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REDUCTION IN TAXES COULD HELP HOUSE MARKETABILITY

By
Real Estate Sales Representative with ReMax Main Line 193029

We live in a fabulous area, Chester County, high quality of life, great schools, parks, events, economic health. 

We all pay fair amounts of our real estate taxes when we own property and it is just a fact of life.

What is usually unknown, is that our GOVERNOR in Pennsylvania passed a law regarding taxes and as citizens, we have a right to appeal the amount that we pay.  My client and builder friend told me about this a couple of years ago when I was selling homes for him in Downingtown.

Since just like in other parts of the country, the values of property has dropped in Chester County, (another fact of life in 2009),  it may be a good time to personally take the initiative to make a property more marketable especially if you would like to sell and/or you have a client Seller.  (for Realtors)

I was recently working with a client who was considering a house that was on the market in Downiningtown area and "the taxes are just so darn high".  (over $10,000) so I suggested this to the Sellers Agent.

This is not advertised, I just lucked into the information so I made sure I have it clear. I researched what can be done through the tax assessors office and a couple of my local connections.

The COMMON LEVEL RATIO is determined by the State and changes annually in July.    In Chester County, currently it is 51.7 and it is due to change in July.  Anyone can appeal their "assessment" by providing documentation to the Board of Assessment Appeals which would include the fair market value of a property.  The way to get this is to show recent sales of similar properties and/or an appraisal.  If the Board accepts the information, the Board will apply the common level ratio to the fair market value and the result is the new assessment and will be effective for the following year and forward. e.g.  property fair market value is $400,000 times 51.7 equals the assessment.

The assessment also has a "formula" for determining the amount in taxes depending on what township and school district you are in.

All appeals must be filed by August 3rd.

http://dsf.chesco.org/chesco/cwp/view.asp?a=1413&q=573702

This is the page in the county web site where you do this process.

 Hope this helps