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House Bill 1637 amends a section of the Illinois Property Tax Code regarding preferential assessments for residential developments, essentially changing the acreage threshold from "in excess of 10 acres" to "in excess of 5 acres" to recognize that many developments, particularly downstate, are smaller in acreage.

The new law (Public Act 95-135), effective January 1, 2008, will ensure that when farmland or vacant land in excess of 5 acres is platted or subdivided into separate lots for development, the assessed valuation of all or part of the property is not changed from the vacant or farmland assessment level until a habitable structure is built on any lot of subdivided property, or when any lot is used for a business, commercial or residential purpose or upon the initial sale of any platted lot.

The assessed valuation of the remaining property, when next determined is reduced proportionately to reflect the exclusion of the property that no longer qualifies for this valuation. IAR thanks the efforts of our chief sponsors, Representative Don Moffitt and Senator David Koehler.

Before an appraiser arrives, there are a few things you should know. By law, an appraiser must be state licensed to perform appraisals prepared for federally related transactions. Also by law, you are entitled to receive a copy of the completed appraisal report from your lender.

To facilitate the appraisal process, it's beneficial to have these documents ready for the appraiser:

• A plot plan or survey of the house and land (if readily available)
• Information on the latest purchase of the property in the last three years
• Written property agreements, such as a maintenance agreement for a shared driveway
• List of personal property to be sold with the home
• Title policy that describes encroachments or easements
• Most recent real estate tax bill and or legal description of the property
• Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
• Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
• A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending".
• Information on "Homeowners Associations" or condominium covenants and fees.
• A list of "Proposed" improvements if the property is to be appraised "As Complete".

Once your appraiser has arrived, you do not need to accompany him or her along on the entire site inspection, but you should be available to answer questions about your property and be willing to point out any home improvements.

Click HERE for our video on How To Prepare for Your Appraisal Inspection.

Here are some other suggestions:

• Accessibility: Make sure that all areas of the home are accessible, especially to the attic and crawl space
• Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter, but they're human beings too! A good impression can translate into a higher home value
• Maintenance: Repair minor things like leaky faucets, missing door handles and trim
• FHA/VA Inspection Items: If your borrower is applying for an FHA/VA loan, be sure to ask your appraiser if there are specific things that should be done before they come. Some items they may recommend might be: repair defective structural components (foundation, joists, etc.); repair defective mechanical systems (electrical, plumbing, HVAC); remove peeling paint and repaint the effected area; provide inspection access to the attic and crawl

Author: Brian J. Davis, RAA - Brian Davis & Associates - Brian has over 22 years of appraisal experience in Central, IL and hosts the Appraisal Scoop blog and the WinTOTAL Users Group an email forum for appraisers

Most areas of the state saw modest increases in the median sale price in the second quarter with slower sales compared to last year.

According to IAR's second quarter report, the Illinois median home sale price was $207,500, up 0.2 percent from $207,000 a year earlier. Total home sales (single-family homes and condos) totaled 43,080, down 16.1 percent from 51,332 home sales in the second quarter of 2006.

“Most counties reporting saw home sale prices stabilize or uptick year-over-year during this period, which is a good indicator that the housing market is healthy in Illinois. Much of the decline in sales can be attributed to the market’s transition back to a more normal pace as well as some uncertainty from potential buyers and sellers about the best time to enter the market,” said IAR President Robert Zoretich. “Home sales should improve later this year from pent-up demand, steady job growth, and improved consumer confidence in the housing market.”

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