Market Conditions in Teaneck>Question Details

Cowboys, Home Owner in Teaneck, NJ

If you purchased a home in bj for $400k & your property was assessed for $600k,can you appeal taxes? And is this what the house is worth aft

Asked by Cowboys, Teaneck, NJ Wed Feb 8, 2012

just. 6mo

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You have gotten some good advice here already.
The purchase price is powerful evidence of the value of your home.
I have been told that the "Tax Man" will not entertain differances less that 10%.

Sometimes it pays to just go in and see him with your closing documents in hand.
Be polite and friendly. You may be surprised
0 votes Thank Flag Link Wed Feb 8, 2012
you can always appeal your assessment. You may not win however as many mentioned based solely upon the purchase price. distressed sales and non arms length sales are thrown out. Your assessment can not be greater than actual market value. You will have to establish market value by closed sales that are not distressed type sales. You are not required to use an attorney nor are appraisals required though both may be helpful. I suggest you innitially speak informally with assessor and see how receptive they are to reviewing your assessment. They may be willing to adjust in the middle without going to county or state level for appeal.
0 votes Thank Flag Link Wed Feb 8, 2012
Yes, you are in a good position to appeal your assessment. The township is "allowed" a 15% discrepancy in the accuracy of their assessment, so that if the difference between the price you paid and the assessed value was $90,000 or less, it would not be worth pursuing an appeal. Your actual purchase price is certainly a valid factor to present upon appeal, but you would want to gather other comparables sold in the same area within the period allowed in the appeal process. Hope this is helpful.

Esther Schlanger
Sales Associate
V & N Realty Group, LLC
811 Queen Anne Rd.
Teaneck, N. J. 07666
0 votes Thank Flag Link Wed Feb 8, 2012
Tax authorities may not consider an REO purchase as an arm's length sale, as REOs are often known to sell below market value. Assessments should be based upon market value and it's a struggle for assessors to keep them that way. But you can always appeal your taxes and base your appeal upon your purchase price. If you can demonstrate that other comparable homes have sold at arm's length for the $400000 amount in your local area, it will bolster your casde. Maybe they will allow it or at least compromise with you. Nothing ventured, nothing gained.
0 votes Thank Flag Link Wed Feb 8, 2012
Talk to a local REALTOR about the comparable non distressed sales between 10/01/2010 and 10/01/2011. Also, check the appraisal for the property when you purchased it.
0 votes Thank Flag Link Wed Feb 8, 2012
Thanks. House was reo purchase. So is my house worth $600k like the comparables show ? I'm a 1st time home owner. All help is welcome!!!
0 votes Thank Flag Link Wed Feb 8, 2012
The assessed value is only a benchmark for calculations, and does not, in and of itself, mean that your taxes are too high. The assessment value is multiplied by the tax rate. Example: $600,000 (assessment) x .0150 (tax rate) = $9000 $500,000 (assessment) x .0185 (tax rate) = $9250 In the example, the property owner with the lower assessment actually has higher taxes.

What matters is how the assessment and taxes on your property compare to similar properties in your town. If the assessment on your property is higher than that of similar properties in your town, you may have grounds for a tax appeal.

If you had a REALTOR assist you in the purchase of your property, you could ask that REALTOR for tax data on properties in your town. Alternatively, that info is also available from the local town assessor's office. Evaluate your property against the comps to determine your next step.

Good Luck
0 votes Thank Flag Link Wed Feb 8, 2012
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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The purchase price does not dictate a change in assessment but can help. Uniformity of treatment requires
that value adjustments not be made simply due to a recent sales price. The subject property’s sales price may not necessarily be conclusive evidence of true market value, e.g.foreclosure or estate sale, and is not bindingupon the Tax Board. The circumstances surrounding a sale are always important.
Be aware since all property in NJ should be accesses at fair market value, this value is relflected in a equalizaiton ratio the town uses since its last reassessment. Teaneck has a equalization ratio of 104.34 or another way of saying it is that Teanecks assessed values are 4.34% over market value.
In any case the difference in your assessed value and purchase price should at least open a discussing with the county tax boards. you have until 4/1/12 to file ann appeal for 2012 taxes. For more detailed information see this website: http://www.state.nj.us/treasury/taxation/pdf/lpt/ptappeal.pdf.
0 votes Thank Flag Link Wed Feb 8, 2012
If your home was purchased as a straight sale (not a short sale or REO) it's very possible. Check out this link, though it deals with property tax appeals in Little Egg Harbor, the rules governing property tax appeals apply statewide.
http://www.trulia.com/blog/laura_giannotta/2011/02/little_eg…
0 votes Thank Flag Link Wed Feb 8, 2012
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