"Do I Need an Appraisal For My Assessement Grievance?"

I've been frequently asked the question: "Do I need a real estate appraisal for my assessment grievance?"

The New York State form RP-524 (Complaint of Real Property Assessment) asks for 4 pieces of "evidence" for your reduction based on market value:


1. Previous sale information
2. Current Listing Information (have you tried to sell your house and for how much).
3. Comparable sales in the neighborhood.
4. Certified Real Estate Appraisal performed on the property.


You must offer AT LEAST one of these pieces of evidence. As you can see, an appraisal counts for a large part of the consideration, more if there isn't any convincing previous title transfer information, current listing information or comparable sales included in the RP-524 application. Obviously, you want to give them as much information as you can and give yourself the best chance in bringing your grievance to a conclusion that is satisfactory to you.

Adding a NYS Certified Real Estate Appraisal to your grievance package gives you the best chance at reducing your assessment by presenting the strongest case possible with as much evidence as possible.

I always find this question kind of akin to saying "I know I aced the multiple choice section of the test, so why should I bother with the essay portion?".
It's always best to not take any chances, do the best you can and TAKE THE ENTIRE TEST if you want to maximize your chances at a decent grade.

All that being said, there ARE some cases where an appraisal might be "over kill", but for the most part, go to your assessment grievance "loaded for bear" whenever it's rational to do so.

Rob Honders
WWW.PropertyTaxesTooHigh.Com

Have you tried to sell your house for what your assessor thinks it's worth?

The Office of Real Property Services has a website with guidance as to how to file an assessment grievance. It's a typically obtuse, wonkish government paper but here is the money shot for many people:

From "SECTION ONE: IS YOUR ASSESSMENT FAIR?"

"...the market value listed on the roll should equal roughly the price for which you could sell your property."

And

"Market value is generally defined as the price a willing buyer would pay a willing seller for a property in its present condition with neither buyer nor seller under pressure to act (such as career relocation, death of a family member, divorce, etc.)"

Have you listed your property for sale recently? No buyers? Check to be sure your assessment is based on a market value AT LEAST equal to what you tried to sell your house for. How could somebody argue that your house is worth more than what you just unsuccesfully tried to sell it for?

Check out THESE PEOPLE in Dutchess County who have a slam dunk case for assessments 30% lower than what they are.

The Extent of Over Assessment in Dutchess County, NY

I've been a Real Estate Appraiser in the Mid Hudson Valley Region of New York State since 1990. I have never seen assessed values and market values so far apart. EVERYONE in Dutchess County should check out what their assessment is and ask themselves: "Could I sell my property for that?" If the answer is "no", you are over assessed and need to prove that to your local assessor. The following is a list of CURRENTLY ACTIVE listings (homes for sale) in the Poughkeepsie, NY area of homes that are CLEARLY AND DEMONSTRABLY over assessed:

72 DELAFIELD ST. Poughkeepsie, NY. This house is currently on the market for $118,000 BUT IS ASSESSED BASED ON A MARKET VALUE OF $175,000. This house is currently over assessed by 32 percent!

250 MANSION ST. Poughkeepsie, NY. This house is currently on the market for $149,900 BUT IS ASSESSED BASED ON A MARKET VALUE OF $225,000. This house is currently over assessed by $75,000 or 33 percent!

34 SMITH ST. Poughkeepsie, NY. This house is currently on the market for $179,700 BUT IS ASSESSED BASED ON A MARKET VALUE OF $245,000! This is an over assessment of $65,300 or 27 percent!


CHECK TO BE SURE YOUR ASSESSMENT IS REASONABLE IN LIGHT OF THE CURRENT REAL ESTATE MARKET! I did not look very hard for these examples.

Call Rob of Appraisal Solutions at 845-797-3557 if you would like assistance in figuring out if you are currently fairly assessed or visit our website at:

www.PropertyTaxesTooHigh.Com

Rising Assessments, Falling Values

Property assessments are at all time highs at the same time the value of the real estate they are based on are falling. Upstate New York prices can only be described as "soft" at the current time, but all indications are showing that the decline in real estate could be a doosie this time.

As the value of real estate has increased, government agencies hungry to participate in the wealth being created by the credit induced real estate bubble, began to re value (re-assess) the properties in their taxing jurisdictions to more closely match the current market value, and thus increasing the taxes. The problem is, a lot of these assessments were done a year to 2 years ago, at the height of the real estate market frenzy. With real estate demonstrably falling, will taxing jurisdictions revalue their assessments down? Not soon enough you can bet.

What you can do about it.

The first thing you need to determine is what you are currently assessed at. You may do this in a variety of ways, up to and including calling up your local Assessor and asking them. They should be able to give you what your current assessment is AND what the MARKET VALUE is that the assessment was based on. Make sure you understand the difference between "Market Value" and "Assessment". An Assessment for real estate taxing purposes is a function of the determined Market Value. Taxes are usually based on a RATE per $1,000 of assessment. For example, if you have an assessment of $100,000 and the tax rate per $1,000 is $7, your taxes would be $700 per year. Your rate per $1,000 should include school taxes (NY and other states)and property taxes.

Where do they get the $100,000 Assessment?

The assessment was "based" on a determined market value and a RATIO is evenly applied to all properties. Suppose the $100,000 Assessment is based on a $200,000 market value. This would indicated that the assessment ratio is 50% of market value.

Thus:

(Market Value X Assessment Ratio) X Tax Rate Per $1,000 = YOUR TOTAL YEARLY REAL ESTATE TAXES.

In the above example, ($200,000 x .50) X $7 = $700

Fair enough, right? If your neighbor lives in substantially bigger house, larger yard etc and has a market value of $400,000, he would be paying $1,400 in real estate taxes.

In the above equation, their is only ONE variable that you may argue with: Market Value. Within this variable are two arguments available to the homeowner:

1. Assessment is too high because the information that the assessor has is incorrect. Factual error like: Error in room count, square footage, property size and usability, bathroom count etc. This is usually and open and shut case for the homeowner if they can prove the error.

2. The market value is incorrect based on CURRENT MARKET DATA. This is where a NYS Certified Real Estate Appraiser should be hired. If your home is valued lower than what the assessor's indicated market value, you have strong evidence for a reduction in assessment.