Before anyone begins a real estate tax appeal they should first make sure that they have a case worth pursuing. We offer free tools that will get that job done for you.
We offer these tools that will alert you if you have a profitable property tax appeal case worth your time to pursue for free:
Real Estate Tax Appeal Free Help Guides
- Mind Map Guide – that will guide you through the aspects of a property tax appeal.
- Property Tax adjustment Category Worksheet – that will lay out a worksheet for adjustment differences between your subject homes’ categories and features it possesses or lacks compared to comparable homes.
- Free access To All Comparable Sold Homes – access database of sold homes with square footage and features they possess that are most similar to your subject home in your area for comparison purposes.
Real Estate Valuation
Real estate within a municipality is value assessed on a blanket property tax appeal for that town or county. This kind of real estate valuation appraisal is a very expensive outlay for any town to conduct and might only be done at 8 to 20 or more year intervals.
That job is placed on a bidding system and the low-cost bidder will get the job. Little time can be spent to do a thorough appraisal and many errors result. In fact, it’s stated in Consumers Report that tax records show a 40% error rate exists.
Real Estate Sales Ratio – Equalization Rate
Sales ratio application permit equitable distribution of taxes in taxing districts. The equalized value of a residence for the year that the blanket assessment take place is 100%. As time passes between appraisals, the disparity between these values increases.
For example, years stretched out from the original assessment causing the sales ratio to change. For instance, 6 years after that initial blanket assessment, the sales ratio changed to 90%.
Example: The property tax assessment of $550,000 for their home and the assessment ratio was 90% means that the home was actually priced and taxed for $611,111. Formula: Assessed value ($550,000) divided by sales ratio (90% – note: need to move decimal point over 2 spaces to the left in order to divide) yield the actual valuation for that home that the taxing authority will levy the tax on ($611,111).
Real Estate Tax Appeal Using Comparable Sold Homes
Now that you know the value that you are actually taxed on and what the municipal appraiser says the home is worth, you’ll want to compare your home to other sold homes in your area. We proved access to those data bases to you for free. Visit our home page for access.
If you find that the comparable properties to your home sold for less money than your home, that might indicate that the tax assessor is overcharging you and that you might have a good case that is worth pursuing.
Learn interesting tidbits more about real estate and tax appeals from https://www.houselogic.com/
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