How to Challenge Property Value Assessments
With falling real estate prices, homeowners may find that the property valuations on their homes have not followed pace. It's a good idea to keep a close eye on the valuations on your property tax statements to see if they have remained at higher levels. If so, you can research the procedure for challenging that valuation before the property tax board in your county. You can hire a lawyer who specializes in assisting homeowners with property value challenges, or you can choose to make the challenge yourself.
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Instructions
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Go over your property valuation document carefully. Assessments may contain errors affecting the value, such as the wrong number of bedrooms or bathrooms, or incorrect information about other structures on the property.
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Request copies of comparable sales information that were used for the valuation. Examine these documents carefully to see if the properties truly were similar, or if they possess differences in features that might affect the market value.
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Search your county's property records for the sale prices of similar properties in your neighborhood. These are public records. Compile a list of properties as similar to your own as possible. If you cannot find properties in your area, you may have to search other areas to get information on similar types of housing, but be prepared to back up any claims for a lower valuation for your own neighborhood. Be aware that in some states, the different valuations between two similar houses can be dramatic because of certain legal requirements. California, for instance, allows a 2% rise in valuation which is only adjusted to current market value when the property is sold. Therefore, someone who has been in their home for 25 years will pay much less than someone who has recently bought their property in the same neighborhood.
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Go to your county website to download forms you need to challenge the valuation. This site may have advice on acceptable records for proving value or time limits on challenges. Challenges of valuations may only be accepted for short periods, for instance, between January 1st and March 31st. Usually, challenges for property valuations cover the previous year, so do not expect to receive refunds for valuations going further back to other years.
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Compile your data. Put together a packet of information to make your case, including recent selling prices of property in your area, your argument on why your property should be valued lower, and supporting photographs. If there are particular environmental considerations for a lower valuation, like a tendency to flood during rainy periods, make sure you have evidence to prove it. You may wish to get your property professionally appraised to support your claim.
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Present your case to your county assessment board or board of commissioners. Do not plead inability to pay. The board will only consider the facts of valuation. If they do not agree to lower your assessment, find out what further administrative recourse you may have to continue your challenge.
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If you are not satisfied with the decision of the county assessment board, consider futher action. You may have recourse in the court system. Consult a lawyer who specializes in property assessment cases.
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Tips & Warnings
You will be responsible for paying assessed property taxes even while your challenge is pending. Interest and penalties will be applied to unpaid taxes.
