| Author |
Message |
    
amh
Citizen
Username: Amh
Post Number: 5
Registered: 3-2002
| | Posted on Thursday, July 31, 2003 - 10:43 pm: |     |
We are considering a few home improvement projects and are wondering what impact this might have on our home's assessment for tax calculations. Projects include:
1) addition of central air conditioning
2) conversion from oil heat to gas and boiler replacement
3) kitchen renovation, including new cabinets, countertops, and appliances
Has anyone had any experience with how any of these might affect a property's assessed value? |
woodstock
Citizen
Username: Woodstock
Post Number: 271
Registered: 9-2002
| | Posted on Thursday, July 31, 2003 - 10:50 pm: | |
If you need a permit, it can affect your tax assessment. I'd guess 1&3, but not 2. Call the tax assessor's office to get more accurate info...
Waiting For The Electrician, Or Someone Like Him |
bobk
Supporter
Username: Bobk
Post Number: 3253
Registered: 5-2001
| | Posted on Friday, August 1, 2003 - 11:10 am: | |
I am kind of hesitant to get going on this subject. You know the blood pressure thing.
However, here goes.
A house near where we live recently was listed and sold. The family that owned the house had a new kitchen installed after the reval. The assessment increased by about $22,500 to $25,000, although I have to admit I don’t know if they had other work done that might have added to the increase in assessed value, although there are no externally visible signs of this (such as an addition).
This is interesting since during the revaluation process Mr. Galante spoke time and time again that condition of kitchens and bathrooms was not a factor in the new assessments because the super hot market in the summer of 2000 (when the assessments were compiled in our neighborhood) condition wasn’t a factor in sales price.
For the record the house was listed at about 25% above the assessed value at a time when houses in other neighborhoods are being listed for 50% or more (in some neighborhoods much more) over the assessed value. I have no idea what it sold for, as it hasn’t appeared in the Star Ledger yet. However, the house was on the market for nearly two months and common sense would indicate it sold for less than the listed price.
I wonder if the high taxes and increase in assessed value for improvements is leading to a situation where homeowners are reluctant to impreove their properties.
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bobk
Supporter
Username: Bobk
Post Number: 3254
Registered: 5-2001
| | Posted on Friday, August 1, 2003 - 11:11 am: | |
I want to emphasis that the information posted above is from public records, the reval data base and the multiple listing service website. |
woodstock
Citizen
Username: Woodstock
Post Number: 272
Registered: 9-2002
| | Posted on Friday, August 1, 2003 - 12:30 pm: | |
bobk,
it did for us (matter when considering improvements). We've considered putting in an autoamtic sprinkler system, but we found out that our neighbors put one in and their assessment went up a noticable amount. We were also considering finishing our basement to give my daughter (and her soon to be born sister) a place to play, but lord knows how much THAT would increase our taxes.
And who gets hurt? The children...
Waiting For The Electrician, Or Someone Like Him |
jab
Citizen
Username: Jab
Post Number: 94
Registered: 3-2003
| | Posted on Friday, August 1, 2003 - 4:29 pm: | |
I've wondered about that as well. My fear is that updating the kitchen and bathroom will make our taxes go up enough that the house would be difficult to sell. On the other hand, I think the present kitchen and bathroom were probably a factor in how long our house was on the market before we bought it. Any idea if there is a breaking point at which most people will not consider a house due to its tax bill? |
oots
Citizen
Username: Oots
Post Number: 86
Registered: 6-2001
| | Posted on Friday, August 1, 2003 - 5:17 pm: | |
call ed galante the tax assessor for the lowdown on the taxes/improvements. he is only part-time-be sure you speak to him.
oots |
Jackie Day
Citizen
Username: Zoesky1
Post Number: 52
Registered: 6-2003
| | Posted on Friday, August 1, 2003 - 11:24 pm: | |
Jab, re the "breaking point," it's all so relative depending on the individual buyer, but I know the $15,000 mark freaks a lot of people out. $10,000 doesn't seem so bad around here. |
Joan
Citizen
Username: Joancrystal
Post Number: 1831
Registered: 5-2001
| | Posted on Sunday, August 3, 2003 - 5:03 pm: | |
amh:
Speak with the town tax assessor. That's the only way to find out for sure what impact your proposed improvements will have on your real property taxes.
If you are considering selling your home and you want to know what impact improvements may have on the selling price, speak with several local realtors whom you trust.
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margotsc
Citizen
Username: Margotsc
Post Number: 18
Registered: 7-2002
| | Posted on Sunday, August 3, 2003 - 8:29 pm: | |
Now I'm scared. Since buying our house in June 2002 (post reval, obviously) we have made major improvements -- central air, kitchen/powder room renovation. Central air was done over a year ago and the kitchen was done in March. We did have permits for the work. I don't believe we have seen an increase yet -- anyone know how long beofre the dreaded increase?! Will they come look at the house when I'm home? |
Brett
Citizen
Username: Bmalibashksa
Post Number: 24
Registered: 7-2003
| | Posted on Sunday, August 3, 2003 - 9:02 pm: | |
This is close to the thread so I thought I’d put my two cents in. My sister and I recently bought a house in Asbury Park, thinking this would be an investment in the future. Maybe in ten years we would have a great beach house. After a ton of renovations our taxes went from $2400 to $11000. We’re in the process of figuring out if we can afford it. We’re really hoping that if we sell, someone in the town counsel doesn’t pick it up and get it reassessed for much less. |
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