Re-assessment Article Series

Paul Peters, Volunteer

4/08

As you know, Vernon’s Property Revaluation is underway. So, as an aid to HLCC members I have written the following that is the first of three parts. While it contains my personal opinions and observation, it is based on numerous internet sources. In no way is it to be construed as a legal opinion or as an opinion of Highland Lakes Country Club and Community Association. For more in depth information and in conjunction with any legal challenges or appeals, please contact your attorney.

Revaluation Overview:

Revaluations are done when the market value of the properties in a municipality exceed the assessed value of those properties by more then a certain percent; when the ratio of the neighborhood sales value to assessed values between municipal neighborhoods are not consistent across those neighborhoods and their average difference exceed a certain percentage or when the last valuation exceeds a certain number of years. As Vernon’s last revaluation was in 1994, Vernon’s average assessed property value is approximately 49% of its market value and the ratio between neighborhoods exceeds 16%, the county has ordered this revaluation.

There are three phases to the Revaluation Process:

Inspection - where each property is visited and data about the property and the property’s structures, exterior and interior information, is recorded.
Valuation - where our property’s market value is determined based on the structures’ estimated reconstruction cost less depreciation and other factors plus the land’s calculated value using neighborhood land value sales data from the current [2008] and the prior year [2007].

3. Challenge or appeal - where the property owner can seek to have the property valuation reduced.

Vernon’s plan is to have the inspection and valuation process completed by December 2008 and the new valuation used for the 2009 tax year. However, when we receive our tax bills in July 2008 showing the 2008 final taxes and the preliminary 2009 estimated tax for the first two 2009 quarters, the estimated tax shown for those first two 2009 quarters will be calculated using our current 2008 assessed value.

So where is Vernon right now? They are in the inspection process and as of 3/18, the inspectors were working on Tax Maps 1 through 8. The Highland Lakes Maps are 15 and 20. Map 15 is the north part of the community where 20 is the south part. So we could see them in a few days or a few weeks depending on how many properties they need to inspect on each map.

Inspection:

This is the most important part of the process and it covers both our yards and our homes. We all know that a home’s value makes up the majority of our property’s valuation. As such, we need to ensure that the inspector gets all the data which they need about it for a fair valuation. To this end, the inspections are only done during daylight hours. Likewise, for a fair evaluation we may need to point out to them items that may not be visibly apparent to the inspector about a structure or yard deficiencies and which may reduce the property’s total valuation. This includes anything in the home that is obsolete like rubber cover wiring [this was an example given at the recent revaluation meeting in the town hall]. I would make up a list of such deficiencies over the next few days so that you can give it to the inspector when he arrives to do the inspection of your property.

The inspectors will make 3 attempts to view your property. The first time they will come as part of a neighborhood canvass. If you are not home, they will leave a call tag as to when they will be back in 7 days. Lastly, they will come back and, if you are not home, leave a second tag asking you to call for a daylight appointment.

If you are a seasonal member or receive a second call tag, make sure that you contact the revaluation firm for an inspection. If you don’t an overstated valuation may result as the inspectors are free to assume that your home has all the possible expensive features in it and the most favorable layout.

So what is included in the inspection? Just about everything. Yard data includes location, sheds, pools, docks, bulkheads, easements, conforming or non-conforming, flood plane, slope, shape, access, size, paving, detached garage and type, etc..

For the home, they go from the basement to the attic. They record the style, floor plan, exterior and interior condition, foundation and exterior wall type and material, roof type and material, heat source and type, if you have central air, the number of bathrooms and the type of kitchen and counter top, fireplaces and dormers, etc..

Make sure the inspector’s data is accurate before they leave by checking their data card for your property before you sign it. As the following are items that I feel could negatively affect the value of a property, I would bring them to the attention of the inspector. However, please keep in mind that whatever is recorded on the inspection card becomes part of the public record about your property.

House Condition & Layout:

Oil Heat/furnace and tank age

Electric Service [less then 100 amp]

Energy Efficiency – lack of insulation

Bathroom and fixtures’ ages

Kitchen, cabinets and countertop age

Sump Pump/Wet Basement

Exterior condition e.g.

Asbestos Siding or roofing.
Interior Condition e.g. mold, inoperable fireplace.

Septic System Age

Interior Layout problems

e.g. narrow hallways; steep stairs.

Garage size [Will it hold an SUV?}

Roof Age and Deck Age

Landscaping and curb appeal:

Property slope

Patio

Formal retaining walls versus stone rubble

Gravel vs. Paved Driveway

Road condition to property

Storm water retention and drainage

Wet spots and storm water pooling

Property erosion

Property Easements or Deed Restrictions:

Does your property have any easements to the:

Township
Highland Lakes Country Club
Other easements
NJ Conservation Restrictions
Non HLCC&CA Deed Restrictions

Highlands Act and Highlands Council

Final Regional Master Plan Items

While these are not factors that are currently considered in the valuation process, they may become factors if the Regional Master Plan is adopted before 10/1/2008: