Introduction
In my first blog, I suggested every homeowner should review their property taxes and appeal them if they seem unfair.
In the early to mid 2000s, it was difficult to appeal property taxes and get a reduction, primarily because home prices were on the rise, and using recent sales would actually increase your assessment. However, the big picture was that home values were increasing, and property owners were happy.
Then the bubble burst. No surprise, 2010 saw a large number of property tax appeals across the country, even higher than 2009. One realtor estimated about 10% of homeowners in Hoboken filed their appeal before the April 1 deadline.
Basic Rules
The rules are not difficult. You cannot complain your taxes are too high compared to your neighbor. You should say 3-5 similar houses in your neighborhood are worth say 15% less than yours, therefore your assessment should be lower. The sales needed to be in the 12 months prior to 10/1/09. You cannot fight over pocket change--market value too close to assessed value will result in automatic denial of your case.
This year I received 3 mailings from realtors or appraisers who claimed they could reduce my property taxes. If they could do so, so could I. There was no magic here, no secret comparative sales. I am confident of my "Google" and Excel skills. If you are as well, I encourage you to at least try it yourself (or use a software). An expert will charge either a flat fee ($500) or a percentage of savings. A formal appraisal would cost $300, and another $150 for the expert witness to appear in court. You could use the appraisal from your refinance, but it would be tough to get that "expert" to appear in court. Anyway, I found a Hoboken-based blogger was posting helpful hints on her website. Some realtors were doing the same. I found most of their tips to be accurate and the task did not seem daunting.
Kathy Zucker's Blog
Remax Realtor Brian Murray's Blog (also includes a calculator)
Hudson County Tax Board
Hoboken Tax Assessor
Sal Bonaccorsi
Hours: M - F, 9 am - 4 pm
Phone: (201) 420-2024
Fax: (201) 239-9847
First Steps
I asked a lot of questions, and got a lot of answers. Many of these answers came from the Hoboken assessor's office and the Tax County Board. The rest of the answers came from the above mentioned blogs. After about 5 hours worth of work, I submitted my appeal with a compsheet in March. I did it alone this year, without any "expert" or software (disclaimer: I used to create another type of "comps" for a living, so my case is not typical). I received a mailing in early May stating a court date has been scheduled.
Next Steps
I was a bit nervous about the next steps as I had too many questions unanswered. I knew last year, several Hoboken homeowners had settled, yet no offer was in my mail.
The court date was approaching, and I didn't have any definitive answers, so I decided to call the enemy (I mean counterparty). Here are the answers that you have been waiting for.
In my first blog, I suggested every homeowner should review their property taxes and appeal them if they seem unfair.
In the early to mid 2000s, it was difficult to appeal property taxes and get a reduction, primarily because home prices were on the rise, and using recent sales would actually increase your assessment. However, the big picture was that home values were increasing, and property owners were happy.
Then the bubble burst. No surprise, 2010 saw a large number of property tax appeals across the country, even higher than 2009. One realtor estimated about 10% of homeowners in Hoboken filed their appeal before the April 1 deadline.
Basic Rules
The rules are not difficult. You cannot complain your taxes are too high compared to your neighbor. You should say 3-5 similar houses in your neighborhood are worth say 15% less than yours, therefore your assessment should be lower. The sales needed to be in the 12 months prior to 10/1/09. You cannot fight over pocket change--market value too close to assessed value will result in automatic denial of your case.
This year I received 3 mailings from realtors or appraisers who claimed they could reduce my property taxes. If they could do so, so could I. There was no magic here, no secret comparative sales. I am confident of my "Google" and Excel skills. If you are as well, I encourage you to at least try it yourself (or use a software). An expert will charge either a flat fee ($500) or a percentage of savings. A formal appraisal would cost $300, and another $150 for the expert witness to appear in court. You could use the appraisal from your refinance, but it would be tough to get that "expert" to appear in court. Anyway, I found a Hoboken-based blogger was posting helpful hints on her website. Some realtors were doing the same. I found most of their tips to be accurate and the task did not seem daunting.
Kathy Zucker's Blog
Remax Realtor Brian Murray's Blog (also includes a calculator)
Hudson County Tax Board
Hoboken Tax Assessor
Sal Bonaccorsi
Hours: M - F, 9 am - 4 pm
Phone: (201) 420-2024
Fax: (201) 239-9847
First Steps
I asked a lot of questions, and got a lot of answers. Many of these answers came from the Hoboken assessor's office and the Tax County Board. The rest of the answers came from the above mentioned blogs. After about 5 hours worth of work, I submitted my appeal with a compsheet in March. I did it alone this year, without any "expert" or software (disclaimer: I used to create another type of "comps" for a living, so my case is not typical). I received a mailing in early May stating a court date has been scheduled.
Next Steps
I was a bit nervous about the next steps as I had too many questions unanswered. I knew last year, several Hoboken homeowners had settled, yet no offer was in my mail.
- Given the number of appeals, had anyone who appealed their Hoboken property taxes received a settlement offer from the city in 2010?
- How many days before the court date was the offer of settlement?
- Was it a good enough offer to settle?
- What happens if you settle?
- Once it goes to court, does it mean win OR lose? Or is it a compromise?
- How long does the hearing last? How about the entire court visit?
The court date was approaching, and I didn't have any definitive answers, so I decided to call the enemy (I mean counterparty). Here are the answers that you have been waiting for.
- Yes, settlements are being offered if you ask for them. If you call 1-2 days before your hearing, the Hoboken assessor will let you know if a settlement will be offered.
- Unless you call, you will not hear from the Hoboken assessor (in previous years a letter may have been sent a week to 3 days prior).
- It depends. In my experience, the Hoboken tax assessor is a reasonable and intelligent person. The offer of settlement would depend on how strong your case is (i.e. robust comps, illustrative photos etc.) and how your persuasion skills are. The settlement could be 100% of what you ask for.
- If a settlement is reached, and you are satisfied, I suggest you walk over to City Hall and sign a form (instead of waiting in the mail). You will get a copy stating what your assessment is and the reason for your assessment (e.g. "reflects market value"). You do not need to appear before the court as the form will be presented by the Hoboken assessor. Tax reduction will be applied to your November (4Q) bill.
- The Hudson county tax board said given the number of Hoboken cases, you can expect to wait 1-2 hours (several people may have been scheduled at the same time). Everyone will be heard.
