Inaccurate LPT bands

cremeegg

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The new small area LPT bands show a house I own in Band 3 €262,501- €350,000. The small area includes just a part of one housing estate.

The highest price ever achieved for a house in this small area according to the PSRA website was €150,000

I know its a self assessment tax, but my house is no different from any other house in the estate and if I opt for band 1 I am in effect saying the Revenue guide is wrong, is there any way to ask Revenue to reconsider its valuation.

Have any other readers noticed obvious mis valuations ?
 

NoRegretsCoyote

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The new small area LPT bands show a house I own in Band 3 €262,501- €350,000. The small area includes just a part of one housing estate.

The highest price ever achieved for a house in this small area according to the PSRA website was €150,000

I know its a self assessment tax, but my house is no different from any other house in the estate and if I opt for band 1 I am in effect saying the Revenue guide is wrong, is there any way to ask Revenue to reconsider its valuation.

Have any other readers noticed obvious mis valuations ?

It depends on when the €150k was achieved. Plenty of houses sold in 2012 would sell for double today.

The Revenue model allows for this.
 

cremeegg

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Actually I have re-checked the PSRA, a house with an extension in the same estate, though in a different small area sold for €221,000 in June last. Previous to that a house sold for €136 in Nov last year.

A long way from €262,501
 

NoRegretsCoyote

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That's interesting.

It's a long time since I looked at Revenue's model but I think it works off the characteristics of the dwellings as much as the prices in the area.

Revenue make clear that the model is a guide, not a prescription.

My house is average sized but most houses in the area are quite large. The Revenue model for the area suggested band 9, but I submitted band 7 as I think that's the range in which my house would sell. I'm comfortable with that.

Anyway it's a self assessment system. You know the likely value better than the Revenue model does. Once your house eventually sells within the same band or one above you'll be fine.
 

Gordon Gekko

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the guidance should inform that valuation though.
I wouldn’t have thought so.

The valuation should be informed by comparative properties in the area (sales rather than asking prices).

Both similar properties and ‘per square foot basis’ comparisons in the area.
 

Blackrock1

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732
I wouldn’t have thought so.

The valuation should be informed by comparative properties in the area (sales rather than asking prices).

Both similar properties and ‘per square foot basis’ comparisons in the area.
ill put it another way, i would assume if you use the band this small areas LPT gives you, id imagine you should be relatively safe should you be challenged (within obvious reason)
 

Wollie

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I have the opposite problem to that recounted by others! I visited the Revenue's website. The value they put on houses in my estate is less than 60% of what I have self-assessed our house to be worth, based on what I'm paying. The value I put on it for tax purposes looks reasonable as an estimate of what the house was worth a few years ago. I was thinking of increasing it by around 25% to 40% for 2022, but now I'm thinking I'd be a fool to be honest about its value! Having said that, no houses were sold in the estate in the last few years. I don't know what the houses sold a few years ago went for.
 
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Gordon Gekko

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ill put it another way, i would assume if you use the band this small areas LPT gives you, id imagine you should be relatively safe should you be challenged (within obvious reason)
Not at all!

Bands or guidance or indicators have no relevance at all.

Work out the market value of your property and go with that.

Everyone seems to want to play ducks and drakes with material that Revenue have come up with.

This process is very simple for the vast majority of properties. What’s the property worth on 1 November? End of story.
 

cremeegg

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The house is worth €180k or €190k. Revenue have it in Band 3 i.e. > €260k. All houses in the estate are similar. So my self assessment tells Revenue that they are wrong by 2 bands. While I think this is the case I am concerned that I may be opening a can of worms.
 

Gordon Gekko

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5,705
The house is worth €180k or €190k. Revenue have it in Band 3 i.e. > €260k. All houses in the estate are similar. So my self assessment tells Revenue that they are wrong by 2 bands. While I think this is the case I am concerned that I may be opening a can of worms.
Why?
 

Blackrock1

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732
Not at all!

Bands or guidance or indicators have no relevance at all.

Work out the market value of your property and go with that.

Everyone seems to want to play ducks and drakes with material that Revenue have come up with.

This process is very simple for the vast majority of properties. What’s the property worth on 1 November? End of story.
It's not that simple. I bought my house new in 2016, there are 18 similar houses in the estate, not one has sold.

You can't give a definitive value as the market hasn't been tested.

I know what it would take for me to sell it, but that's higher than what I can value it at using things like the small area map or cso inflation figures for dlr.
 

NoRegretsCoyote

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I know what it would take for me to sell it, but that's higher than what I can value it at using things like the small area map or cso inflation figures for dlr.
Most people would need more than market value to sell their house, in some cases infinitely so. At any point in time most people don't want to sell their house!

Revenue are looking for the hypothetical value of an open-market transaction.
 

Gordon Gekko

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I haven’t looked at this at all until around 5 minutes ago.

Revenue’s estimate is 6 bands of the mark in my view.
 

Gordon Gekko

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It's not that simple. I bought my house new in 2016, there are 18 similar houses in the estate, not one has sold.

You can't give a definitive value as the market hasn't been tested.

I know what it would take for me to sell it, but that's higher than what I can value it at using things like the small area map or cso inflation figures for dlr.
I’m not having a go at you personally, but that playing ducks and drakes. Look at house price inflation over the last five years. Look at properties with a similar profile and spec in the general area and work out a “per square foot” basis.

This is classic Irish stuff…with respect, you know more or less exactly what your house is worth.
 

Blackrock1

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732
I’m not having a go at you personally, but that playing ducks and drakes. Look at house price inflation over the last five years. Look at properties with a similar profile and spec in the general area and work out a “per square foot” basis.

This is classic Irish stuff…with respect, you know more or less exactly what your house is worth.
i think i know what my house is worth, but i also know what i can reasonably stand over is its value using other metrics in the absence of anyone selling one in the meantime. ill be going with the lower figure.
 

dereko1969

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i think i know what my house is worth, but i also know what i can reasonably stand over is its value using other metrics in the absence of anyone selling one in the meantime. ill be going with the lower figure.
So you're knowingly putting in a lower value in a tax return? Think there's a word for that.
 

huskerdu

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So you're knowingly putting in a lower value in a tax return? Think there's a word for that.
Its exactly what Revenue have instructed people to do

"You can value your property, as at 1 November 2021, by referring to the following interactive tool and information sources for guidance:

You should keep a copy of any information sources and documentation that you use to determine the market value of your property."

 
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