Did you know that 60% of all real estate owners are overvalued by their city? And more concerning, less than 2% of all taxpayers appeal their property taxes? Of the 2% who actually appeal, 70% win some form of real estate tax relief.

If you think it might be overrated, it probably is and it’s worth spending the time to continue digging and digging if you have a case. Potential savings range from $200 to $3,000 per year for homeowners and much more for commercial property owners. Savings depend on a number of different factors, including the value of your property, your city’s tax rate, the amount by which your property is overvalued, etc.

Reduction of taxes on real estate

Getting a real property tax abatement isn’t really complicated, and it should only take a homeowner an afternoon or two to gain a proper understanding of the process and how to file your appeal. Among the various details homeowners need to understand is how to select the correct Comparable Recent Sales (Comps), as this is the “meat” of most attractions. In other words, most homeowners are appealing their property taxes on the assumption that they are overvalued. You must prove this by showing other similar properties that have sold for less than your city claims your property is worth.

As you might suspect, this can get complicated as cities get “picky” about the properties they are willing to use. And knowing how to choose the right offsets for a relatively inexperienced homeowner can be difficult. For example, some cities will not allow you to use offsets on properties that were sold in “distressed” situations.

Real Estate Tax Appeal

There are other issues besides compensation that homeowners can dispute. For example, the easiest way to get a real estate tax abatement is by showing an error made by the appraiser. For example, suppose he discovers that his city registered his house with 20% more living space than it actually has. You could easily dispute this. There are many other errors that you should consider very carefully. Keep in mind that assessors are often not qualified for that position, as they are usually elected officials who may not have a background in property appraisals. Additionally, they are often overworked with responsibility for tens of thousands of properties, which is a daunting task for anyone, regardless of credentials.

Still, without sounding too cynical, landlords should be aware that their city doesn’t want to give them a reduction. It is money from your pocket. One of the biggest mistakes homeowners make is not following the technicalities of the process. Such as having the forms filled out correctly and/or being late for the appeal meeting, among many others. Cities are looking at technicalities to dismiss your appeal or give you less of a reduction than you deserve; so you must be diligent and detail oriented.