Learning how to appeal property tax assessment in a down economy is something that every savvy homeowner, investor should learn. We are all trying to figure out ways to save money, cut expenses, and build the future that we are desiring. A main element in all of this trimming of the fat is taxes.
As an extra note, to the investors out here please understand that you can also appeal your property taxes on your investment properties. It doesn’t have to just be about your primary home. All your properties are subject to taxes and therefore you have the right to appeal if you think something is out of order. A lot of times when we are learning how to invest in real estate we think most of these homeowners rights don’t apply to us when they do.
Let’s not pretend that the local, state, and federal Governments have not going tax happy. Everyone is feeling the pressures of rising taxes in their areas and it is not a great feeling. One solution is to learn how to appeal property tax assessments in your area and see what the outcome will be.
Successful Appeal of Property Tax Assessments
Invest With Passion is not saying that everyone will be successful at appealing their property taxes every time, but it is something that you should look into in the future. This is because to appeal your tax assessment, it doesn’t cost you a thing. You don’t need a lawyer or anyone to handle this for you. All you have to do is follow the steps we have outlined below and you are on your way.
It is kind of a hurry up and wait situation as you fill out the appropriate paper work, then wait for your local Government to review your case. This is a small price to pay in the hopes that you might shave a few thousand bucks off your tax bill every year.
In fact, we know people have successfully challenged their taxes with appeal and have won. These people have received thousands of dollars back from their assessors office and have been happy about their decision to learn how to appeal property tax assessment.
Instructions: How to Appeal Property Tax Assessment
1) Pull out your new tax bill. The first step in righting the wrongs in your tax assessment is to pull out the bill and review it. There are two things that you want to pay attention to on this bill and it all depends on the first one. Check out the assessed value on the tax bill. Does it seem to high to you? If this is the case and in many occasions it could be the case, then you want to move on to the second part of this step. Take a look at the instructions for disputing your tax assessment. Be careful to read everything as there may be some key deadlines that you have to follow in order to assess your taxes. This is the case most of the time. The main crux of the matter here is to find the necessary forms you will need to complete the tax assessment review.
2) Get supporting documentation. This is a very important step because now you have to gather information that proves that your property is being over valued. This includes finding closed sales in your neighborhood of homes that are similar to yours and selling for less value. You are not able to use properties that are currently listed for sale on the market. These are active sales and are of no use.
In order to complete this step, you will need to contact a local real estate agent or appraiser to run a comparable sales analysis on your property and provide the last 6 months of properties that have sold in your neighborhood. Most people have to call on a local professional because they don’t have access to closed sales. This is done through the MLS or multiple listing service.
3) Compare the closed sales to your home. Now it is time for the tricky part of finding out if your home as actually decreased in value. It is recommended that you note the price per square foot of the closed sales your realtor or appraiser provided you with.
From eHow: In other words, if a 2000 square foot house sold for $200,000, then it sold for $100 a square foot. Average the $/per square foot price for all the comparable sales that the Realtor provided for you. Multiply that amount times the square footage of your home. If your neighborhood homes have sold for an average of $100 a square foot, and your home contains 1900 square feet, then your home should be appraised for about $190,000. There will be some variation, of course.
Source: http://www.ehow.com/how_5351304_appeal-property-tax-assessment.html
In addition to the above information, you have to take into consideration the amenities, number of bathrooms, fireplaces, the size of the lot, brick exterior verses frame, and more. If you are not comfortable analyzing this information, they you will have a difficult time making your case to get your assessments lowered, but we feel like it is worth a shot.
4) Make the decision to appeal tax assessment or not. At this point, you have found the form you need, the procedure, deadlines, gather some comparable properties, done your research, now you have to make the decision to proceed or not. If you feel you have a case, fill out the paper work, complete your evidence and send the information into your tax assessor’s office. Send in the evidence even if they don’t ask for it up front. If you have a valid or even a potential case, they will ask you for the evidence, so you may as well have it included.
5) Out of your hands and up to the Review Board. At this point, you have done your job and it is out of your hands and up to the review board. In some cases, you may have to attend the tax assessor’s meeting and discuss your evidence and information with the review board. Relax and just answer their questions. Most of them are homeowners and understand you are just trying to only pay what is due and not a cent more.
Take these steps into consideration and be sure to do your home, taxes, and wallet a favor by implementing the information you just learned on how to appeal your tax assessment.
