River Edge Reassessments Paying Off, Assessor Says
Borough tax assessor Jim Anzevino reported that on average the town assessment is on the mark when it comes to housing sales with 10% of 2012 sales going for above the newly listed assessment
While the 2012 River Edge reassessment had upset taxpayers, developers and realtors last spring, the borough is now seeing a 90-percent sale ratio with homes going at the assessed price or higher according to tax assessor Jim Anzevino.
Anzevino appeared before the Mayor and Council on Tuesday night to review the 2012 reassessments impact on last year's 90 house sales. The 90 sales did not include any foreclosure or bankruptcy sales or homes that were sold to a private family member.
"On the total aggregate our ratio of sales is 90-percent with a standard deviation of 9.5-percent," Anzevino said. "On average about 10-percent of the sales were higher than the assessed value. This is like an A-."
The standard deviation represents the probability that a homes actual sale price will fall within a plus or minus percentage of the assessed value. According to Anzevino, a standard deviation under 15-percent is the best option.
During his report, he broke down each type of housing and it's standard deviation.
Conventional homes, such as an extended ranch had the lowest standard deviation of 2.40-percent followed by a raised ranch at 3.9-percent and a typical ranch at 5.33-percent.
Any bi-level homes that were sold in 2012 went for their assessed value according to Anzevino. Split-levels, cape cods and a contempory home ranged from a 7.28-percent to 8.42-percent standard deviation.
Due to the large number of colonial homes in River Edge, Anzevino divided the housing market into three groups - those homes built over 50 years, ones built from 1970 to 2000 and any new construction.
The oldest set of colonials had a deviation rate of 11-percent, the middle group was at 7.18-percent and new construction came in at 9.99-percent.
"The brand new homes actually sold at a higher percentage their their assessed value over other homes," Anzevino said. "It seems like the ration is holding up and the assessments are right now. There is not one style that is doing better than another."
The assessment by Appraisal Systems cost the borough approximately $174,000 by teaming up with Cresskill and Dumont to share the cost. For the past two years, the borough had been slammed with tax appeals, approximately 150 as of November 2010 and then 132 by August 2011.
The 2012 reassessment moved all homes to an equalized value but had an unintended result that one-third of all residents were going to see a hike in their taxes from $1,000 or more with newer constructed homes with an average tax bill just shy of $30,000 annually.