The Ratio is like a handicap. It's a number that you use to convert your assessed value into a fair market value. For instance, if your town has a Ratio of 50%, the assessed value is only half of the implied fair market value. That means that if your house is assessed at $200,000, the town is basically claiming that it's worth $400,000. Ratios vary widely from town to town and some towns have a Ratio of 100%, which basically mean the assessed value is the implied fair market value.
Once you know the implied fair market value of your home, you can begin to figure out if it's over-assessed. And you do that by comparing that implied fair market value to recent sales (within what's known as the "sampling period") of similar properties in the same neighborhood. At DePaul Law Firm, we can do that for you. Just call us at (973) 376-8585 and we'll help you decide if you should appeal your New Jersey property taxes.