Freaky Real Estate Listing?

It's all a bit random, isn't it?

Take a look at the house at 7 Warren that was the subject of Barista's article "Your houses worth, three ways."

It was pulled off the market for a couple weeks, and now is back on for even more.

Is on for $829K...up from $769K...and ASI estimated $740K.

Anyone know the story on this?

It's not just ultra high end homes that have this anomaly. 14 Warren Pl sold in Aug 04 for $769,918. ASI's value of the property is $616,100 - a difference of over $150,000.

I bought my home in Sept 04 and ASI claims that my home has increased almost $160,000.

Now I know that values have fluctuated from neighborhood to neighborhood, but I don't think that type of discrepancy can be supported.

This house is LISTED for more than the Assessment. It has not sold yet!

If the rest of the house looks like that shot, I'd buy that house for 1.5 right now. It's way undervalued. My own home on the other hand is way overvalued by ASI.

reval wars - yes - I'm a buyer too at $1.5MM or more - the rest of the house appears to be totally "done" and drop-dead gorgeous. Just click on the link above to go the realtor's listing to see the interior photos. $1.499MM assessment is a total joke.

My guess is ASI didn't inspect the interior of the home. If they can't gain access, they were supposed to assume the interior is at the high end for similar houses in the neighborhood. Doesn't look like ASI did that in this case.

I really got screwed!!! I bought in March of 2006 for $995,000 and ASI came in at $1,643,000 and I made no improvements. Check 142 Central Ave that sold $1,900,000 and is valued at $1.3 mill. Something is really wrong here.

There are a number of us here that feel like we've been really screwed in this process. I wonder if there is anyway that those of us in a similar situation can band together and pursue some sort of class action litigation.

It might be something to consider.

Yeah there's a house up the street from me that ASI has appraised $500K below the home's sale price four years ago. These people got a HUGE tax cut, courtesy of the other taxpayers and ASI's error.

Yes maybe we should consider a suit of some sort. In the meantime I'm waiting see how my appeal comes back.

We also got ripped off - bought in Oct 04 and are now appraised $100K more than our purchase price (with NO improvements). Something is wrong.

White man builds new house with chlorine pool after usurping in all fresh, natural water sources. Then he complains about his taxes. Go figure.

ASI tried to take subjective judging out of the equation by looking at squre footage and lot size. What they perceived as cosmetic improvments held less value in the assessment. Two buyers going into the same house can have different reactions based on their tastes and needs. Based on their reactions they might be willing to put different bids on the house. THAT IS REAL ESTATE! There is no perfect system, unless some of the readers would like to suggest one.

"What they perceived as cosmetic improvments held less value in the assessment"

we aren't talking about "perceived cosmetic improvements" here....have a look at that kitchen in the listing...more like $100K+ of tangible capital improvements. Granite counters, island, butlers pantry, double dishwashers, etc.

In retrospect, moral of the story seems to be get all your renovation done before the reval...then don't let ASI in to inspect...they'll just go off the square footage....and your taxes will be the same as some chump with a 30-year old kitchen!

There are a number of pricing philosophies available to a homeowner when selling their home - ultimately the homeowner decides what price they would like to list their home for. The buyer decides what price the home will sell for, and we realtors guide and advise.

"ultimately the homeowner decides what price they would like to list their home for. The buyer decides what price the home will sell for, and we realtors guide and advise"

yes, but the point is the realtor will have a good idea of whether or not the seller's price is fair and realistic (one would hope) so in this case if that is true and it is a fair listing price, then again ASI is way off the mark here. If the house does indeed sell for $2.15M, then ASI did the town a disservice by not valuing it closer to the listing price. A $650K difference is not even close, (and contradicts Councillor Joyce Michaelson's recent newslettter claim that "the comparables were comparable and I’ve noted that listing prices in the paper seem to be in line with the revaluations".

In effect other town taxpayers are subsidizing this property tax bill, so the process is broke somewhere.

Who's that bozo talking about a chump with a 30 year old kitchen? We eat fresh killed game and maize grown from the bountiful soil. He's all hung up over some other white man's obsolete metal box appliances! I hear white women withold sex if they have old appliances. Is this true?

So Karin, care to offer your opinion on what that house should sell for?

$1,499,000? $2,125,000?

Looking at the sales history for this house, someone paid $1.975m (with a list price of $1.6)in 2003, and then someone paid $1.45 in 2004 (with a list price of $2.1). At the high end, prices can be volatile. A 2004 valuation could be appropriate considering how poorly the market performed in the latter half of 2006 - certainly some appreciation from the last two years has been lost as a result.

I feel for homeowners who are facing large increases in their property taxes and would be more than happy to give my honest (and might I say expert) opinion on your own home or appeal process. Call me at Schweppe Burgdorff!

The house sold that high in 2003 because it had a buildable lot next door that someone purchased for $525,000 and built a $2,000,000 home.

Forgot to say that they subdivided the property.

I'm not moving to Montclair because we were scared off by the assesment.

Taxes were I high on the place we were buying, but we'll only know in August what the new taxes will be.

I can afford a big house but I'm not willing to pay $3000 a month to put someone else's kids through school.

It's true Lenny. I withheld sex and got new appliances!

Because it's nice? There are grown trees?

Trebor - the assessments for most houses are final now - just look them up on ASI's website (Google: ASI Montclair).

The only houses where they are not final is where there is an appeal pending. ASI was supposed to have all the responses out by now - has everyone heard back? They seem to be late.

I heard back late last week and requested my updated Property Record Card today and still found one or two errors. I am hoping to resolve over the phone and not be forced to file an appeal.

The county tax board told me that ASI told them that all letters will be sent by the end of this week.

Hello,

Thanks waiting! I googled the ASI and found the site.

I finally found the correct PDF with the houses new assessment. It went up from $700,000 in 2006 to $1,700,000 in 2007.

Question: With a tax rate of over 5.3%..does this mean that the owner will have to pay $90K a year in property taxes now?

No..the old tax rate of $5.37 is going to adjust into the low 2 dollar range once the next budget is announced -- using the new 100% valuations.

The Township has already announced that the municipal portion of the budget should calcuate to a rate of $2.007. When you add the County and Bd. of Ed, they say the rate should come out in the low 2 dollar range, which is actually a tax rate reduction.

Higher property values all around...lower tax rate needed to collect the income.

Nonetheless, there are a number of valuation anomolies being noted. Part of the problem is our brokers. A number of people clearly overpaid for properties during the top heat of the market. Some of these homes were just not worth the price in real market terms at that point in time. But the buyers -- many from out of town -- had no way of confirming this. They needed to rely on their brokers to advise.

It always happens. When fear and greed domimate market decision-making, mistakes are made.

Unfortunately, if you believed that a house that wasn't really that great was worth $150,000 more than it should have sold for at the time, then you are a bit stuck for the short term.

What's hard is when everyone is bidding up due to a lack of supply. Then the higher prices becomes the market reality at the moment -- until things settle back to earth..more supply is available and buyers can really compare true value at a less stressed point in time.

We had the high of this last market cycle about 18 months. Now we are in the short term low of a new cycle. Based on past cycles, things will jump right back up to below the last peak once this low is passed, then move higher than the last peak and a new high will be established.

The question is when. Nonetheless, it will happen. Always does.

Martin Schwartz

Sure blame it on the Brokers. I'm a broker and bought in this inflated market. There is a short supply of home on the market so I paid top dollar to get the home I wanted to raise my family. So again supply and demand. Don't blame it on the brokers its not there fault!!!

Well, I wouldn't blame on the brokers either. I bid on 3 houses and got outbid by idiots who thought the property values were certain to rise even higher.

I've had to wait for the market to cool before looking at houses again.

I would blame the City for orchestrating a property tax assessment in the wake of such an abnormal cycle, though. It's just not worth dropping $3k a month in taxes to live in a crumbly old Tudor house.