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I saw a house that sold 10 years ago for $950k and it's now on the market for $825k. It has high taxes and it's been on the market for awhile — I'm betting it will most likely sell for around $750-775k. The town tax roll has the full market value at $815k. I'm wondering, if it sells for $750-775k, is that generally grounds for filing a tax grievance to have the home's full market value reassessed and the taxes lowered?
Hi...yes that is usually very good reason/grounds to file an abatement with the town. In my experience in my surrounding towns they may and usually do ask for supporting documentation...Proof. Similar houses that have sold at that price point, the homes condition has degraded, outside influence decreased value, etc..In my area an assessor may not have been out to see the property in some years or just did a driveby for the photo so the value they assign may not reflect what has gone on in those years with the property.
I saw a house that sold 10 years ago (at the peak of the bubble) for $950k
and it's now on the market for $825k.
It's probably still high.
Quote:
...if it sells for $750-775k, is that generally grounds for filing a tax grievance ...?
In a word... yes. A real answer will take several paragraphs of detail.
One of those details will be the resulting change in mil rate there as the property values drop.
How does square footage and lot size come into play? If the house sold for $750k (instead of the tax roll's $815k value), can I still make the case for lower taxes, even if it sits on acre and is just over 3,000 square feet? Or will the town say that the $815k is on par for the lot/square footage size, even if it sold for less than what they deem full market value?
Is there any way I can figure out if I have a legitimate case for lower taxes before I make an offer on the house?
By the way, I should mention this house is in Westchester County, NY, which is pretty bad when it comes to taxes.
so this goes beyond general interest into a specific home?
Yours is a Westchester County NY question, as each county and/or state has their property valuation rules. Some go by a sales price, some go by square footage or land, some go by comparable sales, or many other individual county determinations.
In my county, we only revalue every 8 years. Then, it is done on a "comparables" basis. They revalued effective 1/1/08, while our market was still strong. People's values went up 50-100%, and they complained but none of them would have taken the tax value as their market value. Fast forward to 2009 - 2011 and much lower prices. Everyone wanted a revaluation, and nobody got them.
Is it grounds for an appeal of the value? Absolutely, no matter where you are.
Will it work? Depends on the experience of others in the county.
The sale's price includes the land and house as a whole in most cases. The tax assessment includes the land and the house as a whole unless NY assesses differently.
There are times with large parcels that might include the house and some acreage and tax the rest of the acreage differently, but that is for very large parcels--at least in my state.
Call the town or county assessor/treasurer and ask the question.
How does square footage and lot size come into play? If the house sold for $750k (instead of the tax roll's $815k value), can I still make the case for lower taxes, even if it sits on acre and is just over 3,000 square feet? Or will the town say that the $815k is on par for the lot/square footage size, even if it sold for less than what they deem full market value?
Is there any way I can figure out if I have a legitimate case for lower taxes before I make an offer on the house?
By the way, I should mention this house is in Westchester County, NY, which is pretty bad when it comes to taxes.
If the tax assessor feels that the selling price was merely an aberration and, based on comparable sales, you merely got a good deal then, yes, they may choose to keep the assessment at the higher level. However, if it's listed on MLS, the number of days on the market would be a good indication that the property was exposed to a broad market and that there were no takers at the higher price level. Note that if you're getting financing and an appraisal is done for the property (which includes both the house and the land), that would be some of your best ammunition.
so this goes beyond general interest into a specific home?
Yours is a Westchester County NY question, as each county and/or state has their property valuation rules. Some go by a sales price, some go by square footage or land, some go by comparable sales, or many other individual county determinations.
In my county, we only revalue every 8 years. Then, it is done on a "comparables" basis. They revalued effective 1/1/08, while our market was still strong. People's values went up 50-100%, and they complained but none of them would have taken the tax value as their market value. Fast forward to 2009 - 2011 and much lower prices. Everyone wanted a revaluation, and nobody got them.
Is it grounds for an appeal of the value? Absolutely, no matter where you are.
Will it work? Depends on the experience of others in the county.
I have a specific home that I'm using as an example, but I have seen quite a few examples of the asking price being lower than the full market value, so I'm just curious as to what my options are in general. I'm a first-time buyer so no previous experience with navigating the tax landscape.
So is it common, as a buyer, to just contact the tax assessor's office and ask this same question to them (If I buy a house at X and the full market value is X, can I file a grievance and have the house reassessed?). For some reason, I haven't been able to get this answer from my real estate agent. With taxes being pretty outrageous here, it makes a big difference when considering a purchase.
I have a specific home that I'm using as an example, but I have seen quite a few examples of the asking price being lower than the full market value, so I'm just curious as to what my options are in general. I'm a first-time buyer so no previous experience with navigating the tax landscape.
So is it common, as a buyer, to just contact the tax assessor's office and ask this same question to them (If I buy a house at X and the full market value is X, can I file a grievance and have the house reassessed?). For some reason, I haven't been able to get this answer from my real estate agent. With taxes being pretty outrageous here, it makes a big difference when considering a purchase.
Don't confuse the tax assessment amount with market value. Sometimes they may be relatively close, but sometimes they are way off. The tax assessment is generally an unreliable figure for determining market value.
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