Northern New Jerse Area Real Estate

Out of everything you can think of when looking at homes as a buyer or a real estate agent, I bet you didn't think I would say to remember to always ask this question when you are touring a home to avoid embarrassment: May I use the bathroom?

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In New Jersey taxes play a big role in a homebuyers' decision-making process today, especially when they are looking in West Orange. Are taxes crucial in your town? As home prices change, the taxes seem to have been staying the same. It's not hard to find a home priced at $350,000 and taxes above $12,000 in West Orange, NJ.

Don't fret, though. Many homeowners geared up this year and filed for a tax appeal to get the taxes lowered and more in line with what they should be in this current housing market. The West Orange tax assessor has been overwhelmed. We helped many clients, friends and neighbors prepare documentation needed to file a tax appeal.

If you missed the April 1, 2009 deadline, get ready to file a 2010 tax appeal  between January 1 - April 1, 2010. If you're planning to sell before then your buyer still has a chance to lower the taxes right after the purchase or you can give an escrow credit.

Remember, you cannot use information on any house that sold after October 31, 2009 for your 2010 tax appeal. And you can contact us if you need help with comparables or you need a lawyer to help complete the tax appeal process for you. in the Essex and Union county area. We can connect you with our in-house lawyer and Broker of Record who specializes in tax appeals. He has won many this year for area residents.

Here are some tips if you're doing this on your own:

1. Visit you Tax assessor’s office and request a copy of your assessment card. This card will allow you to identify the town’s assessed value of your property.
2. Ask the Tax assessor for the tax ratio in you town.
3. Request the Petition of Appeal paperwork. In the case of West Orange, the paperwork is located at the Security desk of the parking deck in Codey Arena. We always found this amusing. You can also just download the A-1 Petition of Appeal form.
4. Review the NJ Property Tax Appeal Brochure that the County Board of Taxation provides.

The next question is...Are you Eligible for a tax reduction?

Here is the litmus test. A tax reduction can be reviewed if you can show that your assessed value is at least  15% greater that the market value of your property. If the difference is less that 15% your appeal will not be heard.

Let’s look at an example based on a West Orange, NJ property:

The total assessed value on the home (Land and Bldg) is $120,800. To calculate how this translates to market value, divide the assessed value by the tax ratio i.e...$120,800/.2182 or $553,620. Now, here is where the 15% rule kicks in: In order for your appeal to be reviewed all comparable sales in your area must prove that this house is valued less than $481,466.

If so, you may have  case. For more about the 15% spread to see how strong your chances are review this November 2008 The Star Ledger article.