A recent report indicates that one in eight homes are incorrectly assessed by the Municipal Property Assessment Corporation (MPAC), defined as having an assessment that is off by more than 20% of the proven market value. As reported in The Windsor Star, approximately half of those homes sold for more than the assessed value and half sold for less than their assessed value.
Just like I tell my clients when buying or selling a home: The MPAC assessment is a great tool to give an indication of value, but it is not an exact science. MPAC bases their assessments on ma
rket comparables, but may not take into account specific features, updates and condition. Further, MPAC may not have done a visual inspection of the home in over a dozen years!
So when you are buying or selling a home, you may want to know the MPAC assessment. Sometimes its a great tool, but other times its hogwash.
If you think your MPAC assessment is too high, you may want to file a Request for Reconsideration with MPAC. Of course, if your assessment is too low, you probably don`t want to file a request to pay more taxes! However, if your assessment is considerably lower than true market value your agent may be fielded with questions from potential buyers when you list your home. If you have a good agent, they will be knowledgeable about MPAC`s procedures and will prove true market value independently of MPAC`s assessment.
How it works....... Property taxes are derived from multiplying your assessed value by your local municipality mill rate. No opportunities are available challenging your local municipality mill rate - good luck with that one, but the assessed value of your property is a different story. It can be challenged successfully, substantially reducing your property taxes.
The assessed value according to Municipal Property Assessment Corporation (MPAC) is supposed to represent the Fair Market Value (FMV) of your property. From my experience MPAC property valuation amounts all over the map, rarely valuing correctly especially in this market.
To challenge MPAC successfully you need to prove to them the correct market valuation of your property with support documentation. One method to determine FMV of your property is to obtain a free no obligations market evaluation from a licensed realtor, who better is equipped to provide the necessary support documentation requirements.
To initiate your request for a reduction in your property you must complete the Request for Reconsideration Form
Compliments of Ron Klingbyle a full time top producer real estate professional serving Windsor and the surrounding Essex County Community Areas. If you're thinking of Buying or Selling a home, investment or commercial property or relocating to the Windsor / Essex County Area? Contact me I can help, let my consistent, proven accomplishments and lifetime experience in real estate go to work for you.
