I'm looking at a property owned by an LLC (property A). It is rural land in new hampshire, about 130 acres, without any improvements. It abuts another piece of property owned by the same LLC with a home on it, about 115 acres (property B). The owner of the LLC was recently imprisoned in 2017 for defrauding customers of his business. Property A's assessed value went from $186,900 in 2015 to $3,450 in 2016.
I'm wondering if anyone has ideas on why the assessed value might have gone down by 98%? If the trial was ongoing in 2015 or 2016, could that somehow lead to decreased assessed value (if somehow property taxes weren't being paid and the town took this into account when assessing)? Are there other common ways that assessments go down by so much?
Thanks for any thoughts.
Has nothing to do with anything mentioned....it is curious though. No zoning/land use changes? Comp sales nearby?
I like @Sam Shueh answer but I'll give you a couple more possibilities...
Erosion? Natural disaster? Environmental?
(The owner's issues have nothing to do with this.)
Were they assessing business inventory? Portable building removed?
I'm no expert on land and zoning, but how about:
Deed restriction such as permanent conservation easement, (or whatever it's called) so the owner could get a permit to develop the adjoining property?
Unbuildable due to wetlands or some easement?
You could always ask the assessor. If it's not a typo, you want to know the reason BEFORE you buy, not afterwards. And if it's a typo, and you buy it, and the mistake is discovered, I would guess you could get a bill for back taxes due.
all great thoughts. Thanks for the input. Based on what I can read from the property card online, it doesn't look like there were any building substations, change in zoning, or other restrictions. But I'll certainly go to the assessor to find out.
This does not provide insight in reason for drop in assessed value but in my property search, I have found that assessed value is usually more than the market value. Recently I found a duplex I like and noticed that assessed property value more than listed asking price by about $30k. I am wondering if this should be a concern. My offer is going to be less than asking price. Any thoughts !!!