In My Neighborhood in 07504>Question Details

Pg, Other/Just Looking in 07504

The property tax assessments seem much higher than what the houses sell for. How overvalued are these houses in this neighborhood?

Asked by Pg, 07504 Fri Feb 4, 2011

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Mary Petti-ABR,SFR, Relocation’s answer
Pg,

Let me clarify and amend my previous post. First of all I checked zip code 07054 (Parsippany) instead of 07504 (Paterson)-a little typing dyslexia there.
I just checked the correct zip code in the MLS. What I said holds true at least about the house prices being low (and below assessed value) because of short sales/as is sales/ fixer-upper homes/ fire damaged homes etc in the lower price brackets almost 100% of the time.
However there are 230 homes listed under $300k and it appears that almost all of those are also listed way under assessed value. And from my brief checking even most of the houses listed OVER 300K are listed below their assesed values as well.
I again suggest that you contact a local Realtor and ask what's happening, and/or contact the tax assessors office, to find out why the assesed values is so high as opposed to list/sales prices.
1 vote Thank Flag Link Sun Feb 6, 2011
BEST ANSWER
The NJ property tax assessments are supposed to be "at value". It is cost prohibitive to assess a town every year so the towns adjust the "ratio" to bring properties up or down in value. Due to the decrease in value in most towns it is most likely the real estate assessment will be off. If you are interested in a property and are concerned about the value ask you real estate agent to provide you with comparable sales of "arms length" transactions. In other words sales of properties that are not foreclosures or "short sales".
If you purchase a property and paid 15% or less than the property tax assessment you might be able to file a tax appeal.
0 votes Thank Flag Link Sat Feb 5, 2011
Tax assessment has nothing to do with current market value. Ignore assessments and concentrate only on recent sales.

-Marc
0 votes Thank Flag Link Fri Feb 4, 2011
I would venture to guess that those homes which are being sold at less then their "assessed value"
are either short sales. "as is" sales and/ or already bank owned. I just checked a few listings in the MLS and those in the lower list price bracket (200-300K) are almost ALL short sales and listed at prices under assessed value. Those in the $350 and up range are not , almost 100% of the time.

My suggestion is to speak to a local realtor who know's what happening in your area based on your concerns
0 votes Thank Flag Link Fri Feb 4, 2011
The tax assessments are old and most houses can be challenged and have the taxes lowered. The assessment is in no way representative of the actual value of the houses.
Kathleen Davis
Realty Executives Exceptional Realtors
kathdvs261@aol.com

contact me if I can help you with anything else
0 votes Thank Flag Link Fri Feb 4, 2011
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