should move on. Keep your hard earned money. Why pay an attorney for a service that should not cost you a dime. Many banks are now waiving their right to pursue deficiency, and some banks are even offering “cash back” to homeowners as an incentive to short sell. Remember there are many short sale agents that are specialists in this field.
RENO HOME PRICES STABILIZING
In February prices in homes rose showing a slow recovery in the area’s real estate market. The median sales price in the Reno market went up by 2 percent compared to the same time period in 2011. With low inventory in the market the prices of homes for sale have increased.
509 homes sold last month which is a 17% increase from last year. This is what we need for a sustained recovery; monthly increases coupled with improving annual rates of change. Once we see this on a broader level we will be able to say the market has turned around.
The housing situation in the Reno area, while certainly not booming, is seeing some stability and possibly some gains. Inventories of unsold homes are declining, and the average time a house spends on the market is shrinking.
March Home sales up in Washoe
Good news! It has been reported by the Reno/Sparks Association of Realtors, that March sales of existing single family homes in Washoe have increased by 3% from the same period last year. Not only that, it is also 13% up from the previous month and the sales number fell short of setting a record for the month and is just short of sales of March 2005 which was part of the real estate boom in our area. Foreclosure inventory have decrease because of stricter foreclosing laws. For theses reasons, non-distressed sellers have an opportunity to now sell their homes.
We might even see an increase in prices in home values if fewer distressed properties come on the market. With banks having to deal with stricter foreclosure filing requirements by streamlining the short-sale process. Some banks have new systems that can reduce the time of a short sale from a few months to a few weeks. This is all good news however until the job market improves and our unemployment decrease in Nevada will we really be able to say we are once again in a good market.
Dickson Realty update, Adam Stern and Lon Welsh
On Friday I went to the annual Dickson Realty Update. Nancy Fennell , Broker/Owner was pleased to inform us that once again we are the market leader in sales for 2011 at 20.81%. They are looking for new agents so here is your chance to join the best real estate company in Northern Nevada. She was pleased to inform that Dickson Realty is debt free besides the buildings they own and that they are in the process of installing a new teckknowledge platform for all the agents to use, should be up and running by Spring.
Lon Welsh author of “How to thrive in a down market” gave us a 1 hour lecture on how to market ourselves better. We then had the pleasure of Adam Stern of Own America… a Real estate investing course for aspiring investors or agents . They understand a few key fundamentals:
• Buy low and sell high by timing your buys when the market is down and selling when it is up.
• The American economy will come roaring back at some point.
• People who own a bunch of houses are rich.
If you or anyone you may know have real estate questions or inquiries in the Montreux, Galena Forest, ArrowCreek, Saddlehorn, St. James or Scotch Pines areas, please contact Louise Simpson by email at louise@montreuxgolf.com or by cell at (775) -750-1901.
Auction of Cottage at Montreux Golf and Country Club, Reno Nevada.
Today, January 25th, I went to the first live auction at Montreux. The property was a small cottage on Wetzel Court, 2,250 sq feet.
I was surprised to see many home owners were there to watch the process and a few ready to bid. One could bid one line as well. Of course we had all done our due diligence, had the place inspected for any structural problems or pest issues. The property was last sold for $900,000 and the opening bid was going to be $50,000.
Most people where not ready to go higher than $400,000 dollars. I would say the place needs about $15,000 put into it to make it a good rental or 2nd home. I know for certain that one could not build this cottage for the price it sold for. It is extremely high end with top appliances, great hardware, tiled and carpeted floors and has the 11 inch thick walls, built out of Arxx. Added to this one has to remember that is is in the private gated community of Montruex Golf and Country Club with its Jack Nicklaus Signature golf course.
It sold for $425,000 dollars to a bidder on line. Now the seller still has to accept the offer.
If you or anyone you may know have real estate questions or inquiries in the Montreux, Galena Forest, ArrowCreek, Saddlehorn, St. James or Scotch Pines areas, please contact Louise Simpson by email at louise@montreuxgolf.com or by cell at (775) -750-1901.
