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Ensuring Accurate Property Appraisals for County Tax Disputes

Learn to identify common errors in property appraisals for county tax boards and courts. Discover key factors affecting appraisal accuracy and methods to validate adjustments. Gain insights into court cases and expert opinions to enhance appraisal credibility.

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Ensuring Accurate Property Appraisals for County Tax Disputes

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  1. DISSECTING AN APPRAISALFOR COUNTY TAX BOARD AND TAX COURT

  2. COUNTY TAX BOARD SIMPLE ERRORS TO LOOK FOR WRONG DATE OF VALUE WRONG INTENDED USE TYPO’S & GRAMMATICAL ERRORS INCORRECT APPRAISAL LICENSE

  3. MAIN REASON FOR CTB APPRAISAL ERRORS • HOMEOWNERS USING PRE-EXISTING APPRAISALS • COST CUTTING • MASS PRODUCTION

  4. WRONG DATE OF VALUE

  5. WRONG INTENDED USE

  6. Incorrect License • RA – LICENSED RESIDENTIAL • Can appraise Non-Complex 1-4 Family Properties under $1,000,000 in Value and/or Complex 1-4 Family Properties under $250,000. • RC – Certified RESIDENTIAL • Can appraise 1-4 Family Properties regardless of value

  7. SALES COMPS – WHAT TO LOOK FOR • CHECK FOR ESTATE SALES, BANK SALES, OTHER DISTRESS FACTORS • CONFIRM SQUARE FOOTAGE WITH YOUR RECORDS • REVIEW MLS LISTING AND CALL A REALTOR TO GET EXTRA INFORMATION

  8. ADJUSTMENTS TO QUESTION • GROSS LIVABLE AREA -How did they arrive at $/SF Adjustment? -High end homes being adjusted at $50/SF – Something to look at • VIEW AND/OR LOCATION • Very subjective categories, almost net opinion if not supported

  9. STATE TAX COURT

  10. GREENBLATT V. ENGLEWOOD • Appraisers Opinion only as good as the data relied upon. • “Mere naked assertions as to dollar amount adjustments do not carry the day” • “An appropriate value and tax assessment, can only be deduced when there is sufficient substantial and competent evidence in the record to support that determination” (Hird v. Garfield, 87 N.J. Super 65)

  11. GLEN WALL V. WALL TOWNSHIP • An expert should be expected to support his opinion with as much documentation as necessary, but within realistic and practical limits. Courts should always be mindful of the time and money both taxpayers and municipalities must spend litigating these actions. • A Single Family Homeowner of a $500,000 home should not have to spend $7,500 on an appraisal to overcome the presumption of correctness.

  12. GREENBLATT & GLEN WALL – WHAT TO DO? • APPRAISERS MUST SHOW THE WHY’S AND WHEREFORE’S OF ADJUSTMENTS • “MY EXPERIENCE” IS NO LONGER A VALID ANSWER FOR HOW ONE ARRIVED AT AN ADJUSTMENT • HOWEVER, EXPERTS SHOULD USE THEIR EXPERIENCE AND EXPERTISE TO FORMULATE THE BASIS FOR AN ADJUSTMENT!

  13. Backing up Adjustments

  14. METHODS TO BACK-UP ADJUSTMENTS • Marshall & Swift Cost Data • Gross Livable Area • Bathrooms/Kitchens/Finished Basements/Garage Bays/Decks/Pools • Paired Sales/Leases • Very Hard to Find • Great Indicator for Adjustments if Found • Must Show Something or Will be Net Opinion

  15. HARDEST ADJUSTMENTS TO JUSTIFY

  16. Verification & VBV Realty v. Scotch Plains • VBV Realty, LLC v. Scotch Plains refers to N.J.S.A. 2A:83-1 which states: “in any action or proceeding in the Tax Court, any person offered as a witness in any such action or proceeding shall be competent to testify as to sales of comparable land, including any improvements thereon. . . from information or knowledge of such sales, obtained from the owner, seller, purchaser, lessee or occupant of such comparable land, or from information obtained from the broker or 11 brokers or attorney or attorneys who negotiated or who are familiar with or cognizant of such sales, which testimony when so offered, shall be competent and admissible evidence in any such action or proceeding.” • Improper Verification can be Fatal Flaw to Appraiser’s Credibility

  17. Acceptable vs. Not Acceptable Source • Acceptable • Attorney Involved in Transaction • Realtor Involved in Transaction • Grantor and Grantee (Best Source) • Not Acceptable • Tax Assessor • MLS/Zillow/CoStar • NJACTB

  18. NJ TAX COURT RULE 8:6-1 • SALES MUST HAVE • BLOCK, LOT, STREET #, AND TOWN • GRANTOR AND GRANTEE • SALE DATE, BOOK AND PAGE #, AND SR1A # • LEASES MUST HAVE • LESSOR AND LESSEE • DATE OF LEASE AND RELEVANT TERMS

  19. MUST NAME TENANT AND LANDLORD!

  20. ALWAYS CHECK THE MATH!!!! • Total Expenses = $1,067,505 • $2,345,000 Mistake when capitalized

  21. Lingchi – Death by a 1000 Cuts • Lose Credibility • Catch Mistakes, Change Value • Possibility of getting appraisal barred

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