Money Saving Tips: Your Property Taxes

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A little work can mean a lot of savings! Homeowners can potentially save hundreds or even thousands of dollars each year by taking a little time to review their property tax assessment and following a few simple steps to negotiate a value reduction. What’s the secret to saving money on your property taxes? …Simply put, you must do your “home” work.

Your assessor appraises properties on a mass basis and generally will not value your home in the same manner as an independent appraiser. Assessors are required to perform valuations in a uniform and equal manner and may not recognize legitimate issues or problems which could affect your home’s value. The assessor’s “mass appraisal” techniques often results in unintentional errors in your home’s appraisal.

The first step is to gather the relevant facts. Always measure your home’s square footage. An error in the assessor’s records can cost you year after year. Assessors measure the exterior of your house to determine the area. Remember to separate non-livable areas should as garages, storage areas, basements, and utility rooms. If you need help, consult your contractor, realtor, or the assessor’s office for assistance.

Second, review the sales of comparable homes in your neighborhood. Sales data is the life-blood of any appraiser. If you may need help in obtaining this information, a local realtor can help you gather this information, often in hopes of a future listing from you. Some realtors will perform a “broker’s analysis” of the sales and listing in your neighborhood for a small fee. This information can go a long way in helping you convince the assessor your home is “over-appraised”.

The moment of truth has come. It’s time to call, or better yet, meet with your assessor. Many taxing authorities will allow a homeowner the opportunity to meet informally with the assessor or employee in order to negotiate a value settlement. Be confident, polite, and courteous. Treat them as you would want to be treated. Present the facts you have gathered and listen to the assessors explanations. If the assessor agrees, congratulations, the assessor will provide a quick method to confirm a change in value. If things do not go as you plan, then its time to file a valuation appeal.

Most States have a “board of review” which allows homeowners an opportunity to present their facts to an independent panel at quasi-judicial hearings which are less formal than a courtroom. You will be assigned a date and time to appear. At the hearing, you and the assessor will each be allowed an opportunity to present value evidence. The sad fact is that most homeowners do not show up for their hearings! Just attending the hearing increases your chances of a reduction. Most panel members are also homeowners, and will understand your legitimate issues as long as you present them in a factual and respectful manner. At the end of the hearing, the panel will make a decision regarding the value of your property. Most states allow you to appeal the review board’s decision to district court and many have a low-cost arbitration option.

Congratulations! Win or loose, you have participated in the process. You have received a great education in the workings of local government, and have possibly saved yourself great deal of property tax savings to boot! If you did not win, remember, each year’s value stands on its own; Try again next year, your now an expert!


by Jerry Mac