Connect with us

Opinion Editorials

Ohio budget proposal penalizes real estate consumers

The Ohio budget proposal seeks to add a five percent tax on services rendered in the state, but Commissioner Testa’s testimony failed to address or understand the 20 times a home buyer would be taxed during the buying process.

Published

on

ohio budget

ohio budget

Ohio budget proposal includes tax on real estate services

News organizations, interest groups, and yes, individuals, have already spent countless hours analyzing Governor Kasich’s proposed Budget 2.0 which was released in early February, and the potential implications of a 5% sales tax on services provided to consumers. It would have been nice, had Tax Commissioner Joe Testa boned up even slightly on the real estate industry prior to his testimony before the Ohio House Finance and Appropriations Committee.

According to the Great Big List of Exempt/Non-Exempt Services, some things in the housing industry would remain untouched by the Ohio budget changes – construction, renovation, repairs and residential rent/leases. During his testimony, Commissioner Testa solely focused on one of the non-exempt real estate service items; and he (I feel) completely botched it. Granted, time was limited, but by only mentioning real estate commissions, not comprehending the way the majority of real estate transactions work, and by not taking into account all of the things that truly go into buying or selling a home, he really kind of blew off the industry’s concerns, and those of future buyers and sellers.

How real estate commissions actually work

Be they members of the National Association of Realtors® or not, it is licensed real estate brokers who collect commissions earned on the sale of real estate. To do otherwise would violate Ohio law, and when Commissioner Testa says all Realtors® would collect the sales tax, but this is not correct. 

The majority of real estate listings are listed as Exclusive Right to Sell, where the sellers pay the commission; they and not the buyers would be charged the sales tax on the commission, or service rendered.  Claiming that something is “not anti-competitive” because everyone will be doing so (kind of like that old line about jumping off a bridge our Mom’s used to say, right?) is about the furthest thing from the accuracy and the truth as one can get.

More services in real estate than just Realtor commissions

In many real estate transactions, as we addressed previously, there are inspections (pest, general home, well, septic, radon, & lead – and maybe meth in certain areas), appraisals, home warranties, loan broker fees, certain title fees, land surveys, attorney fees, (think deed prep) and don’t forget that 5% tax on the listing broker’s commission, all of which would probably be subject to a 5% sales tax paid by consumers. There are a great number of other things that may not be part of a “normal” deal, but are becoming increasingly more common, and when all tallied up – 5% here, 5% there, that could wind up devastating the real estate consumer.

Years before purchasing a home, one of the first things a prospective buyers does, is get a credit report and score.  If they happen to buy one, they may be charged a 5% sales tax. If that buyer has credit issues, and then seeks local debt counseling, and pays for it, boom, 5% sales tax. 

The same is true for a current owner who is seeking relief in the form of a loan modification or principal reduction, and may because of a program’s requirements, have to go into a debt counseling program in order to qualify, will then be forced to pay a 5% sales tax. 

Tax could hit consumers 20 times during a transaction

Speaking of the owner who is struggling or severely underwater, enter the short sale, which in Ohio during the first quarter of 2012 accounted for seven percent of all real estate transactions and rising steadily since 2001. Often in addition to all the other “normal” items in these transactions, there often are multiple appraisals (therefore multiple sales tax charges), sellers often seek the advice of accountants, attorneys and even investment counseling, their services would be subject to the 5% sales tax charged to the consumer. And what of the short sale negotiator or facilitator? Whoever pays their fee will be hit with that 5% sales tax as well.

The 5% sales tax has the potential to hit two consumers at least 20 times in one real estate transaction. ONE. Is it so vital to Ohio’s economy, which is driven in part by a healthy real estate market, to further hinder the ability to buy and sell homes by tacking on additional fees to consumers? Is this honestly the way to improve home ownership in this state which has been on a steady decline over the last seven years?

Katie Cosner, occasionally known as Kathleen, or KT, is a Realtor® with Cutler Real Estate and is active in her local Board of Realtors® on the Equal Opportunity & Professional Development Committee. She has been floating around online for a number of years, and is on facebook as well as twitter. While Katie has a few hardcore beliefs, three in the Real Estate World to live and die by are; education, ethics, and the law - insert random quote from “A Few Good Men” here. Katie is also an avid Cleveland Indians fan, which really explains quite a bit of her… quirks.

Opinion Editorials

Declutter your quarantine workspace (and brain)

(EDITORIAL) Can’t focus? Decluttering your workspace can help you increase productivity, save money, and reduce stress.

Published

on

decluttering

It’s safe to say that we’ve all been spending a lot more time in our homes these last few months. This leads us to fixate on the things we didn’t have time for before – like a loose doorknob or an un-alphabetized bookshelf.

The same goes for our workspaces. Many of us have had to designate a spot at home to use for work purposes. For those of you who still need to remain on-site, you’ve likely been too busy to focus on your surroundings.

Cleaning and organizing your workspace every so often is important, regardless of the state of the world, and with so much out of our control right now, this is one of the few things we can control.

Whether you’re working from a home office or an on-site office, take some time for quarantine decluttering. According to The Washington Post, decluttering can increase your productivity, lower stress, and save money (I don’t know about you, but just reading those three things makes me feel better already).

Clutter can cause us to feel overwhelmed and make us feel a bit frazzled. Having an office space filled with piles of paper containing irrelevant memos from five years ago or 50 different types of pens, has got to go – recycle that mess and reduce your stress. The same goes with clearing files from your computer; everything will run faster.

Speaking of running faster, decluttering and creating a cleaner workspace will also help you be more efficient and productive. Build this habit by starting small: try tidying up a bit at the end of every workday, setting yourself up for a ready-to-roll morning.

Cleaning also helps you take stock of stuff that you have so that you don’t end up buying more of it. Create a designated spot for your tools and supplies so that they’re more visible – this way, you’ll always know what you have and what needs to be replenished. This will help you stop buying more of the same product that you already have and save you money.

So, if you’ve been looking to improve your focus and clearing a little bit of that ‘quarantine brain’, start by getting your workspace in order. You’ll be amazed at how good it feels to declutter and be “out with the old”; you may even be inspired to do the same for your whole house. Regardless, doing this consistently will create a positive shift in your life, increasing productivity, reducing stress, and saving you money.

Continue Reading

Opinion Editorials

How to ask your manager for better work equipment

(EDITORIAL) Old computer slowing you down? Does it make a simple job harder? Here’s how to make a case to your manager for new equipment to improve your productivity.

Published

on

better equipment, better work

What is an employee to do when the work equipment bites.

Let’s be frank, working on old, crappy computers with inefficient applications can make the easiest tasks a chore. Yet, what do you do? You know you need better equipment to do your job efficiently, but how to ask the boss without looking like a whiner who wants to blow the department budget.

In her “Ask A Manager” column, Alison Green says an employee should ask for better equipment if it is needed. For example, the employee in her column has to attend meetings, but has no laptop and has to take a ton of notes and then transcribe them. Green says, it’s important to make the case for the benefits of having newer or updated equipment.

The key is showing a ROI. If you know a specific computer would be a decent upgrade, give your supervisor the specific model and cost, along with the expected outcomes.

In addition, it may be worth talking to someone from the IT department to see what options might be available – if you’re in a larger company.

IT professionals who commented on Green’s column made a few suggestions. Often because organizations have contracts with specific computer companies or suppliers, talking with IT about what is needed to get the job done and what options are available might make it easier to ask a manager, by saying, “I need a new computer and IT says there are a few options. Here are my three preferences.” A boss is more likely to be receptive and discuss options.

If the budget doesn’t allow for brand new equipment, there might be the option to upgrade the RAM, for example. In a “Workplace” discussion on StackExchange.com an employee explained the boss thinks if you keep a computer clean – no added applications – and maintained it will perform for years. Respondents said, it’s important to make clear the cost-benefit of purchasing updated equipment. Completing a ROI analysis to show how much more efficiently with the work be done may also be useful. Also, explaining to a boss how much might be saved in repair costs could also help an employee get the point across.

Managers may want to take note because, according to results of a Gallup survey, when employees are asked to meet a goal but not given the necessary equipment, credibility is lost.

Gallup says that workgroups that have the most effectively managed materials and equipment tend to have better customer engagement, higher productivity, better safety records and employees that are less likely to jump ship than their peers.

And, no surprise, if a boss presents equipment and says: “Here’s what you get. Deal with it,” employees are less likely to be engaged and pleased than those employees who have a supervisor who provides some improvements and goes to bat to get better equipment when needed.

Continue Reading

Opinion Editorials

How to build a company culture while working remotely

(OPINION EDITORIAL) It seems that even a post COVID-19 world will involve remote work, so how can you build and maintain a strong work culture that ensures growth and satisfaction?

Published

on

culture remotely

New startups and existing companies are starting to transition to a fully remote (or nearly fully remote) model, but what does this mean for work culture? If you’re not careful, your work culture could easily become diminished as you transition to a remote environment, and if you’re building a company from the ground up, you may not have a strong culture to begin with.

Culture isn’t something you can afford to give up, so how can you build and maintain your company culture while working remotely?

The importance of a strong work culture

Maintaining a strong, consistent company culture is vital, even if your company is operating remotely. With a strong work culture, you’ll enjoy benefits like:

  • Better recruiting potential. A company with strong work culture will seem more attractive to talented candidates. The best people in the industry will want to work at a place with a great team and a great set of values.
  • Like-minded teammates. Establishing a consistent work culture allows you to selectively hire, then maintain employees who are like-minded. Employees with similar goals and mentalities, even if they come from different backgrounds, will be able to collaborate more efficiently.
  • Smoother communication. A strong foundational work culture that establishes goals, values, and beliefs within an organization can enable smoother, more efficient communication. Staff members will be on the same page with regard to high-level priorities, and will be able to exchange information in similar patterns.
  • Lower stress and less turnover. Better work cultures generally mean lower stress for employees, and accordingly, less employee turnover. Of course, this assumes you’re hiring good fits for the organization in the first place.
  • A better public reputation. Your work culture can also boost your public reputation—especially if you emphasize core values that are important to your target audience.

How to build company culture remotely

Traditionally, you can use in-person team-building sessions, regular meetings, and workplace rules to establish and maintain your company culture, but while working remotely, you’ll need to employ a different set of tactics, like:

  • Hiring the right candidates. Building a great culture starts with hiring. You have to find candidates who fit with your organization, and already share your core values. If someone doesn’t agree with your high-level approach, or if they don’t like your rules or workflows, they aren’t going to do their best work. These same considerations should be applied to your third party hires as well; agencies and freelancers should also fit into your values.
  • Hosting virtual team-building events. You can’t host in-person team-building events, but that doesn’t mean that team-building is inaccessible to you. Consider hosting a video conference to introduce your team members to each other, or bond over a shared event. You could also host virtual game nights, or provide team lunches to celebrate wins. Any excuse to engage with each other in a non-work context can help employees feel more connected and part of the team, and there are plenty of options to make it work virtually.
  • Streamlining communication. Good communication is both a constituent factor and a byproduct of effective company culture. If you want your culture to thrive, you have to set good standards for communication, and encourage your employees to communicate with each other consistently and openly. People need to feel heard when they speak, and feel comfortable voicing their opinions—even if they don’t agree with their superiors. There should also be easily accessible channels for communication at all levels. Over time, this foundation will help your employee communication improve.
  • Improving transparency. Workplace transparency is important for any employer, but it’s especially important for remote businesses trying to build or maintain a strong culture—and it’s challenging if you’re operating remotely. If you’re open and honest about your goals and how you operate, employees will feel more trusted and more engaged with their work. Strive to answer questions honestly and disclose your motivations.
  • Publishing and reiterating company core values. One of the biggest factors responsible for making a company culture unique is its set of core values. Spend some time developing and refining your list of core values. Once finished, publish them for all employees to read, and make time to reiterate them regularly so employees remember them.
  • Making employees feel valued. Finally, and perhaps most importantly, make your employees feel valued. Take the time to show your appreciation however you can, whether it’s through a simple thank-you message or an occasional cash bonus, and be sure to listen to employee feedback when you get it.

Building a work culture in a remote environment is more challenging, and requires consideration of more variables, but it’s certainly possible with the right mentality. Spend time setting your priorities, and make sure you’re consistent in your execution.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!