Blog :: 02-2019

It's Tax Appeal Time – What You Should Know

“Should I appeal my tax assessment?”

As the April 1st tax appeal deadline approaches, that’s the question du jour.

Town-wide re-valuations are done every 5 to 10 years in an effort to fairly distribute the tax burden across all property owners according to the value of each property. However, sometimes the system fails. If your home was measured incorrectly or if an extra bathroom was inadvertently added into your assessment, you may be paying more than your fair share in real estate taxes. 

Over-assessment can also be the result of a neighborhood that declines in value relative to other neighborhoods, or a shift in buyer preference for a certain style of house. If you believe you’ve been assessed unfairly, you have the opportunity to challenge your assessment, and this is especially important to do if you’re planning on listing your house soon.

According to Jeffrey Otteau, one of New Jersey’s most respected appraisers, there’s not only a direct relationship between an over-assessed house and its selling price, there’s even a rule-of-thumb calculation you can apply to determine how much it will affect your selling price.

Otteau says that when selling, a home’s value is reduced by 7.5 times the excess valuation. So, for example, if most of the 1,800 SF, 2-Bath houses in the area have yearly taxes of $16,000 and the taxes on your 1,800 SF, 2-Bath house are $18,000, all other things being equal, that additional $2,000 translates to a $15,000 reduction in value in the marketplace.

The key in evaluating your tax burden is understanding how your home – and assessed taxes – compare with similar homes/taxes. I’m always happy to meet with sellers a year (or more!) before they put their house on the market to determine whether it’s worthwhile to challenge their current tax assessment. Call or text: 973-809-5277  

Six Ways to Take a Prospective New Town for a Test Drive

You research the school system. You collect the train schedules. You drive around the neighborhood after an open house. 

Buying a house means buying into a community. So, of course, information about schools and transportation is important. However, a big part of what most of my clients are looking for is a particular vibe. And in my opinion, vibe needs to be evaluated firsthand. 

Here are my 6 favorite suggestions for taking a town for a test drive. Feel free to post your own in the comments!

1. Take a walk.

When you drive through town with an agent, they tend to take you through the nicest neighborhoods. So, if you’re looking at a particular house, in addition to circling the neighborhood, google directions to a nearby restaurant or school – and walk to it. Beyond getting a feel for the friendliness of fellow pedestrians, you’ll notice things that you’d never have access to inside your car.

2. Hang around after school.

Whether it’s the vibe of the school's neighborhood, or what your new neighborhood feels like when school gets out, you’ll get plenty of information about what your child’s after-school experience may be like. 

3. Take an exercise class.

Or a yoga class. Or visit the library. Or a church. Or a temple. Or the senior center. If there are things you love to do, take the opportunity to see what it’s like to do them in a new town. Obviously, walking into the Montclair YMCA was a different experience the first time I showed up there decades ago than it is now. I didn’t know anyone and, in fact, I got lost. But even then, the Y had an easy, welcoming vibe that made me feel instantly comfortable.

4. Go to the grocery store.

I spent a lot of time in the supermarket when I was raising my family. If that sounds like you, pop in and see what your home-away-from-home will feel like. Montclair has plenty of grocery options – I’m happy to guide clients to the 2 or 3 destinations that seem most right for them.

5. Take the train (or bus) in and out of town.

I have clients who do this as a matter of course – executing their entire door-to-door commute from a prospective neighborhood to experience it in real time -- and also to see what it will feel like. 

6. Check out the Saturday night scene.

Montclair has always been something of an arts and entertainment hub, a destination for people all over northern New Jersey. But there’s no better way to know if it will suit your own entertainment needs (or, at least, many of them) than having a meal, getting a drink, catching a movie, listening to a band. Meander down Bloomfield Avenue and see what speaks to you. There are plenty of restaurant options where reservations are not required.

Getting a clear feel for a town or a neighborhood helps buyers become more confident in their purchase. I regularly tell clients: You can always change a kitchen or an entryway – but you can’t change what a town feels like on a cool spring morning or after a quiet snow.

To me, taking a town for a test drive provides a buyer with more options. You may read things about Montclair or Glenridge or South Orange or Verona, but until you experience the town’s vibe, you won’t have information from the most reliable source: you. 

If you want some more ideas about how to test drive a town, don’t hesitate to call me: 973-809-5277

Photo: Montclair YMCA Large Pool