On May 24, 2016, the City of Paterson Municipal Council approved a contract with the company Appraisal Systems for an amount of $800,000 for an annual revaluation of the city’s properties.
This annual revaluation will negatively affect homeowners in the city, resulting in a greater county tax burden on Paterson homeowners.
The annual revaluation of properties is advantageous only when the real estate market is declining or if all municipalities in the county do the same. However, we are experiencing an uptrend real estate market in which our properties are gaining value.
If the administration continues this practice, Paterson’s homeowners will see our county taxes increase because we will be reflecting higher values for our properties compared to other municipalities in the county that do not perform yearly revaluations.
The trend in 2017 and foreseeable future is to increase property values. All studies of those who are experts in this field arrive to the same conclusion for several factors:
1) According to Movoto.com, the City of Paterson property average list price rose from $164,900 a year ago to $175,000 this year.
2) Freddie Mac and Fannie Mae have increased their property financing capacity to $424,100 for the first time in more than a decade.
3) The increase in the interest rate is indicative of an improving economy.
4) The group identified as “Millennials” enter the average age of home acquisition.
5) The type of government being implemented by President Trump suggests that it will deregulate many of the regulations that affect the real estate market.
6) The reduction of unemployment and the increase in the purchasing power of workers.
7) The demand for properties exceeds the offers.
8) From 2015 to 2016 there was a 5% increase in the construction of new homes and it is expected that the same trend will continue for the next few years.
It is important that our city council and the administration conduct more rigorous studies and seek expert advice in this matter to prevent homeowners from continuing to carry the tax increases that we have become accustomed to in the City of Paterson.
Looking to bring relief to some homeowners, we will be filling property tax appeal applications completely free this Sunday, March 26 from 10 AM to 5 PM at 60 Butler Street, Paterson NJ.
Warren Buffett once said, “Part of making good business decisions is to recognize the bad decisions you’ve made and the reasons why you made those bad decisions.”
Homeowner and 2018 mayoral candidate