Lower Your Property Taxes

To win such a challenge, you must be able to show that your property is overvalued in comparison with other similar properties in your area.

Common Causes of Incorrect Valuation

• Errors in tax records - property may be listed as larger than actual size or in better condition.
• Price paid or appraised value lower than assessed value - mortgage refinancing appraisals are not necessarily valid or acceptable
• Damage to property subsequent to establishing assessed value
• Net income inaccuracy on investment property
• Exemptions, abatements, or credits not utilized
• Environmental hazards not taken into account at valuation

The place to start in your quest is to determine the relationship of tax valuation to current market value. Compare this number to other similar properties recently sold in your area. Sale information is available in the public records for your municipality. In choosing properties for comparison, use the guidelines professional appraisers use:

• Located within 1 mile - the closer the better
• Similar in size and design - a split level is not the same as a colonial
• Must have been sold within the last six months
• Arms-length transactions only - family sales for $1 do not count
• Within the same school district
• Within the same public service area
• Approximately the same lot size.
• Adjust for special terms or buyer incentives
• If the total adjustment is over 10% of the sale price, plus or minus, disqualify the comparison.

If your case is strong enough, you may be able to simply approach the assessor with your data. If in doubt, consult an attorney about litigation. Whatever you do, make sure you have the facts.

If you feel you have a case but do not want to tackle this project yourself, International Appraisal Associates offers an alternative service. To visit their Web site, click on the button below.

All information is subject to change without notice and is believed to be accurate but not guaranteed. Links are provided as a convenience only. What you may find there is not guaranteed or warranted by Breeden Realtors.