Amherst, N.Y. (WBEN) - As the Town of Amherst sends out reassessment notices, how could the reassessment affect property values? One real estate expert says some residents may consider selling their homes.
Peter Hunt of Hunt Real Estate says if the town goes to full assessment, there's one thing on his mind.
"If they do not change the equalization rate, which is the measure against how many dollars per-$1,000 of assessed value you actually pay, in terms of taxes, it's going to be a hard blow to just about everybody in the town," warned Hunt during an interview with WBEN.
The assessment could also affect future home sales.
"Everything in real estate values from a buyer's perspective, as a matter of affordability. If more of your payment is going to taxes, then less of it can go to principal and interest, which means that you're not going to be able to pay as much. So values could be hurt substantially," Hunt noted.
With full assessment meaning 30%-to-40% of values being added for taxation purposes, according to Hunt, people may decide to sell their home, but not get the value they thought they would have. Where would they go?
"Every town is looking at this thing right now. But again, if they leave the equalization rate where it is right now, everybody's gonna get hit fairly hard. I think that's a very, very short sighted decision on the politicians' part and it's a devastating blow to an individual homeowner," Hunt said.
Hunt wonders if another reassessment will happen next year if values go down.
"If they do, what will then happen? How will that affect the budgets in the town itself? This is a very complex question. And just to say they go to full value is, in my mind, only a small part of the equation," Hunt said.
The expectation for Hunt is for many to exercise their right to challenge the assessment.
"If you're challenging it against fair market value, how much is really gonna change? Let's say your house was assessed to $300,000 and all of a sudden it goes to $438,000. You'll have to argue that's not worth $438,000, which means that well then what will it be worth? And if I was the attorney arguing that I would say, well, it's going to be worth less than $430,000 just by virtue of this reassessment. And then on top of that, you're going to argue every little nickel to see how you get that assessment down it and there will be some success at that," Hunt said.
Residents can challenge assessments until July 1. Amherst says values are at 62% of full market value.