Understanding the Ratio and Your Neighborhood Assessment

Here is a good example of why the ratio matters. Remember, a good estimate of the 2020 ratio would be 80-82%. The Department of Revenue will most likely release the number at the end of March.

Here is a small neighborhood that needs to be reset. The Reserve at Wellman Avenue is a condo ranch development of 6 units that have sold in 2018, 2019, and 2020. There are only two home styles and they have the same features. They are pretty easy to assess.

Three properties are the larger model (2106 sq. ft) and 3 units are smaller (1360 sq. ft.). Below is the sale date, price, 2020 assessment and the ratio for the 3 larger units which are all the same size with similar features.

Property Sale. Date Sale Price 2020 Assessment. Ratio

3 Selpan Way 10/10/13*. $ 350,000. $ 296,500 0.85

4 Selpan Way 5/28/20 $ 359,934. $ 303,500 0.84

7 Selpan Way 6/3/19 $ 363,934 $ 390,000 1.07

* listed as 2019 build

7 Selpan is grossly over assessed. Taxes are being collected based on 107% of the sale price, while the other two nearly identical properties are assessed at 85%. So, the 2020 tax bill for 4 Selpan was $6,862, while the bill for 7 Selpan was $8,832. An abatement filed for 7 Selpan will return almost $2000 in overpaid 2020 taxes. And this assessment level will stay the same for 2021 saving the property owner more than $4000 in taxes. Additionally, the three other properties with the smaller model are paying more in taxes than the lowest assessed large model. All of these properties should abate and reset their assessment level. In 2022, when Vision performs its magic, all Nashua properties will be brought to market value and a ratio ideally at 100%.

How do these assessments become so out of whack when the construction all happened after the KRT update? It is very unclear why the assessment level varies so widely, but this is why it is important to pay attention and understand whether you are paying more than your fair share. If you think you are over assessed, look at the sales data and go get some money back.