How a Real Estate Appraisal for Tax Appeal Can Help You

Let’s face it no one loves paying property taxes. And when you open that tax bill and feel like you're paying way too much, you're not alone. Many homeowners have been in your shoes, staring at a number that just doesn’t seem to match up with what their property is actually worth. The good news? You can do something about it, and it all starts with a real estate appraisal for tax appeal purposes.

Challenge an Inaccurate Tax Assessment

Ever heard of someone whose property was assessed as if it had a new addition when it didn’t? It happens more often than you might think. Jane, a homeowner I worked with in Florida, was stunned when her property taxes shot up unexpectedly. It turned out that the county had mistakenly recorded her porch as additional living space, inflating the total square footage of her home. After getting an appraisal that corrected this error, she successfully appealed and brought her taxes back down to a fair amount.

How would you feel if a simple mistake like that cost you hundreds or thousands of dollars each year? With a professional appraisal in hand, you have concrete data to challenge those inaccuracies. It’s no longer a debate but a fact-based conversation.

Save Money

Let’s not forget the bottom line which is saving money. Imagine if you could shave off $1,000+ a year from your property taxes. Wouldn't you love to use that extra cash for a vacation, home improvements, or even investments? I remember when I helped a neighbor through the tax appeal process. He was initially hesitant, assuming like many of us that the county had done everything correctly. But after getting an appraisal and realizing he was overpaying by nearly $3,000 a year, the look of relief on his face said it all. That extra cash meant a long-awaited family trip to St. Thomas was finally something he could afford.

The cost of an appraisal is typically a small fraction of what you stand to save over time. So, why not think of it as an investment in your financial future?

Understand Your Property’s True Value

How long has it been since you checked the current value of your home? The market can change drastically, and your property’s value may have shifted too. Maybe you’ve added some improvements, like a pool or a new kitchen, or maybe the neighborhood has seen some changes that impact value.

One person I met added significant landscaping to his backyard, thinking it would boost his home’s value. However, when he had an appraisal done, he discovered the market had shifted and buyers in his area were prioritizing indoor upgrades over outdoor features. Knowing his true property value not only helped him with his tax appeal but also informed him on how to approach future home improvements.

Wouldn’t it be better to have an accurate, up-to-date understanding of your property’s worth before assuming anything?

A Professional's Perspective

The beauty of working with an appraiser is that you're getting a detailed, unbiased opinion from a professional who knows the local market inside and out. While a tax assessor might take a broader, less personalized approach, your appraiser is looking at the unique features of your property, everything from your upgraded kitchen to the overall condition of your home.

So, the question is: Is the tax assessor truly aware of your home’s quality and condition when determining its value, or are they simply making assumptions?

Leverage Comparable Sales

An appraisal will also include a look at comparable properties, often referred to as “comps.” These are properties similar to yours that have sold recently. In many cases, tax assessments might not have the most up-to-date data on recent sales, especially if the market has cooled off a bit.

Consider a couple who were stunned by a high tax bill despite their neighborhood's real estate market slowing down. The tax assessor was still relying on outdated market values from the previous boom, overlooking recent declines. After obtaining an appraisal that accurately reflected current market conditions as of the January 1 effective date for tax valuations, they found that their home had been overvalued by the assessor. Armed with this professional opinion, they successfully appealed and significantly reduced their tax burden.

Do you know if your tax assessment reflects the latest comparable sales, or are you being taxed based on outdated information?

Peace of Mind

Even if you go through the process and find that your tax assessment is fair, having an appraisal can provide peace of mind. You’ll know exactly where you stand, and you won’t have to wonder if you’re overpaying each year. Plus, if the market shifts again, you’ll be better positioned to understand how those changes might affect your taxes in the future.

Imagine the relief of knowing you’ve done your homework and aren’t leaving money on the table or worse, paying more than your fair share.

Wouldn’t you rather have certainty than doubt when it comes to something as important as your property taxes?