8 Steps to Lowering Your NJ Real Estate Property Taxes
Tips for lowering your ever-increasing NJ real estate property taxes
If you feel like you are paying more than your fair share of property taxes, you are certainly not alone. Many homeowners believe their properties are over-assessed. Surprisingly a high percentage of homes really are over-assessed, anywhere from 30-60%, according to the National Taxpayers Union. Interestingly enough, only 2-3% of homeowners nationally ever attempt to appeal their taxes even though approximately 20-40% of appeals are successful. Read on to learn more about how to effectively appeal your NJ real estate property tax assessment.
Obtain Your Property Card
The first place to start is to get the information in your local tax assessor's file about your home from the NJ real estate property card, which will include information such as the method and data used to determine its value, its lot size, square footage, any known upgrades, in addition to the number of bedrooms and baths. Keep in mind that this is public information and you are entitled to see it regardless of who tries to deny you.
Review the Accuracy of Information
In the past, if you converted a closet into another bathroom, or an attic into an additional bedroom, or knocked down a wall to merge two small bedrooms into one large master suite, these improvements should be reflected on the property card. If information on the card is inaccurate, a new property assessment could increase its value as opposed to decrease it. The same holds true if the assessor believed your home had aluminum siding and brick exterior like your neighbors, when you really have vinyl and stucco.
Learn the Numbers
NJ real estate property tax assessors' offices vary in how they determine a home's value. Some base it on recent sales data from similar homes, others may estimate the cost to rebuild or use a combination of methods. Some municipalities incorporate tax breaks for farmers. The assessor may use the full determined value, or a percentage, such as 90% of the actual assessed value.
Get Comparable Sales
You can get sales data and comps from your local Team Chris Walsh agents or Realtor.com. You will want to be careful not to use estimates based on current NJ real estate listings, but instead actual "sold prices" for the time period you are researching. The local tax assessor's office also might have this data available. You will need a minimum of 3 to 5 homes, but there should be no need for more than 10 homes in your comparison.
Use the Correct Assessment Time Period
You will want to make sure your NJ real estate property tax assessment matches the same date the assessor used to calculate the value of your home. For example, if the municipal assessment was for March and you used data from December, your estimate may be considered inaccurate and your case could be invalid.
Consider Using a Professional Report
Although the cost of any savings you make would be offset by what you pay to a professional, depending upon how much you are looking to save, this expense could be worth it. Appraisers can charge anywhere from $300 to $600, and property tax consultants typically work on a contingency for 25% of the savings. Remember that if you recently refinanced your mortgage or took out a home equity loan, you could have access to a professional appraisal already.
Carefully Prepare Your Documents
After reviewing the data you gathered, determine if you can prove that your property was assessed at a higher value than that of nearby comparables. If so, prepare your argument on paper by kindly pointing out the differences in valuations you found between the assessor’s research and your own.
File the Appeal On Time
It is imperative that you appeal in a timely manner. Generally, you will have 60 days from the time your annual tax assessment was mailed to you, which usually occurs during the first 3 or 4 months of the year. You will want to hand deliver the packet so you can get a stamped receipt, or use certified mail, as both will give you an office date of delivery to ensure the correct filing time frame.
The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.
