Home Buying in Old Tappan>Question Details

Quentin, Home Buyer in Old Tappan, NJ

Why are tax accessed values for properties in Old Tappan significantly lower than asking/sold prices?

Asked by Quentin, Old Tappan, NJ Mon May 31, 2010

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Tax assessed values have nothing to do with market values. Tax values are only used for tax assessments. That is why Old Tappan like Alpine, Englewood Cliffs and Saddle River have relatively
lower taxes than other towns. You will notice that on an investment point of view, you will do much better
in towns with lower assessed values because they will appreciate much faster. Intelligent buyers that
bought in these towns specially business people get insulted with high taxes and they would rather pay a high price for the home knowing that it will appreciate much faster.
0 votes Thank Flag Link Thu Jun 10, 2010
Hi Quentin,
Old Tappan hasn't had a revaluation in a while. The county equalization ratio % for Old Tappan is only 68.27. Some towns with more recent re-vals are in the 90% + range. Tax rates for Old Tappan are 2.141 per thousand of home's value. Asking/Sold prices are determined from recent market activity, not the assesssed values.
Hope this might be helpful...
Web Reference: http://WWW.SUSANSTRUSS.COM
0 votes Thank Flag Link Mon May 31, 2010
Each town is require by law to have all the property in the town assessed by an independant assessor every few years (often 10 yrs) The assessor values every house at that time using a complicated formula and at that moment reflects the value of the house.
If you assume Old Tappan follows this principle then the assessed value of your home could have been calculated as far back as the year 2000 and in the 10 years that have ensued property values have changed quite a lot. The town has no interest in the actual value of your house today, all they want is a benchmark for all the houses in the town in order to calculate taxes fairly.
We find a lot of towns in Bergen county where the assessment was done 2 or 3 years ago and in that case the assessed value is very often 10 or 20 percent higher than the current selling price.
0 votes Thank Flag Link Mon May 31, 2010
This is a quite common misunderstanding.....generally the accessed value has no connection to the actual value of a home. Its use is mainly for the purpose of determining the taxes of a property.

The best way to determine the value for a specific property is through an appraisal or a CMA (comparative market analysis) done by a real estate professional.
0 votes Thank Flag Link Mon May 31, 2010
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