- Should I Refinance?Interest rates have crept up, but refinancing may make sense for you.
- Mortgage CalculatorPurchase price, interest rate, taxes and PMI determine your monthly payment.
- Rent Vs. BuyFind out if owning a home will save you money.
By Geoff Williams, FrontDoor.com | Published: 4/02/2009
The Homework
Either way, alone or with a hired gun, you're going to have to get some things together to prove that your house isn't the house it used to be. Things like a real estate appraisal, which you can get from, naturally, a real estate appraiser (get a referral or try the American Society of Appraisers or Appraisal Institute). You can expect to pay anywhere from $100 to $500, depending on the size of your home. The pricier the home, the more you'll pay, but it shouldn't be more than $1,000. Still, right there, you have to ask yourself if you're going to spend $500 to save yourself $400.
That said, there's a way around hiring an appraiser, says Gorry. At least that's how it works -- altogether now -- in Arizona. The best way is the sales approach, says Gorry, which is when you collect market comparisons of similar and recent comparable sales, information that your local real estate agent has. Even if you get an appraisal, it wouldn't be a bad idea to also have that information.
And if the reason you know your house isn't worth what it once was is that gaping hole that's still in your upstairs bedroom from that freak meteor shower, you'll want to bring along any proof of structural damage. Even if there is no damage, provided you think visuals back up your case, taking along photos of your house can be a prudent move as well.
The Process Itself
Ultimately, not the county assessor but a board of review (which works independently from the assessor or auditor's office) will decide your fate. Now, they don't have the power to raise or lower taxes, just to determine the worth of your property, which means you shouldn't yell at them if you aren't a fan of the IRS. The people on the review board are usually composed of three to five members throughout your county and who are familiar with local market conditions and trends. If you're appealing because of the 23 foreclosed homes in your neighborhood and the pack of wolves roaming through the uncut, unkempt lawns, they know all about it.
As a precaution, Agetstein suggests asking for a copy of the assessor's worksheet, so you can see what they based their assessments on. "They may say you have four bathrooms when you actually have two and a half," says Agetstein. "Or they might say you have a finished basement. There are a number of things that potentially they might have wrong that could help you in the appeal process."
But while you can expect the review boards to do their jobs impartially and professionally (and if they come down against you, you should have the chance to appeal their verdict), "they're not just going to roll over and give in," says Agetstein. After all, property taxes are one of the county's main revenue-generators.
Indeed. As Vic Masi, a Realtor in the South Jersey and Philadelphia region, wryly observes of his own community, "Strangely enough, when the height of the market hit in late 2005 and '06, the township was quick to reassess all our properties and issued a hefty increase at 8 percent of the then current tax bill, but now that home prices are off by 20 percent from that time, they refuse to lower the taxes."
And even if you do get your township to recognize that your property is worth less, Masi says, "All they do is change the rate that is multiplied per thousand and get the same dollar amount."
Or, as Agetstein points out, due to the complex nature of the way everything is structured, you may get the property value lowered but not enough to actually lower the tax. In that case, says Agetstein, "You may win the battle, but still lose the war."
But you're still better off than meeting an untimely end at the fangs of a wind spider.
BACK: How property taxes are calculated and why you may want to appeal them >>More Real Estate Tax Tips:
