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Here is the question.
All the houses we are looking at have some of the updates, like
1. HVAC
2. Finished basement
3. Finished attic
4. Second or third bathroom
5. Enclosed porch.
But when I look up all these houses at the assessors web page NONE of the updates are reported.
It is funny, one of the houses i looked up has a dormered roof and it is sooo obvious from the photograph of the house that the assessors office has on their web page but the house still formally does not have finished attic.
The taxes are already huge (4000 and up). I am scared to think of the taxes raise after reporting the updates.
So do you have to report them after you buy a house in any way?
Do they come and look inside your house when you apply for homeowner exemption?
I understand that the situation vary from state to state, but I will apreciate any information (can be very useful to everyone who buys a house)
It all depends. Some towns look at things like this when a property is sold. Others only when they do a town wide reassessment. You need to find out the rules for the exact town the house is in.
Here is the question.
All the houses we are looking at have some of the updates, like
1. HVAC
2. Finished basement
3. Finished attic
4. Second or third bathroom
5. Enclosed porch.
But when I look up all these houses at the assessors web page NONE of the updates are reported.
It is funny, one of the houses i looked up has a dormered roof and it is sooo obvious from the photograph of the house that the assessors office has on their web page but the house still formally does not have finished attic.
The taxes are already huge (4000 and up). I am scared to think of the taxes raise after reporting the updates.
So do you have to report them after you buy a house in any way?
Do they come and look inside your house when you apply for homeowner exemption?
I understand that the situation vary from state to state, but I will apreciate any information (can be very useful to everyone who buys a house)
Tax Assessment (also known as Ad Valorem), is based on "Market Value."
The Tax Assessor will typically receive the information from the recorded deed when the property is sold.
A home owner can challenge property taxes by hiring an Independent Real Estate Appraiser.
An Assessor is supposed to re-assess every so years, 4, 8, or so on, depending on their rules. They use a "Mass Appraisal Model." However; Mass Appraisal Models do not take into account the true theory of "Market Value" when used alone and/or by others. The best way to re-assess is to have it appraised, according to "Market Value."
Definition of Mass Appraisal Model: "...A mathematical expression, that is supposed to show supply and demand factors interacting in the market."
In reality, it is just an Assessor's opinion (when the model is used by them), which doesn't hold beans. An Appraisal from an Independent Appraiser is what holds beans.
Assessor's have been guilty nationwide at skewing taxes.
Last edited by Greeenback; 03-12-2011 at 06:58 PM..
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Most real estate taxes are based on county assessor data, and when a home is sold the sales price is used to determine the latest value.
Modifications that increase the value are added to the value when the building permit is acquired. If the assessor is unaware of changes then they were likely done without permit. If any of those changes require a permit, then I'd be careful about buying it. The first time you do get a permit for something all non-permitted items will be inspected and it could cost a lot to get them brought up to code. Also, when you go to sell, the buyer may require inspections as a condition of sale. Any item not allowed will have to be undone. I ran into that once with a garage conversion to family room, it was not allowed due to a minimum requirement for two cars to be parked off street.
That would not do you much good in NJ. There is only one basis for appealing your tax assessment. That is purely on sold comps.
And, what do you think Independent Appraisers do? Comparable properties are related to Appraisal work. Comparable properties in real estate are related to value. And, value is based on a helluva a lot more than just comparable properties, especially when challenging the basis of the tax assessment.
Most real estate taxes are based on county assessor data, and when a home is sold the sales price is used to determine the latest value.
Modifications that increase the value are added to the value when the building permit is acquired. If the assessor is unaware of changes then they were likely done without permit. If any of those changes require a permit, then I'd be careful about buying it. The first time you do get a permit for something all non-permitted items will be inspected and it could cost a lot to get them brought up to code. Also, when you go to sell, the buyer may require inspections as a condition of sale. Any item not allowed will have to be undone. I ran into that once with a garage conversion to family room, it was not allowed due to a minimum requirement for two cars to be parked off street.
Thank you, bisojoe for you feedback, but
I would yet have to find a house in our city that has reported a second bathroom or a finished basement . ALL of them are done without a permit!
And, what do you think Independent Appraisers do? Comparable properties are related to Appraisal work. Comparable properties in real estate are related to value. And, value is based on a helluva a lot more than just comparable properties, especially when challenging the basis of the tax assessment.
Like I said. They are only going to look at sold comps. So I don't get your point that I highlighted. The value has already been determined on those sold properties.
Once it is appraised for the lender, the Appraiser will take it all into account. An Appraiser will account for it whether the lender is the client or not. Therefore; the market value will reflect those changes. The same market value the Assessor will receive from the recorded deed.
If there isn't a permit for something, it will be noted in the report, and show how it affects market value. Typically, the lender will want to lend on an updated property.
Like I said. They are only going to look at sold comps. So I don't get your point that I highlighted. The value has already been determined on those sold properties.
Like I quoted from you. You were referencing a "challenge." An Appraisal from an Appraiser can over turn the assessment given to a piece of property. Comparable properties is just one thing that is done to reach market value and/or solve a property economic problem.
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