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Yes! You can appeal your property tax assessment!

By
Real Estate Appraiser with Commercial Property Tax Advisors

So you've received a notice of assessment on your house and the notice states that if you feel that you could sell your house for the assessed amount or more the value is fair.  We have gone to a "fair market system" now right?

Wrong!

Well, not necessarily...fair market value involves multiple approaches to value: replacment cost, sales comparison and income approach.  Obviously the income approach doesn't apply to residential properties, but the replacement cost and sales comparison methods do.

The local assessor under state guidelines is using replacement cost with market multipliers and depreciation to determine your fair market value.  What can you do?  I recommend that every homeowner go to the assessors office and retrieve a copy of their "Property Record Card".  This information sheet lists all the details of the valuation of your home.  In replacement cost, value is determined by the actual improvements of the property.

Homeowners can take a half an hour with a tape measure and determine if the assessor's staff has actually measured the home correctly.  I've seen 1200 SF homes measured at 1400 SF.  I've seen basements assessed as comletely finished when in fact, they're completely unfinished.  I've seen homes assessd as having a brick exterior when maybe only the front has brick.  Perhaps the space above the garage is unfinished but because the assessor wasn't able to gain access to the home they assumed it is finished.  I've seen simple data entry errors.

The point is this:  your local assessor is a "mass appraisal firm".  They have very little time in which they have to handle a very big job in assessing an entire township.  By Indiana law, if a homeowner denies the assessor entry to a house, or if the assessor cannot gain entry due to work schedules, they have the right to ASSUME the interior details.   By taking a little time out of your schedule to verify that the information listed on the property record card is accurate you can save yourself some cash.  Most assessors have a desire to be accurate and they are generally very fair to deal with.  Dont forget that they are elected and need your vote.  They are a part of the community and have a job to do just as we do.  If you do find an error with your assessment, stop in and talk to your assessor.  I think you'll find them eager to fix any mistakes.

If this info happens to help someone out, I'd love to hear about it!

        
 

 

Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
Unfortunately, most appeals here fall on deaf ears. But it's always worth a try!
Dec 16, 2006 05:48 AM
Robert Kumpfer
Commercial Property Tax Advisors - Merrillville, IN

Well Rich, I'm unfortunately not too well versed in the assessment system in Washington but I'd love to hear more...why are there "deaf ears" there?  How often do you reassess?  What does the property tax money fund?  Do you have property tax specialists there?  What approach to value do they use?

I always enjoy sharing info about my industry from other areas!

Dec 16, 2006 09:57 AM
Steve Dalton
219-465-8352 - Valparaiso, IN
Northwest Indiana Home Builder
Rob, I think you'll find that though Indiana is antiquated in using "assessments" and not a market based system ... our assessors are a lot easier to deal with than in othe states.  Now the real question is when can we just go to a true market based system? 
Dec 16, 2006 11:14 PM
Steve Dalton
219-465-8352 - Valparaiso, IN
Northwest Indiana Home Builder

OK, another issue I'd like to see you handle, even though it is particularly delicate:

What about outsourcing the entire job of assessment?  If our assessors are really mass appraisers, and not really good politicians, shouldn't our county just hire the work out?  They could save on benefits, cut back staffing, outsource some of the key entry work, and  be held responsible for mistakes. 

Dec 26, 2006 12:53 AM
Robert Kumpfer
Commercial Property Tax Advisors - Merrillville, IN
Delicate isn't the word.  I don't think you can outource this kind of work for less than the total pay for all the assessing staff within a county.  Remeber that the 2002 reassessment in Lake County was outsourced to the tune of 20 million dollars.  Did outsourcing help create a better quality assessment and reduce the number of tax appeals??  The answer is no.  In fact, I have never been busier.  You would think for 20 mil the assessment firm would at least stick around to resolve their own mistakes.  They're nowhere to be found and now the local officials have to clean up after them.  I don't think that removing assessing officials is a particularly good idea. 
Dec 26, 2006 10:54 AM
Steve Dalton
219-465-8352 - Valparaiso, IN
Northwest Indiana Home Builder

Aha, something we disagree on finally.

Lake County is a den of thieves and using their experience as a barometer is no firm source material.  I'd like to see Porter County grab hold of this opporunity to show the rest of the state how this entire department could be outsourced.

Dec 29, 2006 12:41 PM
Robert Kumpfer
Commercial Property Tax Advisors - Merrillville, IN

Steve-

I think "den of thieves" is a bit of a stretch don't you?  We're talking about politicians elected by the voters.  We have to have faith that the majority of elected officials put in an honest days work.  You can't let a few bad apples spoil the bunch!  Van Bokkelen has done a fantastic job at weeding out the criminals in Lake County.  The majority of assessors here are experienced and work hard for their taxpayers.   Comparing the two counties is difficult however due to the sheer number of parcels in Lake vs. Porter.  It's really apples and oranges.

Jan 03, 2007 03:03 AM