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My wife and I are first time home buyers and we are looking to purchase a house in New Jersey. The asking price for the house is $325,000 and the current assessed taxable value is $244,000. The property tax for 2014 is $9,328. My question is, will the purchase price affect the assessment which in turn could affect the taxes? I'd would like to hear from recent home buyers their experience. Thank you in advance!
Cherry Hill went through re-assessment during the last 2 years. the $244K is probably the new assessed value and supposed to be closer to market value. You purchasing price will most likely not affect the tax. However, property taxes did go a bit lower for lots of folks after the re-assessment. The reason is that while the new assessed value is probably higher than what it was, they use a different base %. That percentage is most likely going to creep up over the next few years.
If you use this website, you can look up the property that you are interested in.
Cherry Hill went through re-assessment during the last 2 years. the $244K is probably the new assessed value and supposed to be closer to market value. You purchasing price will most likely not affect the tax. However, property taxes did go a bit lower for lots of folks after the re-assessment. The reason is that while the new assessed value is probably higher than what it was, they use a different base %. That percentage is most likely going to creep up over the next few years.
If you use this website, you can look up the property that you are interested in.
This poster is right on the money. You can appeal current taxes on your property if you feel they are too high, but there's never a guarantee they will grant a correction.
Location: The place where the road & the sky collide
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Quote:
Originally Posted by mreakus
This poster is right on the money. You can appeal current taxes on your property if you feel they are too high, but there's never a guarantee they will grant a correction.
I appealed mine & won without a lawyer, in the 90s.
The house is assessed $80,000 lower than the price being purchased at, and it could be argued it has lower taxes because of it.
OP is worried than when they purchase for the higher price, the town will come in and jack up the taxes based on that value.
I don't believe that to be the case. The taxes stay the same until the next reassessment.
(Which could be a concern that in several years).
Whats odd is Camden county went through tax reassessments in just the last few years.... so surprising that its so far out of line. One concern is if applying for mortgage, if the mortgage company's value of the house is closer to the assessment you could have problems getting a mortgage based on the higher price
Location: The place where the road & the sky collide
23,814 posts, read 34,678,989 times
Reputation: 10256
Quote:
Originally Posted by bellmark
I think the comments went astray.
The house is assessed $80,000 lower than the price being purchased at, and it could be argued it has lower taxes because of it.
OP is worried than when they purchase for the higher price, the town will come in and jack up the taxes based on that value.
I don't believe that to be the case. The taxes stay the same until the next reassessment.
(Which could be a concern that in several years).
Whats odd is Camden county went through tax reassessments in just the last few years.... so surprising that its so far out of line. One concern is if applying for mortgage, if the mortgage company's value of the house is closer to the assessment you could have problems getting a mortgage based on the higher price
During the real estate bubble my real estate taxes went up every year.
thats just over a year ago. Probably didnt even apply the reassessment taxes untill last year.
So how could a house be assessed at 245 and then 18 mos later sell for 30% more.
Actually OP needs to verify that they arent looking at pre-assessment value and taxes considering how soon its been. Immediately after moving in get hit with a bigger tax bill! Ouch
thats just over a year ago. Probably didnt even apply the reassessment taxes untill last year.
So how could a house be assessed at 245 and then 18 mos later sell for 30% more.
Actually OP needs to verify that they arent looking at pre-assessment value and taxes considering how soon its been. Immediately after moving in get hit with a bigger tax bill! Ouch
Well, having lived in Cherry Hill during the previous reassessment, I got my assessment lowered because the assessment was done by incompetents. They didn't comply with the law for the next reassessment time frame & let it hang, but they jacked up the tax bill every year during the boom. My tax bill really flew up the year after someone tore down a house on my street & crammed a McMansion onto the lot. I think that it does relate to the question.
Well, having lived in Cherry Hill during the previous reassessment, I got my assessment lowered because the assessment was done by incompetents. They didn't comply with the law for the next reassessment time frame & let it hang, but they jacked up the tax bill every year during the boom. My tax bill really flew up the year after someone tore down a house on my street & crammed a McMansion onto the lot. I think that it does relate to the question.
the OP would be a fool to argue this assessment
The taxes are based on 245k value.
They are buying for 325 or something.
"Hey idiot tax assessor!!! I demand you assess my house at its true value! I am paying 325k so I want to be taxed accordingly"
Sure.. no problem. We will adjust your taxes from $9,300 to $12,000
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