Taxes are one of life’s constants, but the amount of taxes paid is not. Property tax appeals ensure that valuation figures are never set in stone—as long as one exercises their right to appeal an incorrect assessment. The appeal process begins with a simple property tax assessment appeal letter. While some homeowners choose to handle the appeal on their own, others often choose to pay a third-party property tax appeal service to do it on their behalf for a nominal charge.
Reasons to take property tax appeal
No one likes paying property taxes, but they serve a vital part by funding schools and other services in their city and county. One can question the county’s taxable value if they disagree with it by filing a property tax appeal. It is sometimes referred to as a property tax protest. A successful appeal results in reduced property taxes and an adjusted appraised value. Here are two prime reasons-
The property is overvalued in comparison to similar properties in the area.
One can appeal if their home is overvalued than nearby houses of a similar type. A house’s fair market value, or the expected value of property selling, is not necessarily the same as its tax-appraised value. The evaluation, however, shouldn’t be higher than the fair market value.
The evaluation has an error.
A county appraisal district sets values for a property on the factors like size and renovation(s) it has. Swimming pools, garages, and other facilities are also taken into consideration. Let’s say a house has two bedrooms, but the tax appraisal claims it has three. One can file an appeal to fix any errors in the appraisal if it inaccurately describes the property.
Reasons To Hire Property Tax Consultants
Filing a property tax appeal is not rocket science. However, a lot of time and effort can be saved by having someone else handle it. Professional property tax consultants are experienced and knowledgeable enough to represent homeowners in appeals. Many tax consultants charge a commission based on how much the tax bill can be lowered. This is called a “contingency fee” because they only get paid if the appeal gets successfully acknowledged by the officials. On the other hand, some companies have a flat rate for the property tax appeal service.
Property tax appeal focuses on three valuations approaches- The Income Approach (commercial grade properties), the Cost Approach, and the Market/Sales Approach. A professional property tax consultant is equipped with the skills to take a closer look at the current appraisal situation for the property to optimize property tax deductions. A property tax expert can help reduce excessive property tax bills since they have a good grasp of property regulations and real estate appraisal.
Getting a quick response while dealing with departmental bureaucracy is challenging. A property tax expert will help solve a high property tax bill even if the appraiser’s office is not always approachable. He/she will represent clients at Appraisal, Analyze Board hearings, draft evaluations, negotiate value reductions, review proposed values, make objections, attend hearings, and appeal the board’s decision.
Self-filing a property tax appeal comes with complications. One may not be aware of all the laws and regulations related to property taxes. Furthermore, there is always a risk of missing a deadline for lodging a property tax appeal. However, with a property tax appeal service, one can take advantage of all applicable property tax savings.