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January 29, 2009
NYC-assessed market value
I just opened this year's statement and the market value on our skinny, small house has shot up $298K! It's a disproportionate increase, out of line with the market.
Should I challenge it or does it not matter? Thanks for your help.
Comments
I was just going to make a forum post about this. Does anyone know how they arrive at the assessed market value. My house was valued at very close to what I paid for it so I am wondering if they take that purchase price into account in their figuring. Anyone know?
Posted by: wasder at January 29, 2009 12:40 PM
My House value went down and yet Assesed value went up... How do they do that?
Posted by: remyching at January 29, 2009 12:46 PM
Most likely, it does not matter since the rate of increase in the assessed value (on which your taxes are actually calculated) is capped at 6% per year and 20% over five years.
It is only worth worrying about if your assessed value is already at or near 6% of the only market value and you believe that the market value has increased less than 6% (or decreased).
Personally, the assessed value of my house is less than 1% of the market value, making changes in the market value purely academic.
-SoSlope
Posted by: SoSlope at January 29, 2009 12:59 PM
SouthSloper,
There are lawyers who challenge assessments as their specialty. They are called tax certiorari lawyers. They know which cases have a chance and which don't. A quick phone call to one will get you a real answer to the question. The phone call shouldn't cost you anything.
I'll ask the next question for you. Any references?
Posted by: slopefarm at January 29, 2009 1:03 PM
Remyching,
Since the assessed value of your house is <6% of the market value, the assessed value will keep increasing at 4-6%/year until it reaches that cap.
-SoSlope
Posted by: SoSlope at January 29, 2009 1:03 PM
Our market value decreased by $70,000; our assessed value increased. There's a description on the notice you received describing how the city arrived at the value, and how to challenge the values.
Posted by: vinca at January 29, 2009 1:04 PM
Now now if you enjoyed the values of your homes going up by double didgets in the past years and you enjoyed telling everyone how smart you were in having bout in a overpriced market and you enjoyed raising your poor tenents rents then you know what? Take your medicine now the City budget needs your help
Posted by: hannible at January 29, 2009 1:16 PM
I meant to say my market value not my assessed value. The city notice says my house has a market value very very close to what I paid. Do I take it that I paid a fair price for my house? Or is the city just saying, OK you paid that amount so that is what it is worth market-wise? Slopefarm, do you know the answer.
Posted by: wasder at January 29, 2009 1:38 PM
Brookyln-ites: please don't complain about your taxes. In most cases, your assessed value is far, far below the cap. In Manhattan, the assessed value is typically right at the cap.
Posted by: guest4 at January 29, 2009 1:47 PM
Market value is generally close to what you paid or the comparables on the block. They adjust this every year, but it's irrelevant as your taxes are based on assessed rate, which for most places in Bk are nowhere close to the max. assessed rate.
Posted by: guest4 at January 29, 2009 1:48 PM
Wasder,
Market value and assessed value as done by NYC for tax purposes are subject to all kinds of byzantine formulae. If you know where you stand based on neighborhood comps, that's all you need to know about your real market value. The City's tax records are a parallel universe. Your mileage may vary.
Posted by: slopefarm at January 29, 2009 1:54 PM
I was also questioning how the market value of my home increased substantially when market values are decreasing. The good thing for me is that my assessed value remained the same and since the property taxes are based on the assessed value minus any exemtion value not market value.
Posted by: Chaka at January 29, 2009 1:55 PM
well at least this means that the price I paid in October was a reasonable one, at least vis a vis market conditions in MArch 2008.
Posted by: wasder at January 29, 2009 2:29 PM
Does it feel like you are being cheated and robbed? Does it feel like you are over paying for something that is not worth the amount of money being demanded? Does it feel like you are being stuck up in a bank robbery? Well welcome to the world of the Brooklyn renter, where for years we had to take abuse from greedy money hungry homeowners. This is our moment, our time. Pay or get out!
Posted by: hannible at January 29, 2009 3:08 PM
Ours went up $98,000! Ugh...I dont know if this is a good thing or a bad thing :-)
Posted by: nybk01 at January 29, 2009 3:35 PM
hannible--tell us how you really feel! I for one looked at the figure they quoted and it felt about right.
Posted by: wasder at January 29, 2009 4:15 PM
Mine went up $488,000 on a 6 unit and 1 commercial property. they also stated that they estimate my income to be 130k per year from the property...which is far from that number. Does that play into my tax estimate? If so, is it a large variable?
thanks
Posted by: troll at January 29, 2009 5:10 PM
my market value went down 18%! (I actually thought last years market value was way out of line). Since this value is determined by neighborhood comps and since wasder lives around the corner, he clearly has driven down the value of my home by striking a hard bargain on his house. Oddly my assessed value did not increase at all. Since I am way below the cap on that I would have thought they would have continued to push that up.
Honestly, I can't complain about my real estate taxes.
Posted by: Putnamdenizen at January 29, 2009 8:47 PM
Hannible, it is unseemly for you to be cheering people's taxes going up. You have no other knowledge than everyone else regarding general price movements, and those movements are opposite the trend in assessed values.
It is like, and it would be equally distasteful, for other people to cheer if your rent goes up. I sincerely think you should be ashamed and mind your business.
Spelling correctly in your histrionic response is optional.
Posted by: corolla at January 31, 2009 1:57 AM
You see Corolla for years I lived in a part of Brooklyn, where all the home owners did was cheer at the passing of every month for it ment higher home prices and therefor a bigger reason to ask for a rent increase. Alot a seniors, families with children and just common hard working citezens were priced out of their childhood neighborhoods out of pure greed. And now that the card have flipped people like myself are suppose to have pity for the greedy? Maybe, but remember what goes around comes around. I hope you liked my spelling I usually don't proofread I write out of the momential instinct.
Posted by: hannible at January 31, 2009 7:35 AM
I liked your spelling.
Posted by: corolla at January 31, 2009 10:54 AM
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