With revaluations getting underway this year in both South Orange and Maplewood, many homeowners have concerns about the impact on their finances. Will their already high property taxes go up even more?
We know from recent history that revaluations can be contentious, especially when property owners feel that their properties have been unfairly evaluated. As a real estate professional, I know that markets do not like uncertainty and, for a short period of time, there will be some uncertainty in the eyes of buyers surrounding the final valuation on SOMA properties which will not be known until 2024. As realtors, we will have a lot of questions to answer from both potential buyers and homeowners about what this means for them.
That said, there is no doubt that revaluations are necessary in both communities. Communities are mandated to conduct them periodically and often choose to undertake a revaluation when property values are significantly over or under their market values. The goal of a revaluation is to fairly assess the value of each ratable based on its current market value. Right now assessed values and market values in SOMA are completely out of whack.
For example, in 2022 Maplewood homes sold for an average of 56% more than their assessed value and South Orange homes sold for an average of 49% more than their assessed value. That means that there is a lot of correcting to do to bring assessed values in line with market values.
My advice is not to be fearful. The goal here is a fair outcome for all taxpayers.
Some things to keep in mind:
- A revaluation should be revenue neutral. It is not intended to raise the total amount of taxes collected but to distribute the tax burden equitably.
- If the assessed value of all properties is brought to current market value the tax rate will go down.
- Not all property owners will have their tax bills increase – some will stay the same and some will be reduced.
Do not hesitate to email me at [email protected] to set up a time to chat about your plans for 2023.
The Allison Ziefert Real Estate Group is a top producing real estate team based at Compass in Short Hills, NJ. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair/Glen Ridge, West Orange, Morristown and the surrounding NJ towns. We are driven by earning great testimonials and referral business from happy clients. You can read our reviews here.