Dept. of Finance Market Values
We just got a notice from the Dept. of Finance stating the “market value” for our brownstone. We just bought the place in November 2009. It’s a 3-family in park slope. We paid $1.695 and DOF has valued it at $1.97. So that’s roughly $300,000 over what we paid (and we paid the asking price)….
We just got a notice from the Dept. of Finance stating the “market value” for our brownstone. We just bought the place in November 2009. It’s a 3-family in park slope. We paid $1.695 and DOF has valued it at $1.97. So that’s roughly $300,000 over what we paid (and we paid the asking price).
The DOF letter includes instructions for what to do if we’d like to dispute this valuation.
My question is: should we? The case we would make would be that it’s worth what we paid, I suppose.
Interestingly the DOF statement also notes a drop in market value from the previous year, 2007 I think, when it had been valued at $2.1 something.
I’m sort of thinking it might be best to let sleeping dogs lie… also it sounds easier.
I’m pretty sure we are paying very low property taxes in NYC in general, so this seems like it may not matter. Maybe there are even reasons having a higher value makes sense.
Advice? Thoughts?
thanks
I know I get the same feeling everytime I look at my paystb and I say too myself ” it can’t be that I have to pay all this money of my hard earned cash to a government that is giving it to homeowners that are underwater.”
To OP: (SP)
I looked up the notice of valuation for your home. You’re not going to be able to get the market value down to 536k, so no tax saving for you if you got it down to your purchase price. Scary how much a person can find out about you just by the trail you leave on a blog. Remind your kids about that when they’re on facebook.
“What To Do If You Believe Your Market Value Is Wrong”: Complete the Request for Review of Property Value form found at nyc.gov/finance. Please note that an incorrect market value might not result in a lower assessment. Your Market Value must fall below $536,000 to impact your assessed value.”
to iranyc,
It’s not a goof. I looked up the notice online, and it spells it out…
“Assessed Value: Finance multiplied your property’s market value by 6% for 1-3 family homes and by 45% for 4-10 unit homes to determine the assessed value. However, your assessed value may be lower than 6% or 45% of your market value because by law your assessed value cannot increase more than 6% per year and 20% over five years for 1-3 family homes. …”
Because of the cap on increases in assessed value, the Effective Market Value (assessed value/6%) is the number that your Market Value must fall below to impact your assessed value.
Likely in OP’s case, as in mine & others, the Effective value is still low enough that requesting a Review of Property Value won’t end up lowering your taxes.
I got my notice of valuation from the DOF, and it had a helpful item that I don’t think was there in past years. It said something like “…your taxes would be reduced only if the market value was less than $xxx,xxx”
For me the market value was about 100k more than a recent appraisal, but that’s still 400k more than the value at which I’d save any taxes, so not worth contesting the valuation.
i’m looking at my first notice of property value and it shows a small decrease in the market value BUT a rise in the assessed value and taxable value. Only part of the rise is attributable to a reduction in exemptions. How can that be? The gobbledygook explanation sets the assessed value equal to 6% of the effective market value and the effective market value equal to the assessed value divided by 6% (well, duh!), but connects neither of those numbers to the market value, which is “estimated…based on recent comparable sales.” Any likely explanation of this apparent goof?
Can’t find ’em, BH. That’s why comps will fall in half from the peak. That’s the point.
And why do they use that number, newsouthsloper? It doesn’t have anything to do with the historical norm, does it?
***Bid half off peak comps***
“Why are you using a 9.5 rent roll multiplier? That’s awfully close to my 10x. You must be delusional”
Because that is what the department of finance uses to asses taxes. Check their website.
BHO,
Please show me brownstone properties trading at close to 10x rents. I’ll be happy to pay a finders fee.
newsouthsloper @ 2:55,
Why are you using a 9.5 rent roll multiplier? That’s awfully close to my 10x. You must be delusional.
***Bid half off peak comps***