Last week, we stressed the importance of evaluating, and potentially appealing, property tax assessments. After an assessment notice is sent out, there is usually a ...
Last week, we stressed the importance of evaluating, and potentially appealing, property tax assessments. After an assessment notice is sent out, there is usually a short window for a property owner or their representative to file an appeal. The appeal process, for the most part, is a three-tiered process:
When appealing an assessment, there are three approaches to determine the value of real estate:
- Cost: The estimated material and labor costs needed to replace a building with a similar one. If the building was not recently constructed, the cost must consider all forms of accrued deprecation present.
- Market: The predicted price a property would bring on the open market in a transaction between a willing, informed, and knowledgeable buyer and seller, using sales of other like properties, in order to determine the value.
- Income: The consideration of typical income and expenses, along with financial returns, a buyer would expect for a certain property type.
Our property tax team, led by Jack Schindler, utilize these valuation approaches and other metrics to ascertain whether a property might have been overvalued by an assessor. Our team will work directly with the assessor to negotiate a reasonable property value.