Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Most towns appraised the homes to "real time value" OK so the houses fell 30% where is the decrease??? Try getting them to re assess your home and see what they say
Most towns appraised the homes to "real time value" OK so the houses fell 30% where is the decrease??? Try getting them to re assess your home and see what they say
In all fairness, they dont reassess you the minute values go up either. It's not truly "real time". Thats why they have to do complete town re-evals every once in a while.
BTW, where do you live that home values dropped 30%? Thats abnormally high. Especially for NJ.
Most towns appraised the homes to "real time value" OK so the houses fell 30% where is the decrease??? Try getting them to re assess your home and see what they say
you can file an appeal of your assessment every year. in this market, you'd be foolish not to.
and, 30% is extreme - maybe in some far flung places in the state, but most towns have not seen a decrease that excessive.
As a matter of fact a hand full of towns just so happened to reassess houses right before the collapse of the housing market. As for the housing prices, Wait until the banks start auctioning off the foreclosures. People are just walking out the front door of there house and telling the banks to take it it's yours....The housing market has fell in most towns at a minimum 12% and some towns as much as 30% If not the towns are keeping it quite to retain the ridiculous real estate tax they charge the home owners. I know this because I am a builder and hear it in the industry every day. I mostly build in Englewood Cliffs.
Quote:
Originally Posted by AnesthesiaMD
In all fairness, they dont reassess you the minute values go up either. It's not truly "real time". Thats why they have to do complete town re-evals every once in a while.
BTW, where do you live that home values dropped 30%? Thats abnormally high. Especially for NJ.
Most towns appraised the homes to "real time value" OK so the houses fell 30% where is the decrease??? Try getting them to re assess your home and see what they say
Every property in your town is allegedly assessed at market value during a town-wide reassessment. Thereafter, the annual taxes are adjusted on a town-wide basis based on a factor known as the Equalization Ratio or the "Chapter 1-2-3 Ratio."
Here's the problem: You're assessed at $500,000 and the value of your property is now only $350,000 so you feel entitled to a 30% reduction in property taxes because your house is now worth less than the assessment. But stop and think about that for a minute.
In theory, every house in town should be worth about 30% less, just as yours is. But the town still needs to raise 100% of its operating costs. So if they reassessed you for 30% less, they'd reassess the whole town for 30% less. Once reassessed, the town would raise the tax rate so it could still attain the required revenue.
Let's say the tax rate is 1.2. For a $500,000 assessment, your tax is $6000 (5000 "hundreds" at $1.20 per hundred).
Now your assessment is dropped to $350,000. You're happy!
And everyone else in your town gets a 30% assessment reduction too. They're happy!
But the town still needs to raise enough money to meet its budget, so it raises the tax rate to $1.72. You're all unhappy.
How much will you actually pay? You'll pay $6020 (3500 "hundreds" at $1.72 per hundred). No significant change.
In essence, this is what the Chapter 1-2-3 Ratio does without requiring an annual property-by-property reassessment. It subjects your tax assessment to a market comparison factor.
In the above example, the Ratio would be 143.00. Here's how it works:
Take the assessed value and divide it by the ratio for your town to attain your homes approximate market value. $500,000 / 1.43 = $349,650.
Ratios for every town in NJ can be found here: http://www.state.nj.us/treasury/taxation/pdf/lpt/chap123/chapter123statewide.pdf (broken link)
Still think you're over-assessed? Maybe you are.
There's a simple way to determine if your tax appeal stands a chance for success. Divide your assessed value by the "lower limit" ratio for your town as shown in the chart. If the result you attain is higher than your estimated market value, you may have cause for an appeal. If not, forgeddaboudit!
(When I ran the numbers on my house, I discovered that I'm probably under-assessed. Mums the word.)
Last edited by MaverickDD; 05-22-2008 at 07:49 PM..
Reason: typo
Every property in your town is allegedly assessed at market value during a town-wide reassessment. Thereafter, the annual taxes are adjusted on a town-wide basis based on a factor known as the Equalization Ratio or the "Chapter 1-2-3 Ratio."
Here's the problem: You're assessed at $500,000 and the value of your property is now only $350,000 so you feel entitled to a 30% reduction in property taxes because your house is now worth less than the assessment. But stop and think about that for a minute.
In theory, every house in town should be worth about 30% less, just as yours is. But the town still needs to raise 100% of its operating costs. So if they reassessed you for 30% less, they'd reassess the whole town for 30% less. Once reassessed, the town would raise the tax rate so it could still attain the required revenue.
Let's say the tax rate is 1.2. For a $500,000 assessment, your tax is $6000 (5000 "hundreds" at $1.20 per hundred).
Now your assessment is dropped to $350,000. You're happy!
And everyone else in your town gets a 30% assessment reduction too. They're happy!
But the town still needs to raise enough money to meet its budget, so it raises the tax rate to $1.72. You're all unhappy.
How much will you actually pay? You'll pay $6020 (3500 "hundreds" at $1.72 per hundred). No significant change.
In essence, this is what the Chapter 1-2-3 Ratio does without requiring an annual property-by-property reassessment. It subjects your tax assessment to a market comparison factor.
In the above example, the Ratio would be 1.43. Here's how it works:
Take the assessed value and divide it by the ratio for your town to attain your homes approximate market value. $500,000 / 1.43 = $349,650.
Ratios for every town in NJ can be found here: http://www.state.nj.us/treasury/taxation/pdf/lpt/chap123/chapter123statewide.pdf (broken link)
Still think you're over-assessed? Maybe you are.
There's a simple way to determine if your tax appeal stands a chance for success. Divide your assessed value by the "lower limit" ratio for your town as shown in the chart. If the result you attain is higher than your estimated market value, you may have cause for an appeal. If not, forgeddaboudit!
(When I ran the numbers on my house, I discovered that I'm probably under-assessed. Mums the word.)
this assumes everyone in town files an appeal, and that's doubtful (i'm not talking reassessment, but an appeal). appeals go by home sales, not your neighbors' assessment or what you think your house is worth. i'm in the process right now as compared to comps, my home assessment is overvalued about 20%, and i'll let ya know what happens after 6/10. (i'm the only one in my neighborhood doing it, as far as I know).
There is one problem with your theory, Not everyone in the town will realize there property value has dropped until they try to sell there house.
And about the budget, Did you ever hear about how much police officers are making a year in saddle river and most of upper Bergen county??? Maybe lay off a 10 of the hundred police officers they have making 120-150k a year for doing what?? answering a domestic complaint or a cat caught up a tree. Mean while the police in the Bronx are making 30k a year and most on welfare. I am just saying the towns have many ways to cut there bloated out of control budget.
Quote:
Originally Posted by MaverickDD
Every property in your town is allegedly assessed at market value during a town-wide reassessment. Thereafter, the annual taxes are adjusted on a town-wide basis based on a factor known as the Equalization Ratio or the "Chapter 1-2-3 Ratio."
Here's the problem: You're assessed at $500,000 and the value of your property is now only $350,000 so you feel entitled to a 30% reduction in property taxes because your house is now worth less than the assessment. But stop and think about that for a minute.
In theory, every house in town should be worth about 30% less, just as yours is. But the town still needs to raise 100% of its operating costs. So if they reassessed you for 30% less, they'd reassess the whole town for 30% less. Once reassessed, the town would raise the tax rate so it could still attain the required revenue.
Let's say the tax rate is 1.2. For a $500,000 assessment, your tax is $6000 (5000 "hundreds" at $1.20 per hundred).
Now your assessment is dropped to $350,000. You're happy!
And everyone else in your town gets a 30% assessment reduction too. They're happy!
But the town still needs to raise enough money to meet its budget, so it raises the tax rate to $1.72. You're all unhappy.
How much will you actually pay? You'll pay $6020 (3500 "hundreds" at $1.72 per hundred). No significant change.
In essence, this is what the Chapter 1-2-3 Ratio does without requiring an annual property-by-property reassessment. It subjects your tax assessment to a market comparison factor.
In the above example, the Ratio would be 1.43. Here's how it works:
Take the assessed value and divide it by the ratio for your town to attain your homes approximate market value. $500,000 / 1.43 = $349,650.
Ratios for every town in NJ can be found here: http://www.state.nj.us/treasury/taxation/pdf/lpt/chap123/chapter123statewide.pdf (broken link)
Still think you're over-assessed? Maybe you are.
There's a simple way to determine if your tax appeal stands a chance for success. Divide your assessed value by the "lower limit" ratio for your town as shown in the chart. If the result you attain is higher than your estimated market value, you may have cause for an appeal. If not, forgeddaboudit!
(When I ran the numbers on my house, I discovered that I'm probably under-assessed. Mums the word.)
As a matter of fact a hand full of towns just so happened to reassess houses right before the collapse of the housing market. As for the housing prices, Wait until the banks start auctioning off the foreclosures. People are just walking out the front door of there house and telling the banks to take it it's yours....The housing market has fell in most towns at a minimum 12% and some towns as much as 30% If not the towns are keeping it quite to retain the ridiculous real estate tax they charge the home owners. I know this because I am a builder and hear it in the industry every day. I mostly build in Englewood Cliffs.
According to this NJ.com: New Jersey by the numbers, prices in Englewood cliffs were way UP in 2007. A whopping 23%. Of course, new construction sales have take a dive throughout the state, so as a builder, maybe that is what you are seeing. As a whole, NJ has done better than most of the country in retaining it's prices. In fact, according to this site, in Bergen county 40% of towns median home value went up, and only 5 towns out of 69 went down 12% or more. My wife comes from a family of builders, so I know what you are going through. Some places are still hot for new construction though. Those KHov houses in North Caldwell are selling out fast, but I know this is not the norm.
Well I dont know about all the numbers being floated around in the above post but heres my story. I bought a basically new construction house in 06. (all they left standing of the original structure was 2 walls). Went from a 1 story 2 bedroom to the montrosity it is now. Because of this the town had to reasses the property after we purchased it. The FMV at the time was over 500K according to 2 diff independant appraisers. (we did not pay that much) The city tax assessors office appraised it around $170. 60 something for the land and just over 100 for the house....I'm not complaining.
Last edited by RobRiguez; 05-22-2008 at 09:31 PM..
Well I dont know about all the numbers being floated around in the above post but heres my story. I bought a basically new construction house in 06. (all they left standing of the original structure was 2 walls). Went from a 1 story 2 bedroom to the montrosity it is now. Because of this the town had to reasses the property after we purchased it. The FMV at the time was over 500K according to 2 diff independant appraisers. (we did not pay that much) The city tax assessors office appraised it around $170. 60 something for the land and just over 100 for the house....I'm not complaining.
what that tells me is that Edison hasn't been reassessed in awhile. what is your tax rate? if you read mavericks post above, what they did was take your FMV and apply "a" ratio (which is applied to every house) to get your assessed value. believe me, you're not getting over like you think you are
last year my assessed value was about $260K - I paid more for the house when I purchased it a bunch of years prior - and it was new construction!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Understanding Assessments
(i'm the only one in my neighborhood doing it, as far as I know).
