A CONTROVERSIAL REVALUATION IDEA!

01.08.09

A number of towns around the NW corner have completed, or are winding up, their revaluation process for 2008: included are the Towns of Sharon, Litchfield, Norfolk, and Cornwall. The towns completing revaluations have essentially revalued properties based on sales completed during 2007, about the height of what was quite a frenzied period of real estate business .

There has been a lot of discussion about these "new" values, since the real estate market is changing significantly, and not in the same direction as the new assessments. With selling prices in most post-September 2008 transactions showing a downward trend, many assessments that I have looked at have escalated significantly, some outpacing market values that I feel exist for them in this emerging new real estate market. Therefore, should these new assessments be adjusted right away? A good argument might be made to do it.

Evidence already exists, and this will increase I think, to show that the (selling) prices reached up until very early 2008, will not continuing in 2009. A new economic era is upon us and it is affecting everything that the consumer will buy, including real estate. As a result, I feel these recent revaluations are already obsolete before the ink dries on the forms.

Based on my limited review of several "new" values in Sharon and Litchfield, I think the following formula could be applied to bring these new assessments more in line with the "real" values I feel are applicable to real estate in these towns for 2009: Reduce all assessments for properties assessed below $1,500,000 by 10, 15, or 20%; reduce assessments for those assessed over $1,500,000 by 15 or 20%. Since budgets aren't set, there is no real liability to the Town(s), since taxes are set by Mill Rates based on annual budget needs.

A percentage choice is suggested to cover the various categories within each value sector: Improved, commercial/industrial, and land.

Although this idea is probably too radical to be embraced by these Towns, I suspect that readers owning property in these towns could see much to support in this idea. I would head the list.

Happy New Year.



©2009 R. Leech features.