County site assessed value on Land- is this accurate?

Question

I just bid and won a New Jersey Tax Lien for a 1.5 acre piece of land next to an owner primary home parcel. The county site has an assessed value of the land over $100,000. The owner’s parcel next door is assessed at $200,000.

Is it necessary to check that assessed value by another method? Should I contact a local realtor to check it out? What other ways can I check this?

I know it’s too late and I probably should have asked this question before buying the lien. If anyone has ideas and/or comments on my purchase - please feel free. I paid a few thousand for the 1.5 acre land.

Thanks!

Lou Gonzales · Answer

Check with your recorder of deeds office, give them the pin # they should be able to tell you if its a buildable lot or not. Some times developers after building have partial parcels they don't use because they are not big enough to be zoned as buildable. But even though they can't build on them, they have to be assigned a pin # so you must do your due diligence.  Good luck,

Account Closed · Answer

@Albert Stancato

Thank you Albert! I did not overbid luckily. I will definitely giving zoning a phone call.

Account Closed · Answer

@Allan I meant zoning not assessor’s office

Account Closed · Answer

@Allan Szlafrok

Thanks Allan. I’ll call the assessor’s office to check.

Account Closed · Answer

@Chris Seveney

It’s a tax lien I purchased, not the actual land

Account Closed · Answer

@Chris Seveney

@Bruce Lynn

I wish I could post a photo here... basically it’s not land locked, it appears to be flat land and not in a flood zone. It appears to be surrounding by parcels with homes valued from $200k-400K.

The parcel of land is in Absecon, NJ. I guess I need to get a hold of a seasoned realtor to help me look in person and do an assessment.

Thanks for your help

Account Closed · Answer

@Bruce Lynn

So if this was site was local to me, I would go into my assessor’s office and ask if land is buildable or has any known issues.

Unfortunately it’s out of state. What are other ways of checking out the assessed values?

Albert Stancato · Answer

If I understand correctly, you purchased the certificate, and have not been yet awarded the deed. My research on New Jersey is that you have two years for the current owners to redeem.

If I correctly understand your situation... Here would be my moves and research. What is the zoning on the property? Most people assume local county offices are off-limits. Call the county, ask them the zoning and for them to interpret the details. As don't consider getting a zoning change -- Too risky!

As others stated here, don't ever fully trust the assessor's value. That is strictly for Ad Valorem tax purposes, and don't trust Zillow. I am a Realtor who does all my own research. You need to talk to a Realtor for the best use and value.

Indiana has a bailout option which I would research in NJ. We are an overbid state. We bid above the taxes which goes to the property owner if redeemed. Here, in a worst-case scenario (Property Burns to the Ground) prior to the redemption period, I can self-redeem. I lose the taxes paid but recoup my overbid. If that is possible there, wait to see if the current owners payout. Otherwise, you have an escape to prevent being the next owner of an empty lot.

As an avid student of the certificates in Indiana, NEVER buy a property you can't physically visit. I drive and comp every property before I bid. Even then I find problems. I have a property currently which I will make money on, but has roofing, foundation and mold problems. I have driven by properties which look great from the road but was collapsed in the rear of the home, and watched uneducated bidders waste their money on a property which will be condemned.

Hope this helps.

Bruce Lynn · Answer

In my part of the world we like to pay about 20% of the final value for the land part of a land/house deal.  So $200,000 house final value we would typically not want to pay more than about $40,000 for the land....double that for $400,000 house.  Every neighborhood is different though.  In very expensive areas, then land might be up to 1/3 of the final value.  One other thing you should think about is the age of the surrounding houses and if someone would want to still build there.  Some neighborhoods builders scramble for land....in others they may not want to build a new house in the middle of a bunch of older ones.

Allan Szlafrok · Answer

@An Lam Don’t worry about the assessed value it could be way off. Just make sure that it’s a buildable lot and has road access. The town zoning department should have the answers to that. The good news is the overwhelming amount of tax liens wind up being paid off so you’ll probably be fine. Just be more careful next time.

County site assessed value on Land- is this accurate?

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