Dennis Price has written a letter to our Town Manager Ms. Tebo with an offer to purchase the old jail building which is adjacent to his property. His intent is to use the buiding for the sale of crafts and made an offer of $25,000. Mayor Miller indicated it would be on the agenda at the next council meeting and stated a 30 day notice should be given to the tenant of that building, Shaunda Wirts.
Later in the meeting, Mayor Miller apprised Dennis Price of the decision to bring his offer to the Council. Shonda Werts arrived with Arthur Natteal, hearing the conversation. Shonda first went up to the podium and stated that her pantry may have not paid any money in the lease but that it was important to at least 500 people. Arthur Natteal scoffed at Dennis Price’s offer and Dennis had explained that the building had not received any revenue and had been sitting vacant for some time. Furthermore Price had talked to the Tax appraiser and that is the amount it was appraised for. Initially it had shown the value as $35,000 but that included the Park, and the appraiser broke the price down to show the building value only at $25,000.
Arthur Natteal scoffed at Dennis Price mentioning the building was prime commercial real estate and could be worth $300,000 or more. As I have stated before Arthur Natteal is not the sharpest pencil in the Lofton, Tebo, Bullard, Brown Gang and this is why. But first I must mention that Mayor Miller requested a real estate appraisal be done. Again, Tebo never makes any recommendations which a manager should do but has to wait to be told what to do.
A real estate appraisal will be based upon the Market Value of the Property. It is an opinion of what a property would sell for in a competitive market based upon its construction, its features and benefits of that property (value). Also taken into consideration is the overall real estate market supply and demand and what other similar properties have sold for at the same condition the old jail is in. This is usually the initial determination before a Market Price is determined.
The Market price is what a willing, ready and qualified buyer will pay for the property and what the seller will accept for it. Price is determined by local supply and demand, the property’s condition and what similar properties have sold for without adding in the value component.
The difference between market value and market price is that the market value, in the eyes of the seller, might be much more than what a buyer will pay for the property or its true market price. Real estate is like economics. Value can create demand, which influences price. But without the demand function, value alone cannot influence price. As supply increases and demand decreases, price goes down and value is not influential. As supply decreases and demand increases, the price will rise and value will influence price. Market Value and Market Price can be equal in a balanced market.
And to you Mr. Natteal, I say, White Springs is not a hot spot where real estate prices are sky high. How many people really wish to move to White Springs? Yes it’s a beautiful little village but it is not the first place a commercial business would wish to buy property. So far we have leased it to an outfitter and then to a beauty shop and neither considered purchasing the building and it could be that there was insufficient business in our little Town of White Springs. So get a grip. And for Natteal, I will explain the Tax appraisal value, for which I believe Mr. Price was extremely fair in his offer:
The tax appraised value of a home or property is a figure that county tax offices use to determine what a property owner’s annual property tax will be. The county provides basic services to residents (e.g., fire and police service, road maintenance) which are paid for from the money collected from property taxes. Sometimes, local tax levies (such as for schools or county disability boards) are attached to property taxes, but the residents will first have had to approve the levy by simple majority vote in a local election.
In most areas of the country, a property’s tax appraised value is a straight percentage of its fair market value, the old jail does not include a homestead exemption so the appraised value is NOT reduced. Some counties have instituted an annual increase based upon an inflation index which I do not believe is the case in Hamilton County.. Furthermore, since counties have to pay for property tax reappraisals, they often only have appraisals done every 5 or 10 years, or upon the sale of a property.
Therefore Mr. Natteal, go back to school and gain some Economic criteria so that you may understand the Real Estate Values. Again White Springs is not a hot spot and the building is old so I believe Mr. Price gave a very good offer by securing the tax appraised value which very much may be 100% of its fair market value. So quit being so sarcastic about the matter. Mr. Price made a good and honest offer.
Furthermore, as Mayor Miller Stated, a Real Estate appraisal will be secured and the property may have to be advertised for sale to abide by the law.
Karin for the blog
P.S. The Council and Tebo have to also look into what it is costing the Town for insurance since the building is probably provided Windstorm and named Hurricane Coverage with risk of direct physical loss perils coverage and Liability coverage based uon the area of the building. It may be an additional savings in selling the building.