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.

 

 

 

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
If They Had Only Checked ... From Star-Ledger: Jerry and Annette Auriemma stand outside their Maplewood home. The couple overpaid three years of property taxes after an appraiser hired by the town wrongly
Spotlights On New Jersey ...   NJ Spotlight Tax Facts: Getting Beyond All the Talk About New Jersey's Taxes … NJ Spotlight More taxes, no new taxes, higher taxes, marijuana taxes, corporate
Atlantic City Borrows Fun... From Press of Atlantic City:  Atlantic City Council votes to borrow $102 million to settle tax-appeal debts By EMILY PREVITI Staff Writer pressofAtlanticCity.com   …More at Press
NJ Tax Appeals: Do It On ... From Bankrate.com Home prices are falling everywhere, but homeowners hoping for lower property taxes may find themselves disappointed when the bill arrives. If you think your home’s
Tax-Exempted Properties M...   NorthJersey.com North Jersey towns reassess tax-exempt status for hospitals after key ruling NorthJersey.com The case “is a huge potential game-changer when it comes to property tax
Bergen County Tax Appeals...   The record pace of appeals inundating tax boards in Bergen County and counties throughout New Jersey for the last few years has slowed significantly this year.
Tax Appeals Impact South ...     South Brunswick Tax Appeals Continue to Rise Patch.com Nearly 400 tax appeals filed as township looks for ways to mitigate impact on the budget. By
Liberty Village Tax Appea...  EB5JJZK67RDY Liberty Village tax appeal settlement would cut Flemington revenue $159K in 2013 Hunterdon County Democrat – NJ.com FLEMINGTON — A tax–appeal settlement with Liberty Village Premium
For Homeowners Seeking Ta...   From New Jersey Herald: For desperate homeowners, meanwhile, the opportunity to obtain a reduced property assessment — and, by extension, a break on their property taxes