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Message |
    
wmcnair
Citizen
Username: Wmcnair
Post Number: 7
Registered: 5-2004
| | Posted on Monday, July 25, 2005 - 8:01 pm: | 
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I just received a call from the real estate broker who sold me my South Orange home in 2001. She is contacting all of her clients to inform them that South Orange will undertake a revaluation in 2008, with property taxes to be based on October 2007 home values.
From reading this message board I was aware that this was likely to happen, but I was not prepared for her to tell me that everyone's property taxes will go up as a result. My understanding was that the total amount of taxes paid by South Orange homeowner's would not necessarily increase but that the distribution of taxes would. Is she correct?
In her opinion, homeowners in the Montrose and upper Wyoming sections of South Orange will likely see the biggest increases. She also noted that the real estate market is definitely showing signs of cooling, at least in this area, as homes for sale are staying on the market for months rather than weeks. |
MHD
Citizen
Username: Mayhewdrive
Post Number: 2631
Registered: 5-2001
| | Posted on Monday, July 25, 2005 - 8:09 pm: |
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read as: desperate real estate broker trying to scare you into selling, so she can make $30k+ from you |
susan1014
Supporter
Username: Susan1014
Post Number: 868
Registered: 3-2002
| | Posted on Monday, July 25, 2005 - 11:09 pm: |
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Is there any recourse against real estate professionals who pass bad information? What are the criteria for their licensing?
Just wondering... |
Stuart0628
Citizen
Username: Stuart0628
Post Number: 90
Registered: 2-2003
| | Posted on Monday, July 25, 2005 - 11:16 pm: |
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Is there any evidence that one side of town has appreciated in value disproportionately to another?
I can't form an opinion based on scare tactics, I'd like to see facts. |
Rastro
Citizen
Username: Rastro
Post Number: 1329
Registered: 5-2004
| | Posted on Tuesday, July 26, 2005 - 12:43 am: |
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WCMcNair, you really should talk to the broker at your agent's office, and complain. Unless she has some secret information that the rest of the town is unaware of, the reval will make some people's taxes go up, and others will go down. The overall budget of the town should stay the same. People whose homes have appreciated significantly more than others in town will likely see an increase.
But remember, your home has to have appreciated faster than other homes in town for your taxes to go up. That means that your investment is doing well. I'm not one to belittle the tax problem in town. but remember that the point of a reval is to equalize taxes. It means that if your taxes end up going up, your neighbors have been shouldering your tax burden under the way our tax system is devised.
Is our tax system stupid? Absolutely. And the fact that we do revals so infrequently is what makes it that much worse. |
Sheena Collum SHU
Citizen
Username: Sheena_collum
Post Number: 305
Registered: 4-2005
| | Posted on Tuesday, July 26, 2005 - 12:58 am: |
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The revaluation is costing $500,000 so hopefully some good will come out of it |
Rastro
Citizen
Username: Rastro
Post Number: 1331
Registered: 5-2004
| | Posted on Tuesday, July 26, 2005 - 1:06 am: |
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Sheena, it's a requirement. We don't have a choice. It's the way our tax system works, and the county has required that we do one.
And realistically, if it's not done, taxes get so out of whack that people end up being unable to sell their houses for any reasonable amount because the mortgage on the home would be higher than the taxes.
Let's say there are three houses in town. One is worth $100,000, one is worth $500,000 and one is worth $2,000,000. but ten years ago, they were all worth the same. Should their taxes remain equal forever? Of course not. As I said, the problem with our system is not that revals are done. It's that they're done so infrequently. Given that it will be over 15 years since the last reval when this one is done, the amortized cost is less than $35k per year. |
Sheena Collum SHU
Citizen
Username: Sheena_collum
Post Number: 308
Registered: 4-2005
| | Posted on Tuesday, July 26, 2005 - 1:10 am: |
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lol - I know what you're saying Rastro and I'm glad one is being done but the number 500k just makes me get goosebumps.
If it is required by the county, how is it that some places go so long without one? Is there not a mandate on time when each town needs to have one? |
Rastro
Citizen
Username: Rastro
Post Number: 1335
Registered: 5-2004
| | Posted on Tuesday, July 26, 2005 - 1:41 am: |
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Sheena, towns fight it. Newark fought it for (I think) 40 years. Other towns embrace it and do it more frequently than required by the state (spitz can give more details). If it's done more frequently, it costs less.
And think of it this way. It's only two Tony Smith sculptures.
and what the hell am I doing up this late? |
Spitz
Supporter
Username: Doublea
Post Number: 1224
Registered: 3-2003
| | Posted on Tuesday, July 26, 2005 - 7:14 am: |
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$500,000 sounds high for the total revaluation costs. I know that this is a figure that has been mentioned in the past. I assume it covers the actual amount paid to the appraisl firm as well as all related costs of appeals, etc.
Nevertheless, it sounds high in comparison to the revaluation costs of other towns of similar size. A revaluation is not cheap, but I don't think it should cost that much.
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MHD
Citizen
Username: Mayhewdrive
Post Number: 2637
Registered: 5-2001
| | Posted on Tuesday, July 26, 2005 - 8:03 am: |
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Spitz,
Look at it this way...it only costs the equivalent of 2 Tony Smith statues.  |
Spitz
Supporter
Username: Doublea
Post Number: 1226
Registered: 3-2003
| | Posted on Tuesday, July 26, 2005 - 8:27 am: |
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I know Bobk must be out there - how much were the total costs for Maplewood's reval, including costs in defending appeals? Maplewood is larger than South Orange.
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Bob K
Supporter
Username: Bobk
Post Number: 9043
Registered: 5-2001
| | Posted on Tuesday, July 26, 2005 - 8:42 am: |
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I believe the fee to the reval company, CVI, was around $250,000. There was an informal review process where the Town brought in extra assessors to help our part-time assessor with reviews and I have no idea of the cost of that process. In addition I believe a fairly large number of people filed formal appeals with the county board and again I don't know the costs there.
Remember this was in 1999. |
Spitz
Supporter
Username: Doublea
Post Number: 1227
Registered: 3-2003
| | Posted on Tuesday, July 26, 2005 - 8:48 am: |
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Thanks. I have a feeling that the BOT is using the $500,000 as the worst case scenario. |
Spitz
Supporter
Username: Doublea
Post Number: 1228
Registered: 3-2003
| | Posted on Tuesday, July 26, 2005 - 8:53 am: |
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Incidentally,wmcnair - I suspect that the call you received from the real estate person borders on the unethical. MHD has her number right. |
Bob K
Supporter
Username: Bobk
Post Number: 9044
Registered: 5-2001
| | Posted on Tuesday, July 26, 2005 - 8:59 am: |
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Stuff happens. On the evening that we received our reval notice in late 1999 we just happened to get a call from one of the local real estate salespeople who my wife knew casually asking if we wanted to sell. I ended up discussing this with the office manager. |
wmcnair
Citizen
Username: Wmcnair
Post Number: 8
Registered: 5-2004
| | Posted on Tuesday, July 26, 2005 - 11:06 am: |
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Thanks for the feedback. Her phone call now seems underhanded rather than helpful. She did say that if I was thinking of selling it would make sense to do so before the revaluation. Needless to say, if I ever do decide to sell she will not get the listing! |
Nonymous Reingold
Supporter
Username: Noglider
Post Number: 8542
Registered: 1-2003
| | Posted on Tuesday, July 26, 2005 - 11:14 am: |
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Such a sale could end up being mutually beneficial. |
Newstead
Citizen
Username: Newstead77
Post Number: 15
Registered: 9-2004
| | Posted on Tuesday, July 26, 2005 - 8:43 pm: |
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While the realtor was trying to take advantage of the situation - the realtor's basic proposition is probably fair. The Montrose area will likely see an increase in taxes as houses in that area have appreciated significantly since the last reval. Not sure about Upper Wyoming ...
In my opinion, Newstead is a mixed bag with some houses (the ones which have been updated) already reflecting the higher assessment amounts - and others not. |
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