Real Estate

5 Steps to a Successful Property Tax Appeal

Have you been assigned what you believe to be an unfair property tax assessment? This is a very common problem for property owners. However, the good news is that tax assessments can be appealed.

Understandably, if you have no tax or legal experience, you may not know what to do or how to get started with tax planning for your estate, especially Regarding property tax appeals.

Here are some steps to help you handle a property tax appeal like a pro.

What is a property tax assessment?

Property taxes are based on the value of your home. This is an especially important consideration for those looking to buy and flip a home, as improvements to the property will likely increase property tax values ​​significantly.

Property tax is assessed by a property tax assessor, who is employed by your local county authority. Appraisers examine your property, compare it to similar properties and consider factors such as whether the property is residential or used for business.

When making their appraisals, they may apply the cost method, a property valuation method that takes into account the cost of improvements to a property and the underlying value of the land on which it was built. Alternatively, your property can be appraised by its market value or income-generating potential.

Although the factors that determine your property’s appraised value are objective, how individual appraisers interpret this data may vary. This means there is a high chance of getting an incorrect or unfair appraised value for your property.

Steps to a Successful Property Tax Appeal

If you are currently dealing with what you believe is an incorrect assessed value for your property, there are steps to take to correct it.

Filing your appeal in a timely, organized manner can be the difference between success and failure. While these five steps will not guarantee a successful appeal, they will help ensure that you present a logical, coherent case to the authorities.

1. Review the assessment for accuracy.

Before considering an appeal, it’s important to understand how property is assessed. You can request a copy of your property appraisal report from the county assessor’s office.

Your most important task at this stage is to read the report thoroughly and cross-reference any figures with publicly available data. For example, you can and do cite things like the exact size of the property, the number of bedrooms and bathrooms it has, the average property price in the area, etc.

Given the potentially technical nature of property appraisals, it’s a good idea to interview several real estate agents. These professionals will have access to resources such as databases, real estate virtual assistants, professional networks, and legal contract analysis, putting them in a better position to analyze your property’s appraised value. .

Mark Pearce, as CEO Wyoming Trustsays, “While reviewing property appraisals is something you can do yourself, it may be a good idea to hire a real estate professional or attorney. Such professionals not only know What to look for and they have better resources for that, but they’ll also be able to take more time than you to check the diagnosis.”

2. Research comparative characteristics.

A clear sign of an incorrect appraisal is that your property is appraised at a higher value than comparable homes in the same area.

Look for properties within the same area that are similar in size, age and condition. Additionally, real estate websites, public records, and local real estate agents can be valuable sources for finding and evaluating comparable properties.

Jonathan Feniak, General Counsel Colorado LLC Attorneysays, “Many people underestimate how much a little due diligence can help build their case. Getting a real estate attorney to look at the data and do the fact-finding can help any property. Can make a world of difference in tax appeal.

3. Collect evidence.

Once you’ve done your due diligence by reviewing your appraisal report and comparing it to other properties in the area, it’s time to compile the evidence. Don’t leave anything to chance. Building a strong case by gathering as much evidence as possible is always a smart move. The more evidence there is, the better your chances of a fair verdict.

4. File your appeal early.

In most cases, you will be able to file your appeal online. However, in some states, you will need to do this physically. The most important thing to remember is to make sure you file your appeal correctly and early.

Alan Parks, owner of Roofing Corporation of Metro Denver And Colorado Springs Roofingadvises, “Property tax appeals have tight deadlines, so you need to act quickly. The exact time frame for filing an appeal varies from state to state, so you should check with your local Check with the assessor’s office to find out how much time you will have.

Whatever the case, be sure to double-check all the instructions and make sure you’ve included all the required information.

5. Follow up.

After the hearing, it’s a good idea to follow up with the appeals board to make sure they got all the information they need. You should also keep a record of all correspondence and decisions relating to your appeal, as these may be useful in the future.

getting started

If you are considering filing a property tax appeal, these steps will help you prepare and present your case effectively. As we have suggested, it would be a great idea to hire a lawyer to help you go through this process effectively.

Note via BiggerPockets: These are the opinions expressed by the author and do not necessarily represent the opinions of BiggerPockets.


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