Where do you see the market going with the new tax bill? As a local NJ real estate appraiser, that’s a question I’ve heard many ask me recently. Well, let’s start off with stating the potential factors of change. The new mortgage interest deduction decreases from $1 million to $750,000 and the new cap on the amount of state and local taxes including property taxes is $10,000. If you currently have an existing mortgage above $750,000, this change will not affect you as you will be grandfathered in.
The areas of the country with high real estate values and taxes will likely be affected most by the change. In researching this topic, I’ve read predictions of 5-21% decreases in market value. The States specifically cited to be affected most were: New Jersey, New York, Connecticut, and California. As of right now there has been no observable change, however it is too early to tell. While these are only predictions, as a resident of Union County, it wasn’t so pleasant to see it tied for first place on a national level for biggest decline in value from Moody’s Analytics (image below).
Here are a couple visuals from Moody’s Analytics for predictions presented in a Washington Post article and Business Insider.
The tax bill could also potentially increase the mortgage rates, which would decrease the demand for housing and weaken the market. This is due to the predicted deficit to increase by $1.5 trillion. Overall, the national decrease in home values is predicted to decrease by 4% by the summer of 2019 per a chief economist at Moody’s Analytics. To clarify, this doesn’t mean home values will be 4% less than what they are today, it means it is predicted that they will be 4% less than what they would potentially be in 2019.
According to the National Association of Realtors, home values are predicting to drop by 10% across the board by 2019. However, these predictions are off base since the study that was done eliminated the mortgage interest deduction as well as the property tax deduction all together.
Taxes are based on the fair market value of your home. If the property values decrease, so should your taxes. For existing homeowners looking to potentially lower their taxes or for potential buyers looking to purchase a home, we can review the property to see if you are eligible for a tax appeal. If you have any concern about your property taxes, please give us a call at 908-233-1337. We have a very high success rate handling tax appeals representing homeowners in New Jersey. With new tax laws changing, it is difficult to predict exactly how it will affect the real estate market, but again – lower property values should equal lower taxes.
American Realty Appraisals has become a leading real estate appraisal company in New Jersey by delivering accurate appraisals with great customer service and quick turn times. We perform appraisals for purchasing/selling, divorce, estate planning, tax appeals, refinancing and more. With experience in the appraisal field for the past 15 years, we have seen the real estate bubble both rise and fall and have gained the expertise to determine fair market valuation.
Call us at 908-233-1337 for any real estate appraisal needs.
Evan from American Realty Appraisals came out to our home last spring to conduct a home appraisal in support of our property tax appeal. He arrived promptly at the agreed time, was very professional and conducted a thorough walk through. We were very satisfied with the results of his appraisal - they were well-researched and accurately captured the features of the home. His appraisal proved to be a crucial element in a very successful tax appeal. I would gladly recommend his services to others.
I was extremely pleased in my experience with American Realty Appraisals. Evan was very knowledgeable and was happy to answer any questions I had. His appraisal was useful in our being able to successfully appeal our taxes. It was worth every penny. He also shared some suggestions on how to shore up insulation efficiency around the house. 5 Star service. thanks!
Evan was extremely helpful in our obtaining a favorable result from our tax appeal and I highly recommend his services
If you want the Do's and Dont's. I would say DO use Evan. It was a very smooth and easy process. He worked around my schedule. His turnaround time was very impressive. Price: He was in line with the other quotes I received. And you DON'T need to worry. I will recommend him and use him again
Prepared the documents to submit for a tax appeal and accompanied me to the tax appeal hearing to present my case. I have used American Realty Appraisals twice and have won my tax appeal each time.
I was appealing my real estate taxes and American Reality did an appraisal on my home. The appraisal went well and as a result the tax appeal was successful and our real estate taxes were lowered.
I was ignoring go through Tax appeal process because I thought it was so cumbersome with very little chance of winning. In this process, I used Evan for a tax appeal. Not only we won but it was very easy and simple process between him and the lawyer. I highly recommend to use Evan, he knows what he is doing!
The tax appeal through you and Lisa Walsh was successful, and you may use me as a reference any time in the future
Evan was great. He was instrumental in helping me to appropriately lower my taxes via an accurate appraisal. I highly recommend his services to anyone in need of an appraisal in NJ.
When the interest rates dropped last year, I decided that it was a good idea to refinance my mortgage. I was recommended to American Realty Appraisals by my mortgage company. They were affordable, expedient, and ultimately put together a very comprehensive report with figures, photos, and local comps. I would highly recommend them to anyone looking for a professional and honest appraisal company.
Evan and his team at American Realty Appraisals are simply the best at what they do. As a mortgage banking professional, I have worked with dozens of appraisal firms over the years and I continually return to American Realty Appraisals when I can for their expert advice and service. I would highly recommend them if you are an individual looking to have your home appraised, or a banker looking to add a high quality appraisal firm to your list of approved appraisers.
Before I went to list my home, I hired Evan at American Realty Appraisals. I wanted an unbiased opinion of what my home was worth. He provided a thorough report that gave me piece of mind and a leg to stand on when it comes time to negotiate. I was also pleased with how fast he turned the report around after the inspection.
I am an attorney in Westfield and I refer all of my clients to American Realty Appraisals. I have worked closely with Evan Siegel for the past two years and I have been impressed with his professionalism, integrity and expertise as an appraiser. Relying on his appraisals, I have been able to negotiate property tax reductions for numerous clients in Union County. I highly recommend American Realty Appraisals for all of your residential real estate appraisal needs.
ARA did a great job of handling my tax appeal. The guidance was spot on and the staff, specifically, Evan Siegel, was professional and knowledgeable. The outcome was excellent and I'm saving a good amount of money on my real estate taxes. Thanks ARA!!
I used Evan for a tax appeal project. It was a seamless operation between him and the lawyer. Zero blips, and we won.
Mr. Siegel performed an appraisal for my home for tax appeal purposes. He was very professional and helped me lower my taxes by 17%. I am quite satisfied with his work.
Highly recommend. Excellent service, professional, prompt. Great result