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The Battle of the Appraiser, the Assessor & Me!

By
Real Estate Agent with RE/MAX Properties

Every few years, my job as a Realtor becomes a lot busier, but not because I'm listing and selling homes, in Northwest Bergen County --- Franklin Lakes and Wyckoff, in particular.  It's because of the dreaded REVALUATION!!  This is the time where towns realize the taxes they collect aren't enough to pay for the programs they've promised their residents.  What to do.  What to do,

For the last 25+ years, I've asked the same question of all the Assessors I've worked with --- why don't you assess homes for as close to REAL MARKET VALUE as you can, then raise the tax rate to meet the needs of the residents?  But, they continue to tack on numbers that are so obviously in excess of the real value of the homes that there's a stampede to meet with the appraisers who came up with what I call Market Values in Fantasyland.

For years, towns have been overwhelmed with homeowners standing on lines outside their offices demanding an explanation of their latest assessment.  It got so bad that towns like Wyckoff arranged for homeowners to meet with homeowners so they could each explain their case.  The only way a homeowner could make a case for a tax reduction would be to bring comparable homes that sold between October 15 of the previous year to October 15 of the current year.  Guess how they get those comps?  Bingo --- Realtors!

So here's my solution:  Assessors, taxpayers are on to you.  They know you think they'll feel better to see their home has increased in value, and you have kept the tax rate "low."  The problem is it makes no sense, much like the equalization ratio.  It's called "cookin' the books."

 

Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Irvine Realtor®

There's something wrong with your website, Kate.  I went to visit it, and the landing page produces this error:

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Feb 20, 2015 01:21 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Uh oh, maybe the Bergen County Assessor's office didn't like being accused of "cookin' the books."

Feb 20, 2015 03:06 AM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Oh wow, very interesting story. Thank you for sharing! Best wishes to you in the future.

Feb 20, 2015 04:09 AM
Kate Conover
RE/MAX Properties - Franklin Lakes, NJ

Most people understood "cookin' the books" was meant to be funny.

Feb 20, 2015 04:18 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Kate - I've helped many people with valuations to take to the assessor's office over the years especially when our values were dropping and the assessor didn't seem to be in a hurry to reduce values.

Feb 20, 2015 01:44 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Kate Conover well, town wants to make certain amount of money - which is a product of assessed value and tax rate. If one goes down, the second one automatically goes up! My town tax rate has gone up from about $12 to $16 - 33% up - when the real estate assessments based on recent sales went down by 30%. The net gain to town - about 5% in total revenue!

Feb 20, 2015 02:24 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Great post Kate. People need to know that Real Estate professionals can be used for more than just buying and selling homes. We are a wealth of knowledge and are happy to assist  homeowners in any way we can!

Feb 20, 2015 11:20 PM
Kate Conover
RE/MAX Properties - Franklin Lakes, NJ

Thank you all for your comments.  While I understand assessors don't want to "back down" on their assessments, I also understand what makes sense and what doesn't.  Stop telling people their homes are worth $750,000 when its fair market value is $595,000.  Assess it at market value, and raise the rate. Homeowners understand why they pay taxes --- they just want their assessments to make sense.  Thanks again!

Feb 21, 2015 01:12 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Here homes are assessed at a lesser value then actual sales and taxes have been going down. You get a trim notice in Late August and you have till the end of September to dispute the assessment.

Feb 21, 2015 05:01 AM