For many people, keeping a close eye on their property tax bill is becoming the norm across the country, and for good reason. With the decline in the real estate market and the sheer fact that so many are trying to hold on to every dollar that they can, it is possible to save $100's, and for some $1000's, each year. Lowering your property tax has never been an overly difficult process, but until recently, less than 5% of property owners appealed their property tax assessments every year. Give the dramatic change in property values recently, this begs the question: What can you expect now when trying to lower your tax burden?
Much like visiting the local shopping mall in December, you can expect long lines and roadblocks along the way. Local municipalities and assessment review boards are typically staffed for only 5% of the population to appeal, and like many property owners, they too are trying to hold on to every dollar. By lowering your property tax, this equates to lower tax revenue for local governments. While I am not certain if it is by design, or simply that assessment departments are understaffed, but many of us will find that our tax appeals will not be as efficient or accurate as we would like in many parts of the country.
There may be no surefire method to appealing your latest property tax assessment, but the best way to prepare for what may be a difficult battle is to have substantial evidence of your property's current market value. The days of getting a few comparable sales from your friend or cousin who works as a part-time real estate agent and mailing them to your assessor are now a relic of the past. In many cities, it seems like no amount of convincing will cut through the red tape and get your taxes lowered. In any case, having a licensed appraiser or seasoned real estate broker will prove to be the most effective ammunition to appeal your tax. Review boards are looking for any reason to deny your case, and many will consider independent expert evidence, but not your opinion.
The site LowTaxRate.com lists experienced, and more importantly, licensed professionals in your area that can help compile valuation advice; they may even help you with the paperwork. Ultimately, you should have all of your paperwork organized and complete. To give yourself the greatest chance for success, you should have independent valuation advice from a local professional. While these individuals do not work for free, their fees are usually well worth the investment and can pay dividends for years to come.
Above all, it is important to remember that it is up to you to make certain you are assessed fairly and that you have the right to challenge your property tax assessment.
Ryan Richmond is vice president of Trowbridge Realty in Detroit, MI and one of the founders of LowTaxRate.com and Property Tax Experts, Inc., a national organization of real estate and tax experts.
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