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All Forum Posts by: Robert McCormick

Robert McCormick has started 8 posts and replied 28 times.

Quote from @Alecia Loveless:

@Robert McCormick In theory if the whole town was reassessed then everyone’s valuation would have gone up because values have gone up in the last 3-4 years which is probably how long it’s been since your town did their last valuation.

That being said while your taxes will likely go up some they should not double because since everyone’s valuation went up everyone’s taxes will go up some but they won’t go up enough to double because the town shouldn’t have doubled their budget although they might have spent more money this budget year therefore needing to raise more taxes this year than last year.

My town just did the same and my valuation went from $139,000 to $339,000 and my taxes from $2300 to about $3800. New Hampshire where I live raises all of its school taxes from its property taxes and since where I live has such a small number of people we pay a disproportionately high percentage of property taxes. If you go to the Southern part of the state a $1M house might only pay $3800 in property taxes same as my $339,000 house.

@Alecia Loveless According to the tax records online for my property it appears this hasn't been reassessed in 10+ years (which seems a bit excessive). However, you raise a good point. I did notice when looking at most other properties assessed on the appraiser's website that they have all significantly increased (some doubling) and found on average the tax assessment for each property went up about 1.77x its previous assessed value.

I found the website also provided a "tax impact" spreadsheet tool for the 2024 year and I ran my property through it and found it should only increase my taxes by less than 1k on an annual basis for 2024. (around 5,047 annually for 2024 based on their calcs)

That is comforting to find out in the short term and this does seem more logical. I'm going to continue to gather more info as I go and hopefully will be able to project out the taxes in the near future for the subsequent tax years. 

 Thanks for the insight!

Quote from @Brad S.:

@Robert McCormick

I quickly looked up some info for Sussex County yesterday and was going to post it here, but then realized that was for Sussex County, DE, so, obviously not applicable.

Anyway, it seems like you already found some info on the appeals process. I did find this very helpful info from Sussex County, NJ, that I encourage you to review. I looked it over briefly, but it seems to be pretty detailed on their methodology and includes really helpful tips in the front pages. It is titled 2024 Tax Appeal Package. I'm guessing you saw it, but here it is just in case.

https://www.sussex.nj.us/documents/taxboard/2022/2022-tax-ap...

Also, I suggest possibly contacting an tax appeal company prior to talking with the Assessor. They may be able to provide some quick and free guidance of questions to ask the Assessor when you speak with them. And per the Tax Appeal Package, an Expert Witness needs to be qualified and approved by the Board, but read all that in the Appeal Package.

Good luck and let us know how it goes and if you need any guidance.

Thanks for providing, this package looks like an extremely useful resource that will come in handy. I think it's safe to say I have some homework to do, but will definitely seek out an expert in my area to help with the process.
Quote from @Henry Clark:

I prefer to gather info up front versus waiting.  Your meeting or call will be more beneficial.

When you got your new assessment there would be a letter telling you the time period to challenge.  If you don’t have that letter then ask the city office. 

Ask that same city person for the new and the old tax levy break down.

Get with a local real estate agent to walk you thru the tax calculation and exemptions so you understand how it is calculated.

Look online at your property on the city’s tax GIS map. Look at the recent valuation and tax history in your property. See if there have been any major valuation or tax changes.  Find out why.  

Appraisal.  
Generally the cost approach will be lower than the comp approach.  Ask them for the cost table they used.   Our last assessment used a table spanning 25 years inflation adjusted.  But cost have spiked significantly over the last 3 years.  But still would be lower than Sales comp which is based on recent sales.

Show pictures here and to a local realtor. Is the basement finished?  What is the size of the lot compared to others in the neighborhood? How many bd/br compared to neighborhood?   What is your lot?  Culdesac, end of a T, entry way to a subdivision, speed limit, train stations, ranch/split level/ 2 story etc, etc etc.  

Something is wrong. No way $4,000 in taxes for a $100,000 house.  What is the rental rate? 

 On the GIS tax map look at some other properties very very similar to yours.  Lot size, sq ft, bed bathroom, style, etc.  What are the pre and post valuations and taxes?

You can use google street level.

I checked the borough website and found the application for appeals will be available starting 2/1 and the appeals must be filed by 5/1 for revaluations.I also found the tax levy history up to 2021 on the website, but no more recent data so this can be something I find from the city.

I plan to reach out to a 3rd party appraisal company after my phone meeting next week to help with my appeal, but reaching out to a local real estate agent in the area sounds like another good idea/resource to use too.

I currently live in the house as my primary residence (plan to rent out when moving out in next couple years), but the median rent for a 2 bed,2 bath in my area currently rents out for around ~2300/mo. conservatively speaking. Property taxes in NJ are high and the draw to buy in this county was lower taxes vs neighboring counties which are closer to NYC.

I appreciate all the input and help and feel I definitely have a good jumping off point to work towards a hopefully successful appeal.

Ahh ok gotcha, makes sense. I will be sure to ask if they used a sales comparison approach and verify why not if they didn’t.

The property is in Sussex County,NJ. Specifically in Hopatcong, NJ.Yes, it is a single family.

Hi @Brad S.

Thank you for the thorough advice. Contacting an outside appraisal company that deals with tax appeals, seems like it may be my best option for me. I will need to figure out when the window to appeal is, and I plan to ask this in my meeting next week.

I obtained a "property record card" via email from the town today which details their analysis. It appears they used the a "Residential Cost Approach" rather than a comparable sales one, so I'm curious if they gathered comparable sales data at all. Would I still be able to appeal this using comparable sales,even if they used a cost approach to value the property? 

@Jonathan Bock I'm not sure if my whole county was reassessed, but I do know the whole town was. Also, an appraiser was sent to my house over the summer and briefly walked the property so I don't think AI was used for this reassessment value.

I have an informal meeting scheduled for next week w/ the appraisal company for more information how they arrived at the value and I requested a copy of the property record card from the town as well.

Thanks for the reply Henry, I plan to make a meeting with the assessor this week.

How would I know whether or not I have a baseline home exemption?

Also, would the assessor be able to provide me with the levy rates? If not, who or where could I find these rates?

The current tax assessment value of my property is $119,700 and I pay $4,188.30 annually in taxes. (2023 tax year)

My house was recently revalued by an appraisal company with a 2024 assessment of $254,000. Does this effectively mean my annual tax bill will more than double to be roughly $8,887.45? 

If I wanted to challenge this assessment to argue the assessment should be less, would the best route to take essentially run a sales comparison analysis of similar homes sold in my neighborhood around the time my house was assessed?

If anyone could offer any help on the subject, or can possibly point me in the right direction towards someone who could help, I would greatly appreciate it!

Post: Seasoning Requirements for Gift Funds (FHA vs Conventional)

Robert McCormickPosted
  • Homeowner
  • Sussex County, NJ
  • Posts 29
  • Votes 14

Hi @Joe Splitrock,

Thanks for sharing the HUD doc, I'll be sure to bookmark this so that when I find a property I can refer back to it. I do understand that the gift implies no re-payment what so ever and will be sure to make that crystal clear before I were to accept any type of gift.

I consider myself extremely fortunate to have a family member who would be so generous to even consider gifting any money at all. I'm not relying on these funds by any means, and my plan has always been to fund the deal myself. I would only seek out this option as a means of a competitive advantage in my high cost of living area to get started. Thanks for your response, I appreciate the feedback.

Post: Seasoning Requirements for Gift Funds (FHA vs Conventional)

Robert McCormickPosted
  • Homeowner
  • Sussex County, NJ
  • Posts 29
  • Votes 14

Hi @Jeff Shumway,

Thanks for clarifying, this really clears things up and I appreciate the help!