AUTHOR OF LETTER:
William C. Jeas
18 Jan.
LETTER ADDRESSED TO & SENT TO:
Navjeet Bal, Commissioner
Mass. Dept of Revenue
100 Cambridge Street
P.O. Box 9494
Boston, MA 02114
Dear DOR Commissioner Bal,
Subject: What’s Gone Wrong With Northboro’s FY10 Residential Property Valuations – Send State Help
I am a residential property owner in Northboro. Our fellow town homeowners have been recently informed on the 3-year Re-Valuations of the townМs residential properties. We have a problem!
INTRODUCTION TO NORTHBORO’s UNFAIR PROPERTY VALUATIONS:
All across the Nation and in our State, residential Property Values have been uniformly and consistently plummeting downwards, the largest and longest-ever epoch of massive falloffs in Housing Prices in AmericaМs modern history…it is unprecedented.
However, in Northboro the Assessor’s FY10 residential property valuations are:
(1) egregiously unfair;
(2) faulty in logic & derivation; and,
(3) not legally well-based.
Across the Nation:
The National Association of Realtors recorded the median home price fell 14% from the first quarter of 2008 to the first three months of 2009, to just $169,000. Of the 152 metropolitan areas across the nation surveyed by the NAR, a meager 18 areas out of 152 registered metropolitan areas experienced annual price gains.
Across Massachusetts:
The Banker & Tradesman Report recorded significant and widespread falling home prices. Banker & Tradesman, citing Warren Group data, reported the median single-family home sold in October 2009 fetched $285,000 compared with $331,000 a year ago in 2008 Т a decrease of 13.9%.
In Worcester:
The continuing downward spiral of local property values suffered their biggest single-year slide in more than 15 years in 2008. The average assessed value of single-family homes fell 12 percent from $234,201 in FY2009, to $206,517over the year. The total assessed value of all taxable property in the city dropped by an unprecedented $1.2 billion, or nearly 10 percent, between Jan. 1, 2008, and Jan. 1, 2009. Two-family homes and condominiums also experienced dramatic declines in average assessed valuations, falling by 17.6 percent, and 14.6 percent respectively.
BUT WHAT HAPPENED IN NORTHBORO?:
But, what has happened in Northboro with the Town Assessor’s FY10 residential valuations?
The following home sales highlight the problem of sales values vs. assessed valuations:
At 272 Crawford St: Home Sold in Nov 2009 fort $534,000 vs. Assessor FY10 Value of $635,700 Assessor’s Valuation was +19% Higher than Real Market Sales Value!
At 293 Davis St: Home Sold in Nov 2009 for $440,000 vs. Assessor FY10 Value of $488,600 Assessor’s Valuation was +11% Higher than Real Market Sales Value!
At 9 Kristyn Dr: Home Sold for in Oct 2009 for $440,000; $98,100 below the Town Assessor’s Valuation. FY 2009 Town Assessed Value was: $538,100. FY 2010 Town Assessed Value was: $538,400. Town Assessed values in FY09 & FY10 are both 22.5% greater than the Real Market Sales Value!
At 297 Crawford St: No recent Sales history. The FY08 and FY09 Town Assessed Values were the same at $817,900. Town Assessed Value in FY10 was $897,000, or whopping increase of +$79,100, a +10% increase; and, occurring during the most adverse recessionary period ever!
The DOR/DLS todate has certified 278 Cities and Towns in Massachusetts for FY10 Valuations. Over the last two years, the values have fallen 6% in average Single Family Homes across the state. Whereas in Northboro valuations only fell a mere 0.49% in the same period? Similar towns in the area (Berlin, Boylston, Southboro, West Boylston, and Westboro) fell even more, at 8.5%!
The following graph illustrates the (normalized) Average Values of 278 Massachusetts towns, the five(5) similar towns around Northboro, and the Northboro valuation. (Note: Chart was deleted due to software limitation of this website to include a graphic chart)
What Has Gone So Badly Wrong in NORTHBORORO,s VALUATION PROCESS – It Was FLAWED & UNFAIR
The basis for change in residential valuation should be based on the sales of CY2008 for valuation of each property on January 1, 2009. Because of the adverse recession years, only 61 homes were sold in CY2008 in Northboro (only 1.5% of all single family homes in town). DLS requires the latest 2% of all Single Family Homes sold be used as the basis of changing the average value of each house. Instead of using the last 2% of homes sold in CY2007 and CY2008 (homes sold after 9/27/07), the Northboro Assessor utilized all of the homes sold in both 2007 and 2008 (more than 4% of the homes sold in this period). As a result of this calculation, the average value of all homes fell by only a mere 0.69% rather than the 6% as seen across the state and 8.5% in towns surrounding Northboro. This resulted in an egregiously unfair valuation.
If the Northboro Assessor would consider the last 2% of all homes sold in Northboro (from 9/27/07 to 12/31/08). The average sales price should have dropped 6.19%.This is consistent with other state-wide homes and in towns surrounding Northboro
Therefore, the Northboro Assessor derived distorted higher residential property valuations, as a consequence Northboro homeowners are beset by egregiously unfair valuations.
In conclusion, how could the Northboro Assessor have missed all the verifiable downward plummeting real housing prices across the state and across the nation in these continuing adverse economic times? WHY? How was this allowed to come about? How were such clear and certain devaluation happenings missed by the Northboro Assessor? What changes are now needed to correct this unfairness in wrongfully derived property valuations?
Finally, the citizens of Northboro kindly request of DOR/DLS the following:
1. Do not approve the Northboro submitted FY10 valuations & related tax rate until fair valuations are accomplished.
2. Direct Northboro Town govt to revalue the townМs properties for FY10.
3. Send professional assistance and provide oversight to assure fair valuations.
Our townМs citizens welcome and look forward to your direct involvement and assistance to overcome the unfair residential property valuations for FY10. It would be financially harmful to taxpayers to leave these valuations stand, especially in these most adverse economic times.
Thank You.
Respectfully Submitted,
Original Signed by
William C. Jeas