It Pays To Appeal

[Bruce Wrenn]

Recently got our tax evaluation. Way over valued from actual market value due to several factors, Went to length explaining why I thought it was over valued as to true market value. Got a letter back today showing that evaluation was reduced by more than 50%. That means my tax bill will also be reduced by 50%. Only had I appealed, would I have gotten this reduction. Like the old saying says,"The wheel that squeaks loudest gets the grease first."

[Warren Lake]

My friend is a big deal agent but more developer and she runs 20 corps. She did my appeal and my taxes were lowered over 33 percent. She also had my mohters taxes lowered it was appealed once and went back and they agreed.

Then I went with her when she did her own. She knew 10 times what the City person did but she got no where, I could see the lady judge just judged her and didnt even listen. There are no gaurantees the lady we got that came here understood and was a normal human not a beoch.

[Jerry Thompson]

The answer is no unless you ask.

[Frederick Skelly]

I agree you should try. It may depend on where you live - some states/counties may do a better job appraising than others. My Dad challenged his valuation 3 years ago. He did a lot of homework to prepare for the meeting, even working the numbers a couple different ways. When they sat down to talk, Dad’s estimates and the tax office were within a couple thousand of each other.

He did get a small reduction by bringing pics of the kitchen and bathrooms, showing they were “original” and hadn’t been updated in 25 years. (His point was that the comps used to value his home were from houses that had been freshened/updated - making them more desirable- and so he couldn’t expect to get what they did.)

[Brian Elfert]

I've appealed a few times, but my appeals were less than ten thousand dollars, not 50%. I won every time.

[Bruce Wrenn]

I've appealed a few times, but my appeals were less than ten thousand dollars, not 50%. I won every time.Mine was over a quarter million. Now my corrected tax value is less than it was four years ago, which means I have been over paying for the last four years.

[glenn bradley]

Mine was over a quarter million. Now my corrected tax value is less than it was four years ago, which means I have been over paying for the last four years.

No problem. I'm sure they will get that right back to you ASAP.

[Tom Bender]

We had our house built in '86. In about '89 the assessment went up more than usual. I asked to see it. It showed a finished basement. It was not. Seems they don't even do a drive by reassessment normally, just assume we did the upgrade. They came out and re-assesed lower, an embarrassed and generously lower number. Other than that we are protected by a state rule that limits them to inflation only. If I sold it the next owner would pay about double the taxes based on purchase price. Win some, loose some.

[George Yetka]

I have a friend who was a tax assessor he said that the best practice is to be friendly and let them see everything when they come around every few years. This is a mid level job and they are paid 10-15 a house and are not the person who is doing the adjusting. They take note of whats there and thats it. When people got nasty they would mark you down as new kitchen/new bathrooms/ finished basement/ etc and it would drive assessment value. Dont fight that guy do what you did and fight the assessment

[Tom M King]

It doesn't do any good here. All the appraisals are way lower than any real value. They just adjust the rate to get the amount of money they want for the county. No one would dare appeal an appraised value. One year all the lake property went up 400%, but it was still way less than the real value. They adjusted the rate down a little bit, but we were still paying double of what it was before.

[Bruce Wrenn]

Our biggie is no well on this lot. Twenty five wells in neighborhood, only two of which produce over a gallon a minute. That means only an 8% chance of hitting enough water on first try, with a try (300 foot well, 60' of casing and pump and PERMIT) costing right around 25K. Second is drive way is thru lot next door. Too install drive way will cost around 100K. That's why I bought the lot next door to begin with, existing roadway in. Roof, average age is 39 years. Shingles were originally John Mansville. Only two leaks over the years, and both were at penetrations thru roof. Replacement cost for both house and garage right at 40K. Appraisals were done by someone sitting at desk, not in the field. My monthly tax bill is more than my mortgage was, which included both insurance and taxes.

[Brian Elfert]

Where I live they split the city up into five sections and the assessor does visits to one section each year. I believe that includes interior inspections too, but you can decline the interior inspection. However, if you decline the interior inspection then the assessor basically has to guess on the condition of the interior. They might know that most houses in your area have remodeled kitchens and bathrooms so they will assume you have that too if you don't allow them in. It is also likely if you deny them access that you are hiding things that would increase your home's value.

A lot of valuations are done by computer just like Zillow and the other websites that show home value. The city or county has a bunch of information about your house and they use sales of comparable homes in the area to estimate the value of your house.

[Bill Dufour]

Rumor for years has been the official appraisal is maybe 10-20% below true market rate. If you complain they will come out and raise it to true market rate.
Bill D

[Jim Becker]

Rumor for years has been the official appraisal is maybe 10-20% below true market rate. If you complain they will come out and raise it to true market rate.
Bill D
Tax appraisal and market value are "yugely" different here. We paid $580K for this property. Current market value is approaching $700K three years later. When the reassessment came in last year after my shop build (automatic because the permit application had the cost required to be on it), it went from $40K to $44K for the tax assessment which is what the taxes are calculated at. Taxes are just over $8K per year currently after a $450 increase post shop build. All of this stuff is very "local"; different states, counties and other levels of jurisdictions come into play in how things are done.

[Bill Dufour]

Jim are you saying your house and shop are appraised at 44K? Even though you paid more then ten times that much a few years ago?
Bill D

[Tom M King]

It's not a factor over ten here, but it is by five or six. Property tax is our largest expense.

[Ron Selzer]

"Taxes are just over $8K "
And I am complaining about $2.4k on my house appraised 2 yrs ago at $250k

[Jim Becker]

Jim are you saying your house and shop are appraised at 44K? Even though you paid more then ten times that much a few years ago?
Bill D
For tax "assessment", that's how they do it here. 44340 exactly on the current bill I have literally in my hand. "Assessment" has nothing to do with market property value here. I have no idea what the formula is. It's been that way for all four properties I've owned in my lifetime. Interestingly, the "assessment" here is nearly the same as it was for the previous property which was four acres instead of a half acre and 4200 sq ft (livable) plus outbuilding instead of 1850 sq ft plus outbuilding. Different jurisdiction, however.

[Jim Becker]

"Taxes are just over $8K "
And I am complaining about $2.4k on my house appraised 2 yrs ago at $250k
Talk to the folks in Northern NJ and other areas near NYC... ;) Dirt cheap here compared to there!

[Bruce Wrenn]

Talk to the folks in Northern NJ and other areas near NYC... ;) Dirt cheap here compared to there!That's why they are moving to North Carolina. You never own any property, only rent from local taxing body. Miss one payment and you are on the street.

[Brian Elfert]

That's why they are moving to North Carolina. You never own any property, only rent from local taxing body. Miss one payment and you are on the street.

Tax forfeitures here in Minnesota generally take several years of missed payments before you lose the property. You certainly aren't out on the street for missing one payment.

[Brian Elfert]

How properties are valued for property tax purposes varies from place to place. I know in Minnesota state law determines how properties are valued for property tax purposes. In Minnesota, the market value for taxes is supposed to mirror what the property would sell for on the open market. The taxable market value is the market value minus any homestead credits.

I know a lot of places have crazy rules like each bedroom increases property taxes. I have heard of people leaving off closets and calling the rooms dens or storage rooms until the occupancy permit is issued, and then then they go back and add closets to make bedrooms. It is fairly common to hear about people not wanting to do certain home improvements because it will increase property taxes.