Wife and I are looking to buy a house in New Providence. The house we are interested in was last sold in 2008 for $337K or so. Since then, the owner (who is also a builder) stripped the place down and rebuilt everything from bottom up. The place is immaculate and now he is asking for over a mil. Now, the question is that taxes on that place look very low compared to the asking price. The taxes are $15k but i am wondering if that's because of last sale price. Meaning, as soon we purchase the property in the asking price range then the house will be reassessed and the taxes will end up going to $25-30k/year.
Any ideas on how tax assessment works on recent home sales?
You will be on the hook for the higher assessment after the abatement runs out.
2. At least in Bergen County, most towns do appraisals of every home/condo every 5-10 years. When was the last one done? That might give you a hint of a coming nasty surprise.
3. Does New Providence adjust the appraised value after a sale. Your real estate agent should know that one.
BTW, 15k sounds way high for a 300-400k house so maybe the taxes have already gone up?
BTW, 15k sounds way high for a 300-400k house so maybe the taxes have already gone up?
The reason we were interested in the house were taxes seemed low for a house in the price range. After seeing the house - I am pretty sure he either had abatements or the house hasn't been assessed at today's tax rate.
If the house I found on realtor.com is the one you are looking at, the land assessment is very very low which is why the overall taxes are low. From that, two things:
1) the land assessment shouldn't change, so you should be good there
2) I would question why the assessment is so low, 50% lower than smaller lots. Something to ask your realtor.
you can check the history of property taxes, and see when it increased after the renovation.
Current sales data is not used to re-assess properties typically.
It won't be re-assessed just because you buy it.
I have a website bookmarked at home where you can look up the assessment, tax rate and purchase price of any property in NJ (nothing is private anymore).
I'll try to remember to post it here tonight.
From that you can check the neighbors land assessment to see if there is something out of whack with this property.
But your realtor should really be answering these questions. If they don't know or can't figure out how to find out, find another realtor.
Link - ( New Window )
I am an attorney and practice in real estate (just closed a deal in New Providence last month). If I had the address I could give you more information on the current assessment and history, etc.
I am an attorney and practice in real estate (just closed a deal in New Providence last month). If I had the address I could give you more information on the current assessment and history, etc.
Thanks guys - I really appreciate all the advice. Here is the listing. The house is absolutely gorgeous and well built.
New Providence House - ( New Window )
131 Union Ave - ( New Window )
So - this means there is a high probability the taxes won't go up on the house? Also - could there be abatements of any sort?
Call the Boro of New Providence Tax Assessor and give him the Block & Lot. He'll tell you if there is an Abatement in place and when it runs out.