Assessments for road repair
11 years ago
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tax assessment
Comments (16)Keep in mind that a tax assessment number, even one supposedly set at "full valuation or market value", isn't done to set sales prices, or even truly related to it. The point of any assessment figure is to fairly rate the value of one house to generally similar others for the purpose of balancing the taxes paid by each relative to the others. You could have an assessment value of $13,247,236,758 and it would be perfectly correct if all other similar structures within your taxing jurisdiction had roughly the same assessed value. To properly grieve your assessment the key is to compare your house's valuation with other similar houses. If that's out of whack, then you have a case. Now, in some taxing jurisdictions purchase price and/or sale date has a stronger effect (CA is one state like this, IIRC), resulting in long-held properties having much, much lower assessed values. But your comment about the town re-doing the taxes every two years leads me to believe you're not in a state that leaves old assessments in place until resale. However, in both cases (i.e. whether there is town-wide periodic review or where values are only adjusted at resale) the principle is still the same: the assessment figures among all similar houses (or similar and resold within the same period if that's the criterion) should be the same. Historically towns have deliberately linked rising assessments to rising home values creating a spurious belief that the taxes should be the same as the purchase price. This was probably done to confuse (and soothe) irate taxpayers, and is now coming back to bite towns in their municipal butts as people with declining home values protest their assessments. Even in a down market (when describing purchase price), a higher-than-probable-sale-price assessment can still be correct as long as all similar properties within the same taxing district stay the same relative to one another. In fact purchase prices are not particularly useful assessment-setting tools since many have eccentric components (ill-informed or particularly desperate buyers and sellers, shared closing costs, repair allowances, extra furniture that is conveyed, just to name a few). The only things that properly belong in the assessment calculations are fairly fixed things like size, age, location, # baths, amenities like pools and fireplaces, and in some farily extreme cases, condition, etc. While these are also commonly factors in sale prices, it doesn't mean that all sale prices accurately predict tax assessments. HTH, and good luck, L...See MoreBuying the highest assessed home on the street.....
Comments (15)OK, thanks for the background information. The house you like is not 'a crown among thorns'. It's just been fixed up more than its neighbors. So...you will pay more for the already-improved property. I don't see a problem with that if it difference isn't huge. How WELL has it been added on to and remodeled? Would you be ahead to buy and remodel a neighboring home? We own one of the smaller homes in our neighborhood. We bought a 1950's ranch on a nice lot in a nice neighborhood of mostly larger homes and did a teardown. We are 'money ahead' of what we would have had if we'd just remodeled. The good existing neighborhood plus other teardowns after ours have increased the value of our property. There are now only three other old ranches in the area -- future teardowns. OTOH, our DS and DIL bought an old house in an established Chicago neighborhood about the same time we moved. The prior owner had done some remodeling. It wasn't THE nicest house on the block when they bought ten years ago, but it's starting to look better and better as the others *deteriorate*. The neighborhood has gone downhill as older people sold to immigrants who have different values. The nice park at the end of the street isn't as pleasant and safe. The local school is trying to cope with children who speak ten other languages at home. DS remodeled their kitchen and replaced pipes and electrical, but they have decided NOT to 'improve' further; the area no longer warrants it. I'm trying to illustrate how "Things (can) Change."...See MoreHas anyone filed for a property tax assessment appeal before?
Comments (9)I assume you already know the assessment rate used by your municipality, and the equivalent market value you are being taxed for. If you purchased your home recently, and haven't made improvements that jacked up its assessment value (e.g., by pulling permits), the purchase price will almost surely be used as the basis. It will also, in my experience, be very difficult to claim your house is worth LESS than what your paid for it recently. You would need to show how it had declined -- i.e., a development that eliminated your water view, elimination of a bathroom or bedroom, etc etc. If you have been in the home for a long time, you need to compare the market value they are using with comparable values in your area. A real estate agent is best for help in that....See MoreAppealing tax assessment
Comments (3)The procedures for appealing assessed values vary from state to state and from municipality to municipality as do the assessments themselves. In general, purchase price has little to do with assessed value for obvious reasons - intra family sales, foreclosure bargains, etc. Comparison with similar properties in the immediate area is a better approach in seeking an adjustment. You do have to keep in mind, however, that formal assessment/revaluation is not done every year or even every 10 years in many cases. Your neighbors' houses may be under valued because they have not been assessed for many years. Inaccurate or lagging assessment on these properties will not lower your valuation. Btw: are you sure about the hand made nails? This would be pretty much unheard of in a house less 200 years old....See More- 11 years ago
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