!["Masterbeat_Gossip_125x125"]("http://web.masterbeat.com/linkshare/MBgossip_125x125_50k.gif")
By looking more strongly into the matter of the tax assessment process, you will be able to discern if your property taxes are correct. There is no other way. This also makes the tax assessors more accountable and the entire system will become fairer for everyone. People are challenging their property tax assessment. After all, a property tax assessment is only an guesstimate of value that should be double checked by you.
Tax assessors rarely value a house. The job is hired out on a bid basis to professional area blanket appraiser businesses who find the sales value for the houses in a given neighborhood.
The blanket appraisal and appraising party has to earn a return on their per home bid charge and have to allocate a minimum amount of physical time spent per valuation. They blanket neighborhoods and make their valuations rather quickly because of money and time restraints. Errors often occur. Consumer Reports says the error rate equals 40%.
To compound the problem, the market value of a house is divide by a sales ratio and that number is given as the assessment. of property assessments depends on the sales ratio. This can be called, dependent on the jurisdiction, assessment level, director's ratio, the average ratio, the common level of 100% of true value, RAR (residential assessment ratio) or the equalization rate (which may not always be equivalent to the sales ratio).
WHEN ASSESSED VALUE IS USED, THIS IS THE FORMULA FOR MARKET VALUE: The retail cost of a property = the "assessed value" that the county tax assessor came up with DIVIDED by the sales ratio. That looks like smoke and mirrors to a lot of individuals.
It is easy to get snowed by this price approach and get confused. Many don't know what the valid valuation the town placed on their home is.
Take for example, if the sales ratio for an area is pegged at 70%, a $500,000 dollar home should be assessed at $350,000. So, if the homeowner sees that their home is assessed at $420,000 he/she might be thinking they are getting a great deal, but in reality they are getting bilked. Assessed value nomenclature muddies perception.
Tax assessors rarely value a house. The job is hired out on a bid basis to professional area blanket appraiser businesses who find the sales value for the houses in a given neighborhood.
The blanket appraisal and appraising party has to earn a return on their per home bid charge and have to allocate a minimum amount of physical time spent per valuation. They blanket neighborhoods and make their valuations rather quickly because of money and time restraints. Errors often occur. Consumer Reports says the error rate equals 40%.
To compound the problem, the market value of a house is divide by a sales ratio and that number is given as the assessment. of property assessments depends on the sales ratio. This can be called, dependent on the jurisdiction, assessment level, director's ratio, the average ratio, the common level of 100% of true value, RAR (residential assessment ratio) or the equalization rate (which may not always be equivalent to the sales ratio).
WHEN ASSESSED VALUE IS USED, THIS IS THE FORMULA FOR MARKET VALUE: The retail cost of a property = the "assessed value" that the county tax assessor came up with DIVIDED by the sales ratio. That looks like smoke and mirrors to a lot of individuals.
It is easy to get snowed by this price approach and get confused. Many don't know what the valid valuation the town placed on their home is.
Take for example, if the sales ratio for an area is pegged at 70%, a $500,000 dollar home should be assessed at $350,000. So, if the homeowner sees that their home is assessed at $420,000 he/she might be thinking they are getting a great deal, but in reality they are getting bilked. Assessed value nomenclature muddies perception.
About the Author:
Housing prices remain easing off and there is no indication yet of an uptick, yet most Americans are seeing a rise in the cost of their property taxes. If you sense that there is room for an appeal, considering the steep error rate in assessing value by assessors, it is only sensible and sound thinking that you appeal your property tax.
0 Comments:
Post a Comment