As you may have heard, Maplewood Township has just begun the town-wide property tax assessment. This will be completed by the end of the year and will take effect in 2011. Similar to the South Orange home assessment a few years ago, with homes selling for roughly 25% below '05 prices, assessed values have come down significantly. While its not certain whether the revaluation will cause your taxes to be reduced signifcantly, it may be worth filing an appeal this year. When determining taxes, the town allows for 15% above and below the assessed value, which they refer to as "corridors". So for your taxes to be reduced, you need to fall below the low range of the corridor.
To find out if your home will likely win an appeal, you’ll need to know what the minimum or low range market value is for your home. If your home sold for less than the low range market value, it is definitely worth filing an appeal. You can do that by following this basic formula:
Take the current assessed value of your home and divide that figure by .6011 [this number represents the tax ratio (.5227) multiplied by 1.15].
As an example: A Maplewood Home closed in '09 for $605,000. The current assessed value of that home was $577,800. The taxes were $26,925. $577,800 divided by .6011 = 961,238. This number represents the lowest value of a home that would justify the current taxes of $26,000. Since the house sold for 605,000, the range is far below the low range value of $961,238. The appeal on this home was successful and these taxes have come down significantly.
If after applying this formula you think you qualify for an appeal, you will need to submit your application before April 1st. To download an application, go to: www.njactb.org. With your application, you will need to include five “comparables” of recent Maplewood Home Sales within the price range of your home. Some good news - if you win the appeal this year, your new taxes will be retroactive from January 1st! I’ve seen many homeowners have their taxes lowered already this past year, so it’s definitely worth the effort!
If you need help determining the current assessed value and/or obtaining comparables, contact me. I’m always here to help!
I’m very excited to share the news I learned last week at Jeff Otteau’s Real Estate Workshop.If you’re not familiar with Jeff, he is renowned for being the most eminent authority on
New Jersey Real estate trends.His appraisal group has been studying the
New Jersey real estate market for 30 years.
According to Jeff, Maplewood/South Orange Home Sales and other areas of New Jersey stabilized this past June, which more than likely means we’ve finally hit the bottom!It looks like we’re in a recovery market right now. If you’ve been thinking of purchasing a New Jersey Home or selling your existing
Maplewood or South Orange Home and buying a bigger house, you have about a six-month window to purchase at a great price with excellent interest rates.
As we all know, the government has been falsely keeping the interest rates down – but this can only continue for so long.By next year, rates will be up about a point.And while "one percent" doesn't sound like a lot, it translates to a buyer losing 10% of their purchasing power!So the $500,000 home you can afford today will translate to only 450k affordability next year.By 2011, we’ll probably be seeing interest rates escalate up to 7%.
Jeff predicted last week that the First Time Home Buyer Tax Credit set to expire would be extended.Well, he was right.The Obama Administration announced on October 29th that the credit would be extended until April 30th with an expansion to include higher-income and current home owners.The new plan will offer a $6,500 credit to people who have lived in their current homes for at least 5 years.Couples earning up to $225,000 and individuals up to $125,000 would qualify for the break.That’s up from the current $75,000 for individuals and $150,000 for couples.We’ll probably see a surge in the upcoming Spring market as more people feel confident buying and the interest rates stay down.
Pricing is King in today’s Buyer’s market. At the height of the market in Spring of ’05, just about any house would sell within a week, no matter what the condition, and often in multiple bids. A good offer today is one close to the asking price and under contract within 30 days. Right now, Buyers are in the driver's seat. They want the best for the least amount of money. In a market where the supply is greater than the demand, it’s crucial to create urgency and give Buyers a reason to make an offer right away. I advise Sellers to be the best-looking house AND the least expensive. In a recent NY Times blog, I discuss the story of a fantastic house that didn't sell because it was priced too high to begin with.
Sellers that price their homes too high run the risk of pricing themselves out of the market. When their properties don’t sell they reduce them, but then often it’s too late and they end up trying to chase the market. As prices in Maplewood and South Orange have declined on average about 1% a month, the reductions are often not enough.The good news is that the Maplewood real estate market is still thriving, and Sellers who price their homes correctly from the outset are reaping the benefits.
Are You Looking For A Midcentury Home Within A 30 minute Commute Of Manhattan?
Look no further than South Orange New Jersey Homes. The Newstead section of South Orange offers a wide selection of midcentury houses. This style of home has made a huge comeback within the last 10 years as people move towards the desire for an easier life style. The one level, open floor plan of these homes offer just that, and are becoming hugely popular. These homes offer great flow and abundant space; great for entertaining. I have a new listing in the Newstead section of South Orange that is perfect for the person looking for a Midcentury home. This sprawling custom brick contemporary home offers 4 bedrooms, 3.1 baths, nestled amongst mature landscaping with a custom inground pool and spacious patio. An additional In-law suite with a full bath is located in a separate wing on the opposite side of the house. This home is a true entertainer's dream home, offering value, space and privacy.
“The Housing Crisis Is Over”, according to The Wall Street Journal this month! Finally, we have some positive news about the real estate market. While some parts of New Jersey have seen as much as a 30% decline since the spring of ’05, I’m happy to report that the Essex Country rail towns of Maplewood, South Orange, Millburn/Short Hills Montclair, Glenridge and parts of West Orange have only experienced about a 10% reduction, due in large part to train accessibility into Manhattan.
What's The Mood Of Buyer's Right Now? We’ve seen a lot of hesitation over the past year, with many Buyers waiting for the market to bottom out, particularly those who don’t have to buy – first time home buyers. Hopefully this news will boost their confidence. The irony is that now really is a great time to purchase a home. We have not seen both price and interest rate combination this low in many years.
How's The Essex County Spring Market Doing? There’s a dichotomy in the market right now. We have a lot of inventory accumulated from Sellers holding on to old prices. As a result there’s more competition between homes. That being said, we’re still seeing multiple bids in some areas, especially Montclair, Millburn/Short Hills and Maplewood Real Estate. Areas in West Orange that don’t have easy Midtown direct access into Manhattan are taking longer to sell, however the Gregory and St. Cloud sections offering Jitney service to the Midtown Direct train line are more desirable, and thus selling faster.
Sellers Are More Realistic In Their Pricing Right Now. This explains why some homes are selling right away and others are lingering on the market. Homes that are priced right and show well are selling within one month, the average number of days on market for Maplewood, South Orange, Montclair, Millburn and Short Hills' homes. Houses that are priced attractively and are upgraded are selling faster than the ones in need of work. While this has always been true, a few years ago, everything sold quickly, whether it was in need of repair or not. While the well priced homes may be selling faster, it still is a Buyers' market and they're very much in control. We’re seeing that control exercised frequently in home inspection issues. Buyers are asking sellers to address more home inspection items now, and often sellers are giving in, hoping to keep the sale going. Most Sellers now understand more than ever the importance of standing out amongst the competition, and are paying more attention to home repairs, staging and upgrades before they put their homes on the market. When I bought my house in ’02, there were 12 offers on it and a hole in the garage roof! We never asked for it to be repaired because it seemed minor. Today the seller, would in all likelihood be repairing that hole or offering a credit.
Have We Reached The Bottom Yet? With homes now priced more in line with current values, the inventory will start to recede. For all you Buyers out there still sitting on the fence don’t wait any longer. And for the ones who are ready to buy, congratulations, you’re purchasing in one of the best Buying markets in our history!
