In New Jersey, homes are assessed every 10 years in each municipality by the tax assessor. During that 10 year period the home’s value obviously increases or decreases, as well as the annual property taxes, but the assessed value remains the same. Many home buyers mistakenly believe the assessed value is what the home is currently worth. If this were true, then home values would only change once every 10 years! This assessed value bears little relation to market value.
The assessed value of a home is like a snapshot in time of the value of a home. Unfortunately, until a buyer learns this, they are under the misconception that if a home’s asking price is significantly higher than the assessed value the home is overpriced. Some buyers see plenty of homes that are priced higher than the assessed value and don’t make offers on homes they like because they misunderstand the tax assessed value. Be informed before you buy a home in New Jersey and make a choice based on current market value, not the assessed value. The assessed value you see for a home today, may be the value determined by the tax assessor 7 or 8 or 9 years ago, not necessarily this year.
For example, West Windsor had assessed their homes in 2005. Hamilton, NJ assessed their homes about 9 years ago and are due for a new assessment very soon.
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