GARDEN STATE APPRAISAL SERVICES LLC

On May 1, 2009, the revised Home Valuation Code of Conduct (HVCC) will go into effect.  The way residential appraisal work is obtained will most likely change.  Most appraisals will be ordered through 3rd party sources such as, but not limited to, Appraisal Management Companies. This would be a great time to prepare.  It's not too late to get added to their rosters, but you need to act now. 

Revised HVCC Effective May 1, 2009 

Home Valuation Code of Conduct

http://www.freddiemac.com/singlefamily/pdf/122308_valuationcodeofconduct.pdf

 

The Cure Is Worse Than The Disease

Both lead off with language regarding the need for sound appraisals produced free of any influence or coercion on the part of the lender or any other party. Perhaps for that reason, many appraisers initially applauded it. But, as is always the case with any governmental or even de facto regulation, the devil is in the details. And in this case, here at a la mode we believe the details create a misleading and dangerous environment for both borrowers and for appraisers.

http://www.appraisalpress.com/news/articles/hvcc_the_cure_is_worse_than_the_disease

The mortgage market has seen its share of ups and downs, and collateral value is at the core of lending once again. You need accurate, independent appraisals done in compliance with all of the existing and new regulations, especially with regards to the new HVCC ("Home Valuation Code of Conduct"), which is slated to take effect in early 2009. Of course, with a new regulator of Fannie and Freddie and all the market turmoil surrounding them, nobody even knows if the HVCC will actually take effect. So, you’re in a quandary. Do you outsource appraisals to an appraisal management company and take on the risks associated with abandoning appraisers with whom you’ve had a good working relationship for years? Or do you manage them in-house and risk being accused of influencing values? Is there a way to hedge your bet and get the best of both worlds?

http://www.mercuryvmp.com/?ClickID=LFT&ClickThruEmail=&ClickThruCustomerNumber=0

The HVCC - Definition of the Problem - Top 10 List of Problems with the Home Valuation Code of Conduct

 

     Ellie Mae's New HVCC-appraiser, appraisalEllie Mae's New HVCC-Compliant Appraisal Services Provide Fast and Easy Way to Achieve Compliance With New GuidelinesNew Home Valuation Code of Conduct regulations in effect on May 1, 2009, require mortgage professionals to change the way they do business with appraisersPLEASANTON, CA—March 13, 2009—Ellie Mae, the leading provider of loan processing software for mortgage bankers, brokers and other third party originators, announces its HVCC... Read Full Story

http://www.zimbio.com/Real+Estate+Appraisers+Business+Toolbox/articles

 

 

 

New Jersey has the Highest Property Taxes in the Nation 

Taxpayers with assessments in excess of $750,000 are allowed to file an appeal for direct review of their property’s assessed valuation by the Tax Court of New Jersey, without first filing an appeal with the local county tax board. This not only saves on filing fees and costs, but also expedites the appeal process. A complaint for direct review may include - in separate counts, separately assessed - contiguous properties in common ownership, in the same or different taxing districts, providing that the assessed valuation of one of the separately assessed, contiguous properties exceeds $750,000. Tax appeals on assessments of less than $750,000 must first be filed with the county tax board.

If the taxpayer prevails in securing a tax appeal judgment reducing its assessment, the so-called "Freeze Act" binds the municipality for the years covered by the tax appeal plus two additional years, subject to two exceptions. The first exception is a complete revaluation of all real property in the municipality, while the second exception is proof by the municipality of a substantial increase in the property’s value (such as an addition qualifying as an added assessment, a condominium or cooperative conversion, a subdivision or a zoning change). These exceptions aside, the assessment is frozen at the reduced level, at the taxpayer’s sole option. Thus, if a taxpayer wishes to appeal for a further reduction during the freeze period, he or she is free to do so.

The foregoing points are merely intended to scratch the surface of this area of the law. However, it should be clear that there is a tax for the informed and a separate higher tax for the uninformed. This should also help to explain why the sophisticated property owner should have his tax assessment reviewed by competent counsel every year to determine whether a tax appeal is warranted.

The filing deadline for tax appeals each year is April 1^st.

One obvious reason for filing a real estate tax appeal is to obtain a lower assessment on your real property and thereby save significant tax dollars. An equally important reason to keep taxes low is to help maintain the value of the property making it more saleable in the event that the tax appeal is successful.

It would be wise to review the assessment on the property each and every year to see whether a tax appeal is warranted. The problem is that most owners of industrial, commercial and apartment properties, as well as tenants under a net lease, are not aware that they may be prime candidates for successful tax appeals even after looking at their new assessment.

For obvious political reasons, many tax assessors discriminate against non-residential properties. Studies published each year by the New Jersey Division of Taxation prove this point clearly. Furthermore, although all municipalities in the state are supposed to assess real property at 100 percent of fair market value, these studies show that only a handful, in fact, do. Indeed, few property owners are even aware of the actual assessment/true value ratio in their municipality.

Property owners often feel that their property is worth an amount equal to the assessment on the property. This misconception leads owners to overlook the different ratios of assessed value to true value applicable in each of the assessing districts of New Jersey and to overlook the fact that these ratios generally decline each year. For example, if a property worth one million dollars this year is located in a municipality with a 60 percent ratio, it should be assessed at $600,000 this year. If that ratio drops to 54 percent next year, its assessment should be $540,000. If the ratio drops, but the assessment remains high, it may be time for an appeal

THANK YOU ,

WAYNE FAMULAR JR

GARDEN STATE APPRAISAL  SERVICES

27 BURNHAM CT SCOTCH PLAINS

NEW JERSEY  07076

(732) 939 3770