My property tax assessment appeal
Posted by Mike Sylvester - 8/26/09 @ 7:30 pm - Filed Under Featured, Local Politics
I previously posted about my the 2008 assessment on my house that is payable in 2009.
I felt that the Allen County Assessor placed a value on my house that was too high by at least $10,000.
With that in mind I hired a residential real estate appraiser and asked him to appraise my property. I learned something during this process; I knew that the 2009 assessment was for the appraised value in 2008; however, I did not know that the assessment was based on the value of the property on 3/1/08.
The assessor I hired came up with an estimated assessed value that was in line with the assessment.
I now will obviously not appeal my property tax assessment.
Mike Sylvester
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13 Responses to “My property tax assessment appeal”
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Mike-The assessor’s office tells me that an appraisal has to have been done in 2007 to make any difference. They also say that a “comparative house” which resold in 2008 or 2009 doesn’t matter-only sales in 2006 or 2007 count. One of the comparables for my house was bought in 2007 for 225M and has been for resale for over 15 months at 210M but they say that does not matter-only 2006 or 2007 sales count.Pay up buddy!!
As for an independent appraiser, that may be very difficult to find. Some number of decades ago, I learned that appraisers do not do independent appraisals when buying a home. All they do in most cases, not all is to inform the bank of a minimum value, not the nominal value. In the case of mortgages, they nearly all equal the amount of the sales price. This is changing after the subprime melt down.
With the Allen County on-line tax assessment site, I would think it difficult to find an independent appraiser who did not look at the assessment to begin with. Had you found your appraisal to be lower, would the appraiser go to bat for you? I would not call it a “club”, but I do think appraisers tend to stick together.
Lockwood/Mike
A very good attorney once told me. “Never take legal advice from the opposing party”. The county/township assessor is the opposing party. A tax appeal pit’s you against them and ultimately points out what a crappy job they are doing.
An appraisal can be for the current market value (usually used for mortgage purposes), or retrospective market value. An appraisal can be performed on your house today for a retrospective value of 2007. By using comparable sales of the time period and adjusting to the home’s condition in that time period the value “as of” any date can be obtained. The date of the assessment is relevant because they are basing your assessed value on the date “as of” 03/01/07. Two years ago the date of the appraisal did not matter because a current appraisal was likely higher in value than an appraisal two years ago. In 2008 and 2009 real estate values have declined for the first time in 20-30 years. The value in 2008 and 2009 and likely 2010 will be lower than in 2006 and 2007, but in many cases the assessor has still over valued the home even with the decline in value. What will be interesting is to see if the assessor will lower the assessment in 2008, 09 and 10.
William
All appraisers are independent third parties. There is no such thing as “minimum value or nominal value. Appraisers do perform independently when appraising for purchases and tax assessments. Because an appraiser is in fact an independent third party there is no time an appraiser can legally “go to bat” for you. It is a violation of federal law for an appraiser to perform any market value appraisal and be an advocate of any thing other than his own opinion of value. Many appraisals are close to the purchase price, not because the appraiser knows the sales price, but because there is a buyer and a seller, most times represented by agents, acting in their own best interest in negotiating a purchase price. That is by definition market value. There are occasions when the sale price is way off. There are thousands of real estate sales per year killed by appraisals coming in below the sales price. When this happens the sales either dies, or the sale price is readjusted to the appraised value.
JON So the tax assessors word is law but the appraiser cannot even be asked to “Professionally” tell the tax court their opinion? And yet the tax assessors opinion is law! You are right they are the opposing party!
Jon.
The township assessor rep tells me I would have to have an appraisal done in 2007 for it to be valid. I have found so many errors in my appraisal and the “comparable property sales” from 2006 and 2007 that I am considering going before the appeals Board. My attic which has a playroom finished is shown as 1150 sq. ft but is only 525sq ft. They say they have to come and measure from the inside and check everything on the inside as well. I don’t really want them poking around in my house but will allow it if need be, Any thoughts or advice and what should an appraisal cost? Thanks.
Mark,
That’s just it Mark the Assessor’s word is not law. The state law indicates that they must assess the property according to market value. Unless there is a recent sale market value is a mater of opinion. You can have your property appraised by a licensed appraiser and that appraiser can testify in a tax appeal as to what his opinion of value is. The significance is that he is testifying as to what his opinion is. He is not in your corner or the assessor’s corner. If the appraiser is also a certified class II assessor he can represent you as your attorney in fact in the appeal process, but then he is no longer a independant third party and must sub out the appraisal.
Lockwood…call me ASAP I can help you out.
“I don’t really want them poking around in my house but will allow it if need be, Any thoughts or advice…”
Yes, put away all valuable items and don’t clean the house for a week beforehand. Also, wear old ragged clothing. If the government thinks you’ve got money, they’re going to find a way to take it!
“Yes, put away all valuable items and don’t clean the house for a week beforehand. Also, wear old ragged clothing. If the government thinks you’ve got money, they’re going to find a way to take it!”
Advice from a true sage!!
Move to the South Side. Phil and I like it here. I spend more on cat food than I do on property taxes. Phil likely spends more on ammunition than on property taxes.
I’ve got two cats though, so it’s pretty close on cat food versus ammunition.
Mike, were you able to successfully get your assessed value lowered? I have had many complaints recently in regards to the assessed value of properties, but have yet to speak with anyone with any amount of success in getting this done.
Courtney,
I have gotten my assesmment lowered once during an appeal.
I have heard that if you get an independent 3rd party appraisal and submit it then you will win about every time.
Mike
Mike,
I and a group of my neighbors in Wildwood Park have done just what you say. We got appraisals done and got reductions of 15-25%. None that I have heard from failed to get some relief. If you know who did appraisals for others in your area I would suggest using that person or firm. Appraisals are available for $250-400.