Learn why you should protest your property tax assessment. From reducing overinflated valuations to accounting for issues.
Receiving a property tax assessment can feel daunting, especially if the amount seems excessive. But did you know that challenging your assessment could potentially save you thousands? By filing a protest, you ensure your property taxes accurately reflect your home’s true value. In this guide, we’ll cover the top reasons to protest your property tax assessment and help you determine if it’s time to take action.
One of the most common reasons to protest a property tax assessment is overvaluation. If your property has been assessed higher than its market value, you could be paying significantly more than you should in taxes.
•Solution: Research recent sales data for similar properties in your neighborhood to see if your assessment aligns with actual market trends.
• Pro Tip: Use Abode’s Property Tax Savings Calculator to get a better sense of potential savings based on comparable data.
If your home has structural issues or needs repairs, it may not be worth as much as the assessed value suggests. Issues like foundation problems, roof damage, or aging infrastructure can significantly impact a property’s value.
• Example: “My property has foundation cracks that require repair. This reduces its value compared to similar homes in better condition.”
• Action Step: Include repair estimates or contractor quotes when filing your protest to support your claim.
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Real estate markets fluctuate, and a decline in local home prices should be reflected in your assessment. If the market in your area has slowed or if property values are decreasing, your assessment may no longer be accurate.
• Solution: Present recent sales data that demonstrate lower property values in your area.
• Pro Tip: Abode’s monitoring tool provides alerts on changes in local property values, helping you stay informed.
Errors in your property records, like incorrect square footage, number of rooms, or even amenities, can result in an inflated assessment. Double-check your assessment for inaccuracies that could be costing you.
• Example: “The tax assessment lists my home as having four bedrooms, but it only has three. This error inflates my home’s valuation.”
• Action Step: Review your property records, and if you find inaccuracies, include documentation to correct them.
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If there’s recent construction or new businesses nearby, the assessed value may increase based on projected growth in the area. However, if these developments haven’t yet impacted property values or if they negatively affect your quality of life (like increased noise or traffic), you may have grounds to protest.
• Example: “New commercial construction has increased traffic and noise, impacting the desirability and value of my property.”
• Action Step: Document any recent changes in the area and explain how they affect your property’s value.
If your property is located near a highway, power lines, or other elements that could reduce its value, these factors may not be fully considered in the assessment.
• Example: “My property backs up to a busy freeway, which impacts its desirability and should lower its assessed value.”
• Pro Tip: Attach photos or documentation showing the proximity to these unfavorable features to strengthen your case.
If your property tax rate or assessed value increased significantly last year, you might still be paying an inflated rate. This is particularly relevant if you didn’t protest previously, as that assessment might have set an unfair baseline.
• Solution: Reference previous assessments and tax rates to demonstrate the inconsistency.
• Pro Tip: Abode’s app tracks assessment changes year-over-year, helping you spot unusual spikes that warrant a protest.
Many homeowners simply accept their assessments without questioning them, which can lead to years of overpaying. If you’ve never protested your property taxes, now is a great time to start.
• Benefit: Starting a protest establishes a fair assessment baseline, which can prevent future overvaluations.
• Action Step: Review your assessment history, and if you’ve never protested, this could be an opportunity to save.
If one or more of these reasons apply to you, consider filing a protest. Follow these steps to begin:
1. Review Your Assessment: Look for errors and gather comparable sales data.
2. Prepare Supporting Documents: Attach photos, repair estimates, and any other relevant data.
3. File Your Protest: Submit your protest within the deadline provided by your local appraisal district.
Protesting your property tax assessment may seem overwhelming, but it’s worth the effort if it saves you money. By staying informed about your home’s true value, you’ll protect yourself from overpaying. With Abode’s comprehensive home finance tools, you can easily monitor your property’s value, track tax assessments, and receive alerts for potential savings opportunities. Sign up with Abode today to take control of your home finances and keep more money in your pocket.
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