Recently Purchased Properties

If you recently purchased property for less than the assessed value, you MAY be able to win your recently purchased property tax appeal using your own purchase price as evidence, however there is no absolute right to have an assessment reduced simply because a transaction occurred at a value lower than the assessed value.

In essence, it is still necessary to prove the case, and prove the value of the property. The town can argue that the purchaser “got a good deal.” Certainly, a purchaser at a short sale, and at times a purchase from an estate may occur at less than fair market value.

All that being said, IF YOU PURCHASED PROPERTY FOR LESS THAN THE ASSESSED VALUE, YOU SHOULD FILE AN APPEAL TO REDUCE THE ASSESSMENT.

In Passarella v. Township of Wall 22 N.J. Tax 600 (App. Div. 2004), the Appellate Division stated: “It is well established that the price established by an arms-length sale of a property is probative of its fair market value. Indeed, the sales price of a property may be the best indicator of its true value in some circumstances.” Passarella, supra, at 603 (citing Glen Wall Assocs. V. Township of Wall, 99 N.J. 265, 281-83 (1985); Hackensack Water Co. v. Division of Tax Appeals, 2 N.J. 157, 162 (1949); Romulus Dev. Corp. v. Town of West New York, 7 N.J. Tax 305, 316-18 (Tax 1985), aff’d o.b., 9 N.J. Tax 90 (App. Div. 1987).

Using these cases, I have been very successful in reducing assessed values for recent purchasers. I am always happy to discuss a particular case.