Ithaca Board of Realtors joins the New York State Alliance of MLS

Warren’s affiliation with the New York State Alliance MLS (NYSAM) through the Ithaca Board of Realtors (IBR) now provides clients in our Ithaca Offices with significantly increased MLS exposure. By tapping into the combined listing data from the Buffalo-Niagara MLS, the Central New York Information Service (CNYIS), and the above boards, clients gain exposure and access to a tremendous footprint across New York State. This means our Sellers’ properties are searchable on all the above boards and our Buyers have access to all the listing data in the above areas.

It is the season for assessment! The Tompkins County Assessment office sent out their Preliminary Property Value Assessment for all properties in the county for 2024. If you have not received yours, feel free to call the assessment office at 607- 274-5517.

Tompkins County re-values all properties in the County to assist local governments and school districts in determining the rate at which they need to tax local property owners to fund their annual budgets.

This year’s annual adjustment is sure to raise some eyebrows as the average assessed value in the preliminary assessment reflects a 19.8% increase over 2023. This is extraordinary and on top of an average increase in 2023 of 10%.

Releasing the preliminary assessments is the first step in a weeks-long process of review and opportunities for property owners to challenge the County’s determination of value. While the final assessed value is only one component of the formula to determine property and school tax rates (put simply: total property value divided by final municipal or school district budget = tax rate), it is the most visible expression of rising property values and sets the tone for conversations around housing affordability, challenges to investment and development of housing in the county, and reinforces the perception that New York is a high property tax state.

And, it also has already begun to stir social media commentary and conversations in the County. As such, if you feel as though your preliminary assessment is inaccurate or excessive, you do have a few avenues that you can pursue to both challenge and express concerns over, the value shown in your preliminary assessment.

1. You can request an informal one-on-one review with the Assessment Office beginning now through April 12, depending on the location of your property (more detail below);
2. You can apply for a formal review by the Assessment Department staff up to April 12 in hopes of reducing the assessed value when they publish the “tentative” assessments on May 1; and
3. You can attend the Grievance Day hearing on May 23 and make a personal appearance before the Grievance Board. After that, the assessment values become final and are used to calculate the next round of municipal property tax and school tax rates.

Lastly, you can also attend any Tompkins County Legislature session (1st & 3rd Tuesdays at 5:30 pm) and use the public comment period or formally request to address the Legislature in advance or submit written comments of any length. Speaking at the Legislature is restricted to 3 minutes but is the most direct way to express your opinions and concerns to the body that governs the County operations, including the Assessment Office and the County’s own budgetary process. The next meetings during the assessment cycle will be on March 5, March 19, April 2, April 16, May 7, and May 21, 2024.  If you do wish to speak at one of these meetings, instructions can be found on the County website here: https://tompkinscountyny.gov/legislature/publiccomment

While the assessed value of a property is something of a flashpoint for local concerns over rising values and taxes, please keep in mind that the assessed value does not determine the property and school taxes assigned to the property. ONLY the amount of money the school district, county, and municipality require to fund their annual budgets does that. All the assessed value does is impact the resultant rate that the taxing authorities use to collect their money. A higher assessment means a lower tax rate while a lower assessment means a higher rate. Either way, the actual amount of the taxes due doesn’t change.

What this means is that when there are opportunities to talk to the taxing authorities (county and local governments and district school boards) during their annual budgeting process (and subsequent votes), this is when the total monies they seek to generate from property taxes are determined and is arguably the most impactful time to make a difference in your tax bills.

In the meantime, to help you guide your through the assessment grievance process, here are the target dates by municipality for mailing of notices and scheduling grievance reviews:

The Formal Assessment Review Deadline is April 12, 2024

The first opportunity to argue the assessment is through one-on-one reviews with the Assessment office staff. These appointments are available as early as the first week of March, depending on the property location as shown in the chart above.  This is an opportunity to present any useful information that the staff may consider to re-value the property before the final assessment is issued.

However, property owners can also request a formal review by written application.  The Preliminary Review application must be filed with the Tompkins County Assessment Office by Friday, April 12th to allow the appraisers time to prepare the Tentative Assessment Roll. Tentative assessment notices will then be mailed on or about May 1.

To help you with this process, the 2024 Preliminary Assessment roll is available here and viewable at https://tompkinscountyny.gov/assessment

You can complete a formal Assessment Review Application (due April 12) online – click here or download an Assessment Review Application – click here.

Once the Tentative Assessment rolls are published on May 1, there is one last formal Assessment Appeal process that takes place on May 23 by personal appearance on Grievance Day.

Please reach out and let us know if you’d like our assistance in reviewing your property assessment or simply are seeking advice on whether and how to appeal. While we can certainly review market data to determine whether the proposed assessment seems aligned with current values, you may also wish to hire a licensed appraiser which, historically, has seemed to hold greater weight in arguing value since it is presented by a licensed 3rd party reviewer and is approached very similarly to the way the County Assessment Office values properties.

If you have any other questions about this – feel free to reach out to our Ithaca offices.

Welcome to Warren Real Estate, your trusted partner in the dynamic world of real estate. Whether you’re a seasoned investor or a first-time homebuyer, the real estate market can be both exciting and overwhelming. In this blog post, we’ll guide you through key aspects of the real estate landscape, providing insights to help you make informed decisions.

Understanding Market Trends:

The real estate market is constantly evolving, and staying informed about current trends is crucial. At Warren Real Estate, our experts analyze market data regularly to keep you updated on the latest developments. From fluctuating home prices to emerging neighborhood trends, our goal is to empower you with the knowledge needed to make strategic decisions.

Financing Options and Mortgage Rates:

One of the most critical aspects of any real estate transaction is securing the right financing. Understanding the financial landscape will empower you to make decisions that align with your long-term goals.

Neighborhood Insights:

Choosing the right neighborhood is as important as finding the perfect property. Our goal is to help you find a home that not only meets your needs but also fits seamlessly into your lifestyle.

Navigating the Buying and Selling Process:

Buying or selling a property involves a series of steps that can be complex for those unfamiliar with the process. We’ll break down each stage, offering practical tips and guidance to streamline your experience. From preparing your home for sale to negotiating the best deal, Warren Real Estate is here to support you every step of the way.

Investment Strategies:

For those looking to build wealth through real estate, we’ll explore various investment strategies. Whether you’re interested in rental properties, fix-and-flip projects, or long-term appreciation, our blog will provide insights into maximizing your return on investment.

Legal and Regulatory Considerations:

Real estate transactions come with legal and regulatory considerations that vary by location. We’ll shed light on common legal aspects, ensuring you are well informed and prepared for a smooth transaction.

Warren Real Estate is committed to providing you with the knowledge and resources needed to navigate the real estate market successfully. Stay tuned for regular updates, expert insights, and valuable tips that will empower you to make confident decisions in your real estate journey. Remember, when it comes to real estate, knowledge is key, and we’re here to be your trusted guide.

Have We Turned a Corner for 2024?

As we wind down a challenging year in real estate, we have an opportunity to reflect on the obstacles and difficulties the market presented to our clients and customers and begin to gain perspective on how 2024 might play out.

Declining Inventory and Rising Rates – A Tough Market for Buyers, and Sellers

It is no secret that those who have been trying to sell a home in 2023 experienced some conditions that seem to contradict each other resulting in a softening of the recent rise in home values. For one, a strong continued decline in the number of homes offered for sale in 2023 would suggest that buyers would once again be competing to secure a home and consequently drive prices higher. And indeed, this was true, but it was more limited than we’ve experienced in the past 3 years.

In 2023, there was an 18% decline in the number of homes listed in Tompkins County from 2022, and was the fourth straight year of declining inventory.

While it is also true that interest rates really began their climb in 2022, the impact was rather muted as cash continued to play a significant role in propelling sales and, therefore, market value. A cash buyer almost universally would beat out a financed buyer as there was less risk to the home seller, and often would be willing to pay more. But the era of “cash is king” that reigned for much of 2020 through 2022 seems to have weakened in 2023, giving financed buyers a bit more leverage, or at least greater ability to compete.

Home Values increased at a slightly softer rate.

However these buyers also had limitations on how much they could borrow as prices remained strong and lenders required appraisals to support the value being borrowed. As a result, sellers who had been seeing dollar signs the previous three years began experiencing the limits of price elasticity and seem to be becoming more accustomed to the idea that value growth is softening. 2023 marked the second year of softening increases in home prices with an increase of just below 7% in Tompkins County.

So, what does all of this mean for 2024? Overall, we’re optimistic.

Given the market fluctuations and competing forces on real estate values, it’s impossible to forecast with any certainty where we’ll end up in a year, but looking at the fundamentals of inventory, interest rates, and market economy, a picture seems to be emerging.

First, inventory remains at historic lows. The rapid development of market-rate rental housing in our area, including senior housing such as Library Place may begin to bring some local homes onto the market. Increased rental inventory coupled with growing regulations impacting short-term rental potential may also begin to encourage some local property investors to sell off part of their portfolios. However, neither of these scenarios is enough to offer any significant relief in available inventory. A sustained effort at the creation of new, owner-occupied for sale housing across a range of price points throughout the county is still a critical need to begin to balance the market and create opportunities for first-time and modest-income buyers.

Second, interest rate stabilization and potential further declines should begin to reset and establish a new reality facing both sellers and buyers. Rates have declined for 9 weeks in a row and locally 30 year fixed rates are again moving downward towards 6% from a high of over 8%. Interest rates are low by historical standards and at some point, both buyers and sellers may find that keeping their other life plans on hold while awaiting further declines may not be satisfying. Between the rapid growth in equity, sellers have accumulated in the past three years and the gradual decline in inflation and mortgage rates coupled with growing incomes for many buyers, their purchasing power should improve and help encourage those who have been sidelined to re-enter the market.

Look for our 2024 Market Report coming out later this month with data covering a wide range of property types, local school districts, and overall market performance from 2023. And be sure to reach out to your Warren Real Estate agent for more insights into the local market and experienced support in your home sale or purchase. In this challenging market, it pays to work with a licensed professional to help ensure that you have the information and resources you need to meet your goals.

Written by: Brent Katzmann, Warren Real Estate

(All data sourced from the Ithaca Board of REALTORSⓇ MLS based on results from 1/1 through 12/31 of each year reported. Data is believed to be accurate but not guaranteed.)