Appealing a Property Value Assessment

[davelj]

[quote=ljinvestor] So you know, price per square foot is not an acceptable appraisal methodology. [/quote]

Ummm… I will agree that price per square foot ALONE is not an acceptable appraisal methodology. But if you look at most appraisals – which are a complete joke – just about ALL they focus on is price per square foot with “adjustments.” Now I don’t think this is the right way to appraise homes, but this is the way it is. So, I’m a little baffled by the appraiser’s comments to you on this point.

Personally, I think an income (re: rental equivalent) component should be integrated into SFR appraisals, but that will happen when pigs fly.

[pencilneck]

I think part of this depends on the improvements.

It seems to me that the property should be assessed more or less as it was when the property changed hands. $80k in improvements shouldn’t be a part of the original assessment.

Unless the $80k in improvements were new construction (or of an extent that would trigger reassessment). If you added to the house, then yes the addition should be assessed at fair market value. $80k in construction could easily raise the fair market value more than $80k. Although it still seems unlikely that $80k in construction would add $350k in value.

Keep in mind that I know next to nothing about appraisals or tax law. Just enough to get myself into trouble.

[pencilneck]

I think part of this depends on the improvements.

It seems to me that the property should be assessed more or less as it was when the property changed hands. $80k in improvements shouldn’t be a part of the original assessment.

Unless the $80k in improvements were new construction (or of an extent that would trigger reassessment). If you added to the house, then yes the addition should be assessed at fair market value. $80k in construction could easily raise the fair market value more than $80k. Although it still seems unlikely that $80k in construction would add $350k in value.

Keep in mind that I know next to nothing about appraisals or tax law. Just enough to get myself into trouble.

[pencilneck]

I think part of this depends on the improvements.

It seems to me that the property should be assessed more or less as it was when the property changed hands. $80k in improvements shouldn’t be a part of the original assessment.

Unless the $80k in improvements were new construction (or of an extent that would trigger reassessment). If you added to the house, then yes the addition should be assessed at fair market value. $80k in construction could easily raise the fair market value more than $80k. Although it still seems unlikely that $80k in construction would add $350k in value.

Keep in mind that I know next to nothing about appraisals or tax law. Just enough to get myself into trouble.

[pencilneck]

I think part of this depends on the improvements.

It seems to me that the property should be assessed more or less as it was when the property changed hands. $80k in improvements shouldn’t be a part of the original assessment.

Unless the $80k in improvements were new construction (or of an extent that would trigger reassessment). If you added to the house, then yes the addition should be assessed at fair market value. $80k in construction could easily raise the fair market value more than $80k. Although it still seems unlikely that $80k in construction would add $350k in value.

Keep in mind that I know next to nothing about appraisals or tax law. Just enough to get myself into trouble.

[pencilneck]

I think part of this depends on the improvements.

It seems to me that the property should be assessed more or less as it was when the property changed hands. $80k in improvements shouldn’t be a part of the original assessment.

Unless the $80k in improvements were new construction (or of an extent that would trigger reassessment). If you added to the house, then yes the addition should be assessed at fair market value. $80k in construction could easily raise the fair market value more than $80k. Although it still seems unlikely that $80k in construction would add $350k in value.

Keep in mind that I know next to nothing about appraisals or tax law. Just enough to get myself into trouble.

[EconProf]

I’ve been through this process several times plus once taught Public Finance, so can offer you this:
Pencilneck is right–80k spent on fixup, cleanup, etc. should only add to assessed value to the extent it was an addition. Assessor’s don’t put much value into condition–it is largely a matter of price/sf.
You have documented well the fact that you are overassessed, i.e., it was an open market, arm’s length transaction with sufficient market exposure. Stick to your guns–county assessors rely on bluff and intimidation these days.
Immediately appeal and demand a hearing. Believe me, they will cave beforehand. Once you file for a hearing, they have, by law, 2 years to give it to you. They are so backed up–by tens of thousands–and they can only get 2 – 4 hearings in per hour, that probably less than 1% actually make it to hearing. Instead, they will call you a few weeks before the hearing and offer to stipulate, that is, compromise. Even that offer will not be everything you are asking for, but at least they are ready to seriously compromise on valuation.
Also, the two-year time gap does not mean you shouldn’t file ANOTHER appeal for the interim year. Otherwise they will eventually grant you the lower value for the first year, but not the second year because you technically did not ask for a lower valuation for that year.
Yeah, it is pretty sleazy on their part. They are extracting what they can from the taxpayer by fair means or foul. But this did actually did happen to me–they only granted the lower valuation for the year of the appeal, not the second year (at a time of declining market values!), so the $1200 or so I eventually extracted from them in a refund should have been about twice as large.
Also, to everyone here thinking of appealing, I believe you only have till the end of November to file your appeal. It is a simple one-page form available on line or at the County Assessor’s Office. It requires you to do some homework & get comps, so cozy up to your favorite RE agent to get some documentation for your claim.

[EconProf]

I’ve been through this process several times plus once taught Public Finance, so can offer you this:
Pencilneck is right–80k spent on fixup, cleanup, etc. should only add to assessed value to the extent it was an addition. Assessor’s don’t put much value into condition–it is largely a matter of price/sf.
You have documented well the fact that you are overassessed, i.e., it was an open market, arm’s length transaction with sufficient market exposure. Stick to your guns–county assessors rely on bluff and intimidation these days.
Immediately appeal and demand a hearing. Believe me, they will cave beforehand. Once you file for a hearing, they have, by law, 2 years to give it to you. They are so backed up–by tens of thousands–and they can only get 2 – 4 hearings in per hour, that probably less than 1% actually make it to hearing. Instead, they will call you a few weeks before the hearing and offer to stipulate, that is, compromise. Even that offer will not be everything you are asking for, but at least they are ready to seriously compromise on valuation.
Also, the two-year time gap does not mean you shouldn’t file ANOTHER appeal for the interim year. Otherwise they will eventually grant you the lower value for the first year, but not the second year because you technically did not ask for a lower valuation for that year.
Yeah, it is pretty sleazy on their part. They are extracting what they can from the taxpayer by fair means or foul. But this did actually did happen to me–they only granted the lower valuation for the year of the appeal, not the second year (at a time of declining market values!), so the $1200 or so I eventually extracted from them in a refund should have been about twice as large.
Also, to everyone here thinking of appealing, I believe you only have till the end of November to file your appeal. It is a simple one-page form available on line or at the County Assessor’s Office. It requires you to do some homework & get comps, so cozy up to your favorite RE agent to get some documentation for your claim.

[EconProf]

I’ve been through this process several times plus once taught Public Finance, so can offer you this:
Pencilneck is right–80k spent on fixup, cleanup, etc. should only add to assessed value to the extent it was an addition. Assessor’s don’t put much value into condition–it is largely a matter of price/sf.
You have documented well the fact that you are overassessed, i.e., it was an open market, arm’s length transaction with sufficient market exposure. Stick to your guns–county assessors rely on bluff and intimidation these days.
Immediately appeal and demand a hearing. Believe me, they will cave beforehand. Once you file for a hearing, they have, by law, 2 years to give it to you. They are so backed up–by tens of thousands–and they can only get 2 – 4 hearings in per hour, that probably less than 1% actually make it to hearing. Instead, they will call you a few weeks before the hearing and offer to stipulate, that is, compromise. Even that offer will not be everything you are asking for, but at least they are ready to seriously compromise on valuation.
Also, the two-year time gap does not mean you shouldn’t file ANOTHER appeal for the interim year. Otherwise they will eventually grant you the lower value for the first year, but not the second year because you technically did not ask for a lower valuation for that year.
Yeah, it is pretty sleazy on their part. They are extracting what they can from the taxpayer by fair means or foul. But this did actually did happen to me–they only granted the lower valuation for the year of the appeal, not the second year (at a time of declining market values!), so the $1200 or so I eventually extracted from them in a refund should have been about twice as large.
Also, to everyone here thinking of appealing, I believe you only have till the end of November to file your appeal. It is a simple one-page form available on line or at the County Assessor’s Office. It requires you to do some homework & get comps, so cozy up to your favorite RE agent to get some documentation for your claim.

[EconProf]

I’ve been through this process several times plus once taught Public Finance, so can offer you this:
Pencilneck is right–80k spent on fixup, cleanup, etc. should only add to assessed value to the extent it was an addition. Assessor’s don’t put much value into condition–it is largely a matter of price/sf.
You have documented well the fact that you are overassessed, i.e., it was an open market, arm’s length transaction with sufficient market exposure. Stick to your guns–county assessors rely on bluff and intimidation these days.
Immediately appeal and demand a hearing. Believe me, they will cave beforehand. Once you file for a hearing, they have, by law, 2 years to give it to you. They are so backed up–by tens of thousands–and they can only get 2 – 4 hearings in per hour, that probably less than 1% actually make it to hearing. Instead, they will call you a few weeks before the hearing and offer to stipulate, that is, compromise. Even that offer will not be everything you are asking for, but at least they are ready to seriously compromise on valuation.
Also, the two-year time gap does not mean you shouldn’t file ANOTHER appeal for the interim year. Otherwise they will eventually grant you the lower value for the first year, but not the second year because you technically did not ask for a lower valuation for that year.
Yeah, it is pretty sleazy on their part. They are extracting what they can from the taxpayer by fair means or foul. But this did actually did happen to me–they only granted the lower valuation for the year of the appeal, not the second year (at a time of declining market values!), so the $1200 or so I eventually extracted from them in a refund should have been about twice as large.
Also, to everyone here thinking of appealing, I believe you only have till the end of November to file your appeal. It is a simple one-page form available on line or at the County Assessor’s Office. It requires you to do some homework & get comps, so cozy up to your favorite RE agent to get some documentation for your claim.

[EconProf]

I’ve been through this process several times plus once taught Public Finance, so can offer you this:
Pencilneck is right–80k spent on fixup, cleanup, etc. should only add to assessed value to the extent it was an addition. Assessor’s don’t put much value into condition–it is largely a matter of price/sf.
You have documented well the fact that you are overassessed, i.e., it was an open market, arm’s length transaction with sufficient market exposure. Stick to your guns–county assessors rely on bluff and intimidation these days.
Immediately appeal and demand a hearing. Believe me, they will cave beforehand. Once you file for a hearing, they have, by law, 2 years to give it to you. They are so backed up–by tens of thousands–and they can only get 2 – 4 hearings in per hour, that probably less than 1% actually make it to hearing. Instead, they will call you a few weeks before the hearing and offer to stipulate, that is, compromise. Even that offer will not be everything you are asking for, but at least they are ready to seriously compromise on valuation.
Also, the two-year time gap does not mean you shouldn’t file ANOTHER appeal for the interim year. Otherwise they will eventually grant you the lower value for the first year, but not the second year because you technically did not ask for a lower valuation for that year.
Yeah, it is pretty sleazy on their part. They are extracting what they can from the taxpayer by fair means or foul. But this did actually did happen to me–they only granted the lower valuation for the year of the appeal, not the second year (at a time of declining market values!), so the $1200 or so I eventually extracted from them in a refund should have been about twice as large.
Also, to everyone here thinking of appealing, I believe you only have till the end of November to file your appeal. It is a simple one-page form available on line or at the County Assessor’s Office. It requires you to do some homework & get comps, so cozy up to your favorite RE agent to get some documentation for your claim.

[joec]

This is pretty interesting. Out of curiosity, do they do the higher assessment to raise more revenue or is it a power trip thing for the assessors?

[joec]

This is pretty interesting. Out of curiosity, do they do the higher assessment to raise more revenue or is it a power trip thing for the assessors?

[joec]

This is pretty interesting. Out of curiosity, do they do the higher assessment to raise more revenue or is it a power trip thing for the assessors?

[joec]

This is pretty interesting. Out of curiosity, do they do the higher assessment to raise more revenue or is it a power trip thing for the assessors?

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