How Does New Jersey Medicaid Value Real Estate?

New Jersey only counts the equity value of real estate as an asset, so that one must subtract all encumbrances (ie. mortgages) first.  The value of real property is determined by taking the tax assessed value and multiplying by the reciprocal of the assessment ratio as recorded in the most recent State Table of Equalized Valuations.  You can call your town to find out their equalization ratio .  The reciprocal is the inverse (ie.  1 divided by the ratio).  For our elder law clients whose property is in disrepair or would otherwise not sell for the value calculated by this method, we can obtain a real estate appraisal to determine value.