Comparables As “Arms Length Transactions”

 

Homeowners I find will often make the often fatal mistake of using distressed sales as comparables, assuming this is allowable. What needs to be understood is that each comparable sale used must be what is referred to as an “arms-length transaction.” This would exclude sheriff sales, short sales, REOs (bank foreclosures) or sales between members of the same family. An exception would be if, say, short sales and foreclosures comprised a significant segment of a particular market. For towns, though, where short sales and foreclosures are a minority, citing them as comparables in an appeal could be grounds for a dismissal.   

From Newsworks:

What you include in an appeal can make the difference in successfully challenging property tax assessments in New Jersey.The sales prices of similar homes in a neighborhood are a key in determining whether an assessment is changed.David Wolfe, a property tax lawyer in Livingston, said it's better not to include foreclosed and short-sale properties in those comparisons.

 

 

 

Here are some other tax appeal sites I found for you to browse. Thanks for visiting njpropertytaxappeal.net.

Comparables As "Arms Length Transactions"
Comparables As "Arms Length Transactions"
How to fight the property tax assessor - Aug. 31 2009
A Path to Fairer Property Taxes Where Politicians ... - New York Times
Census reveals plummeting U.S. birthrates - USATODAY.com
Philadelphia gains Pittsburgh shrinks in population - USATODAY.com
HolmlawNJ - Twitter


email

Similar Articles

Assessing Your Assessemen... Fair to say,  if you are living in New Jersey, you are probably paying more property taxes than you should. The National Taxpayers Union, in fact, estimates
Howell Reassessment Blame... From Howell Patch: It was because of all those successful appeals that the county ordered a recently completed assessment. “The assessment further caused a significant decline in
Christie Congratulated Fo...     From NJ.Com: Christie Administration announces property tax growth in Morris County NJ.com “By any measure, Governor Christie's property tax reforms have been a resounding success
Tax Appeals In Atlantic C... As property values continue to fall and tax rates soar, homeowners are filing assessment appeals in record numbers -an increase of over 33% from 2010. The county
Lawrence Appeals Puts Pre... A total of 195 tax assessment appeals were filed this year by Lawrence Township property owners by the April 2 deadline, a record number for the township,
Deadline For NJ Tax Appea...   Bу Eric Obernauer Nеw Jersey Herald   Fог tһоѕе wһо Ьеӏіеνе they're paying tоо mυсһ property tax аnԁ аге thinking оf filing аn appeal, tһе annual
Increasing Number of Tax ... From National Real Estate Investor: State governments desperate to feed municipal coffers are pushing more property tax appeals into litigation, and property owners are finding it difficult
How to Avoid Unfair Prope... By SUSANNA KIM (@skimm) March 14, 2012 The battered real estate market has another side effect that often goes overlooked, consumer finance and tax experts say: Millions
Appeals In Garden State K... Used to be tax appeals by homeowner’s were a minority. No more. Each year tax assessors find themselves with an increasing number of appeals, as homeowner’s continue
Tight Financial Times Hav... Thursday, March 15, 2012 More city homeowners are appealing their property tax bills than in years past as the levy which has doubled in the 10 years
No Matter Where You Live ...   NJ.com See which N.J. counties have the highest and lowest property taxes NJ.com TRENTON — Three New Jersey counties saw average property tax bills top $10,000