WHAT IS A REVALUATION?
Revaluation is the comprehensive examination and appraisal of every property within the municipality for the purpose of fair tax apportionment.
WHY IS THE MUNICIPALITY DOING THIS NOW?
The assessed value of the Municipality currently reflects an average ratio to market value which is substantially lower than the 100% of true value mandated by state law. Some properties are assessed higher and some lower than others. This revaluation will bring all property to the same level.
WHO WILL COMPLETE THE REVALUATION?
The Municipality has retained Certified Valuations, Inc. of Randolph, NJ, a firm with a long history of revaluation and appraisal work.
HOW DOES THE COMPANY CARRY OUT ITS WORK?
The firm will carry out these major parts of the project:
- Examine all recent real estate sales and any that occur during the project in order to establish actual market prices for arm's-length dealings. (Distress sales, sales between family members and certain other types of sales are not included.)
- Inspect the inside and outside of all properties in the municipality in order to develop individual descriptions and records and to establish the basis for value.
- Develop land-value formulas for various parts of the municipality.
- Perform individual appraisals of each industrial and commercial property.
- Analyze the income and expenses associated with all income-producing properties.
- Assign an estimated market value to each property.
- Notify all property owners of the proposed assessed value of their property.
- Meet with property owners, which includes an individual appeal process for those who questions or disagree with the new assessment.
WHEN WILL IT BE DONE?
The work will start as soon as the program is approved by the Director of Taxation. The firm will notify property owners when inspections are about to begin.
ISN'T THIS JUST A WAY TO RAISE TAXES?
No, the revaluation will simply ensure that taxes are apportioned fairly.
WON'T EVERYONES’ ASSESSED VALUE INCREASE?
Just about all assessed value will increase because most property is assessed at less than market value. But the revaluation will not affect the total amount of taxes to be raised.
HOW WILL THIS AFFECT MY TAXES?
Until the revaluation is complete, accurate individualized answers are impossible. However, unless your property is over-assessed or under-assessed, your taxes should experience only a normal change. Of course your taxes will either go up, stay the same or go down. It is very rare that this distribution is 1/3 up, 1/3 down, 1/2 say the same.
HOW CAN I MAKE SURE MY NEW VALUATION IS FAIR?
Toward the end of the project, Certified Valuations Inc. will send you a notice of your proposed new assessed value. Informal hearings will be scheduled so that every property owner can meet with a representative to discuss any question relating to his/her assess value on a one to one basis.
WILL BUSINESS AND INDUSTRY HAVE TO PAY A LARGER SHARE OF THE TAX BURDEN?
The major goal of the revaluation is to assess all property, including business and industry, fair and equitably. By New Jersey constitutional mandate, all properties - residential, commercial and industrial - must be assessed at the same rate. Businesses cannot be assessed at a higher or lower percentage than homes.
HOW ARE VALUES ESTIMATED?
Three approaches are used to estimate the value of properties:
- Capitalized potential net income. This attempts to estimate market value for income-producing properties and is often the most useful approach for commercial, industrial, and apartment properties.
- Depreciated replacement cost. This attempts to estimate the cost of replacing structures less an allowance for depreciation and wear. This is often the most useful approach for special purpose properties.
- Market comparison. This attempts to estimate the value of a property based on sales of similar properties and is often the most useful for residential properties.
WHAT CAN I EXPECT DURING THE INSPECTION OF MY PROPERTY?
The inspector will request permission to inspect the interior and exterior of your home. The inspection will not take more than 10 to 20 minutes of your time.
The field inspectors will show you an official form of identification. All inspectors are registered with the police department and if you have any doubts concerning the inspector’s credentials, do not allow the inspection but contact the Assessor’s office or police to verify the inspector’s credentials.
The inspector will look at every room in your home and record the number of bathrooms and the number, type and location of all other rooms. Fireplaces, hot tubs, type of heating and cooling will also be recorded as well as finished basements and attics.
You will be asked to initial or sign the data collection card. Your signature only indicates that an inspection was made and in no way does it infer that you agree with the data collected. It is at this time that you should review the card and bring any errors to the inspector’s attention.
HOW ARE UNUSUAL CIRCUMSTANCES CONSIDERED?
During the inspector process, you should let the inspector know of unusual problems such as a non-functional fireplace, no heat or cooling in the basement or attic, the condition of the home and any major problems with the proper enjoyment of the property. All items will be considered by the appraisers in estimating the value of your home.
MY HOME IS EXPENSIVELY DECORATED, WILL THIS AFFECT ITS VALUE?
Our inspectors are trained to look at the property as if vacant. While many items of personal property tend to enhance the appearance of the property, we recognize that the furniture, paintings, sculptures, etc. are not part of the real estate. Conversely, a poorly decorated and dirty home will not be given a lower assessed value.
WHAT HAPPENS IF I DO NOT ALLOW AN INSPECTION AND REFUSE ENTRY TO MY HOME AND PROPERTY?
We will have to estimate the value of your home based upon our observation from outside your property, building inspector’s files and existing files in the Assessor’s office. You have every right to refuse entry, however it makes our job much harder.
WHAT IF I WILL NOT BE HOME DURING THE INSPECTION PERIOD?
You may call our office to arrange for an inspection at a mutually agreeable time; perhaps in the evening or on a weekend day.
HOW CAN I HELP?
Please allow an inspection and bring any unique aspects of your property to the inspector’s attention. Drop us a line to tell us about things you may not have thought of during the initial inspection. Tell us about things in your neighborhood that might influence the value of not only your property but that of your neighbor’s. You should send copies of photographs, past inspector’s reports, plot plans, deeds, and any pending or zoning decisions that you may be aware of. Also, any inharmonious uses such as after hours repair shops, loud noises from recreation parks, etc. should be brought to our attention.
WON’T THE APPRAISERS JUST FACTOR UP THE OLD ASSESSED VALUE?
We will be starting our analysis with blank field cards. The purpose of hiring an outside firm is to obtain an independent opinion of value. We will not be influenced by the current assessed value except to note any extraordinary increases or decreases in value compared to neighboring properties. This could be the result of improvements made without the Assessor’s knowledge since the last revaluation.
WILL THE REVALUATION FIRM REPORT ANY BUILDING OR ZONING VIOLATIONS?
Our inspectors will make no determination concerning building or zoning violations. They will record only what they see.
WHY IS IT IMPORTANT THAT AN INSPECTION BE MADE?
Our appraisers will be comparing your home with similar homes which have been sold. The units of comparison are but not limited to square foot of living area, number of bathrooms, finished attics or basements, number of and type of garages, air conditioning, porches of all types, in-ground swimming pools, number of bedrooms, etc.
Each unit of comparison has a value derived from past sales. When all units are added together, an amount deducted for age and condition, and an amount added for land value, an estimate of total value is made.
