Did you Apply for an Abatement on Your Property Taxes? (Durham: comparable sales, sales) - City-Data Forum

NH2008 · 02-09-2009, 08:00 PM

If you applied for an abatement on your property taxes, I'd love insight into what the process was like. What worked and what didn't? What strategy was successful and what would be a waste of time? Basically, I'd appreciate any tips.

Our house was re-assessed right around the time we purchased it this fall for almost 50% more than we paid for it. The taxes are brutally high, and I'm very confident that the assessment is wrong - it's not like housing prices are going up, and our house was on the market almost 2 years when we bought it.

Our realtor is willing to write up a market report showing their valuation is wrong. Is this likely to help? There are several different grounds for requesting an abatement, and I want to do whatever is most likely to work!

Thanks!

GregW · 02-10-2009, 04:53 AM

Start by asking your town clerk what is the proper procedure. Follow her directions.

Inaccurate or inappropriate evaluations are a major problem with property taxes. The time lag in assessments in a rapidly changing economy leads to these errors.
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rmcewan · 02-10-2009, 05:35 AM

If this is related to lower value due to the housing market, your abatement won't work because all property in the town is likely reducing in value at a similar rate . The town has a budget, which is raised by proportionally taxing property based on assessed value. Assessed value is based upon, but is NOT market value. If all homes have gone down in value, then your proportion of tax does not change.

However, if your property in particular has been more severely affected than others and you can prove this to the town's assessor, then your abatement may be granted.

NH2008 · 02-10-2009, 06:09 AM

First, let me say wow - you get up really early!

Second, thanks! It's not just that the value of the house has gone down, it's also that despite that they just RAISED the assessed value and taxes quite a bit this fall. Our realtor says our house could never have sold for what they say it's worth, even at the peak of the market. And goodness knows the previous owner tried! Supposedly during the past assessment 50% of the town's assessments went up and 50% went down, so it wasn't across the board. I know my neighbors are in the same boat and frustrated.

So what I don't understand is, if the city is going to create pretend values for houses to get more tax revenue, why not just assess realistic values and raise the tax rate? Is it just a PR thing - a way of pretending you're not raising taxes?

rmcewan · 02-10-2009, 06:26 AM

Quote:

Originally Posted by NH2008

First, let me say wow - you get up really early!

Second, thanks! It's not just that the value of the house has gone down, it's also that despite that they just RAISED the assessed value and taxes quite a bit this fall. Our realtor says our house could never have sold for what they say it's worth, even at the peak of the market. And goodness knows the previous owner tried! Supposedly during the past assessment 50% of the town's assessments went up and 50% went down, so it wasn't across the board. I know my neighbors are in the same boat and frustrated.

So what I don't understand is, if the city is going to create pretend values for houses to get more tax revenue, why not just assess realistic values and raise the tax rate? Is it just a PR thing - a way of pretending you're not raising taxes?

So, I'm not on your city's side. However, your taxes went up, because the town needs more money - not because your home value went up. Everyone in your town is paying more. In some cases, a town may adjust lower assessments for a certain classes of home, which means raised them for others - this might be your 50/50 thing. e.g. Durham (horrific taxes) lowered taxes on smaller, older homes, and raised them on apartments. This hit students, but eased taxes for the town's older population. Also, if you have a twice-yearly tax bill, the 2nd bill is usually higher.

sgthoskins · 02-10-2009, 06:54 AM

Quote:

Originally Posted by rmcewan

So, I'm not on your city's side. However, your taxes went up, because the town needs more money - not because your home value went up. Everyone in your town is paying more. In some cases, a town may adjust lower assessments for a certain classes of home, which means raised them for others - this might be your 50/50 thing. e.g. Durham (horrific taxes) lowered taxes on smaller, older homes, and raised them on apartments. This hit students, but eased taxes for the town's older population. Also, if you have a twice-yearly tax bill, the 2nd bill is usually higher.

They can't adjust assessments based on how much money they need. Assessments have to be defended in court. This is done via comparable sales in the town. The town gets more money by adjusting the mill rate once the total taxable value of the town is established.

They simply can't just go adjusting assessments hoping to get more money, it doesn't work that way.

To the OP, your best bet is to go to the assessor's office and look at the sales over the last two years for homes that are the same style as yours. i.e. ranch, cape, colonial.

That isn't all you need to compare. Year built, finished living area, quality, and grade all come in to effect when running a sales analysis. If homes that are similar to yours are selling close to your assessed value then you don't have a leg to stand on.

Also go to the town and ask them for a copy of the property record card they have of your house. Make sure the info they have is correct. Some times there are data collection errors and you are paying for a finished basement or upper story that you don't have. Not saying this is the case but it does happen.

Every one should at least check their property record card once each valuation cycle to make sure the assessor's office has the CORRECT info on your house.

Keep in mind the assessor is usually considered the bad guy, but the values are derived from time proven methods and literally have to be defended in court if it goes that far. Unless the assessor is a complete moron he or she isn't going to throw around values that can't be explained.

NH2008 · 02-10-2009, 07:02 AM

I know there haven't been any comparable sales in 2 years because our realtor looked for them when we were trying to decide what to offer for the house. So is my best bet just to attach a copy of her market valuation as well as a copy of the assessment from the bank?

I live in a neighborhood of older houses (antique houses) with very little turnover. So if they're comparing my house to a new house that sold more recently and saying it's worth the same, of course our house would be in worse condition. Am I better off pointing out that while we may have the same square footage as a new house that sold for more, we don't have central air, 500 bathrooms, a brand new septic system, etc - or just including the market info?

sgthoskins · 02-10-2009, 07:11 AM

PM incoming.

BF66389 · 02-10-2009, 07:28 AM

They are probably comparing almost entirely based on bedrooms/bathrooms/property/square footage.

There is probably a very good chance they just made an error.

Were your neighbors valued upwards so dramatically as well? Our assessment went up *slightly* but nothing too dramatic.

NH2008 · 02-10-2009, 07:59 AM

I know at least one set of neighbors did have a dramatic increase.