Dimension Property

Did you know that 60% of all real property owners are over assessed by their city?  And more disturbing, less than 2% of all tax payers appeal their property taxes?  Of the 2% that do actually appeal 70% of them win some type of real property tax reduction.

If you think you might be over assessed, you probably are and it is well worth your time to continue to research and investigate if you have a case.  The potential savings range from $200 – $3,000 per year for home owners and much more for commercial property owners.  The savings depend on a number of different factors including the value of your property, the tax rate of your city, the amount your property is over assessed by, etc.

Real Property Tax Reduction

Getting a real property tax reduction is really not complicated, and should only take a home owner an afternoon or two to really get an adequate knowledge of the process and how to present your appeal.  Among the various details that owners needs to understand is how to select the right comparable recent sales (Comps), as this is the “meat” of most appeals.  In other words, most owners are appealing their property taxes under the assumption that they are over assessed.  You need to prove this by showing other similar properties that have sold, for less than what your city claims your property is worth.

As you may suspect this can get complicated as cities get “picky” with what properties they are willing to use.  And knowing how to pick the right comps for a relatively inexperienced property owner can be difficult.  For example some cities will not allow you to use comps from properties that sold under “distressed” situations.     

Real Property Tax Appeal

There are other issues besides just comps that owners can dispute.  For example the easiest way to get a real property tax reduction is by showing a mistake made by the assessor.  For example, say you discover that your city recorded your house with 20% more living space than is actually has.  You could easily dispute this.  There are many other mistakes that you should very carefully examine.  Keep in mind that assessors are often under qualified for that position as they are commonly elected officials that may not have any back ground in appraising properties.  Also they are often over worked being responsible for tens of thousands of properties which is daunting task for anyone, no matter the credentials.   

All in all, without sounding overly cynical, owners should be aware that your city does not want to give you a reduction.  It’s money out of their pocket.  One of the biggest mistakes that owners make is failing to abide by the technicalities of the process.  Like having the forms filled out correctly and or being late to the appeal meeting, among many others.  Cities are looking for technicalities to either dismiss your appeal or give you less than a reduction than you deserve; so you need to be diligent and detailed oriented.