Every year, the county gives you an opportunity to challenge your assessed value (and potentially lower your annual real estate tax bill). Whether it’s an investment property or a primary residence. I’ve actually challenged the assessment of my property values several times, which have been rental properties for the most part.
A few years ago, I bought a rental property for $100,000 (keeping the numbers round for simplicity). One year later, the assessment came out, and it valued my property at $150,000, meaning that I’d pay more in property taxes than I’d expected to. I had paid a little bit under market value for it, but it also needed a bunch of work done.
So I established my case for challenging the assessment—I gathered up some comparable sales that demonstrated my property was not worth as much as the county said. Showing that in its present condition it was worth substantially less. Then I sent that information to the county.
Sure enough, they agreed that my home wasn’t worth that amount, and they ended up reducing their assessment to something closer to the $100,000 I had originally paid for it. The difference saved me about $1,000 per year in property taxes.
Something else to note is that the county can increase the assessed value of your property if it isn’t your primary residence by 10% each year. If it is your primary residence, then they can only increase its assessed value by 3% per year. That can still be a big deal if you own the property for awhile. By challenging the assessment on my property, I saved $1,000 not only that year, but every year after that, and I still own it to this day.
If you’re thinking of challenging your property’s assessed value, now is the right time of year to do so. In August, the county will open up the opportunity for you to submit the application to lower your taxes. The Value Adjustment Board will give you until the middle of September to send in your application, which can be accessed here.
If you’re unsure of the value of your home, reach out to me. Gauging value in real estate is what I do all day long. And, I’d be happy to help you figure out whether challenging your assessed value is worth your time or not.
In the meantime, if you have any other real estate questions, feel free to call/text/email. Hope to hear from you soon!