A guide on how to appeal property taxes
It’s fair to say that if you live anywhere in the country, you’re probably paying more property taxes than you should. The National Taxpayers Union, in fact, estimates that roughly 60% of all American properties are currently overvalued.
What makes this particularly shocking is that, since 2003, mid-size home prices have dropped dramatically. Therefore, we would expect tax assessments to be adjusted to reflect such declines in market values, although this has generally not been the case. Therefore, property taxes for many homeowners continue to rise unfairly despite a continued decline in local home values.
Due to a considerable shortfall in budgets, many municipalities are, in essence, accumulating additional taxes on homeowners, many of whom are exercising their constitutional right to appeal. Although appealing property tax assessments can be difficult and time consuming, and not always successful, being well prepared for the fight can significantly increase your chances of success.
Evaluate your assessment
It is important to understand how your property is appraised. Ask a local real estate agent to help you compare your property with similar properties that recently sold to determine its market value. Multiply that value by the assessment rate that has been established for your city. If the market value of your property is, say, $ 100,000 and your appraisal rate is 80%, this means that the property tax is $ 80,000. Some rural areas and upper-class neighborhoods use another evaluation method when estimating the replacement cost of the home by adjusting for factors such as the value of the land.
Property registration card
Then check your evaluation for errors. To do this, you will need to obtain your property worksheet from your local appraiser’s office. This worksheet is also known as a property registration card and contains information about your property such as number of bedrooms, dimensions, number of bathrooms, etc. Check if all the information about your property provided in the worksheet is correct or not. If you discover incorrect or missing information, send this information immediately to the local appraiser along with a plan of your property. This way, you can receive an immediate reduction and be exempt from a formal appeal.
Comparable sales
Compare the appraised value of your property with other similar properties in that area. Look at the property worksheet to compare other factors like square footage, age, bedrooms, bathrooms, etc. In this way, you may be in a stronger position to appeal if the appraised value of your property is found to be higher than at least five other properties. Make a list of comparable properties along with your other details like square footage, building materials grades, same neighborhood, etc. This list should be prepared when requested by the evaluator. Registering your neighborhood properties is available on your local assessor’s website.
In case you find only three properties evaluated at a lower value and three at a higher value, do not lose hope because in this case you might be entitled to a reduction that represents the difference between the comparable properties and your property. Your home may be the only property with a lousy rating that prevents you from having a less-than-desired garden or view of your city’s water tower.
To struggle
Different locations have different rules, and your review should be able to explain how your appeal works. To do this, you can provide evidence to the assessor, including a list of comparable properties, repair estimates, plans, and photographs for their review. This way you can get a good settlement informally and the appraiser can continue to fill in your rolls and get a fair rebate for you. On the other hand, if no agreement is reached, continue to pay your taxes to avoid future penalties on your property. Don’t worry because if the county is happy with your appeal, you will either get a reduction or verify all future bills thereafter.
Before submitting your appeal form and other related documents, make sure they meet all the requirements set by the county or not. Keep a copy of all documents and information you have submitted for your records. In a few months you will probably receive an answer and if you think that the reduction you have is not fair, you can take the next step. The next step is to present your case to an independent local appeal body. This will be more advantageous because you can explain your case personally. You can use photographs, plans, etc. to show that your appeal is correct. Also send a copy of the entire evaluated document highlighting the important points to each board member.
If your case at the local level fails, you can take it to the state and even judicial level. However, keep in mind that the court hearing will include court fees, attorneys’ fees, and other expenses that could negate any savings you might get from winning an appeal.
Where to go for the right help
It is better to enlist the assistance of an expert who will not only save time but will also provide proper guidance. In this way its attractiveness will become stronger. One more option is to submit your address and case to an online service company. These companies, for a moderate fee, will highlight comparable homes in your area along with their appraisal information and their selling price. If they think your case is strong enough, they will send you a report that you can file with your local appeals board. If the appeals board rejects your appeal, the money will be refunded to you.
If you decide instead to hire a professional appraiser, confirm that the board you are appealing your case to allows it or not. Certified appraisers can be found through the Appraisal Institute or the National Association of Independent Rate Appraisers. Most charge between $ 250 and $ 500. Hire someone who not only has experience in the field, but is also familiar with the local neighborhoods in your area.