Are You Over Assessed?

Over the last half decade or so, it has been a real roller coaster for real property owners. An unusual spike in demand and easy money propelled values to historic highs versus the moving average only to come crashing down regressing to values of a decade ago in some cases. Among the carnage left to deal with for property owners is an assault on property rights, historically tight credit and massive properties in distress dragging down the value of your property. You are wondering where to hide!

For property owners, few steps can now be taken to reduce your financial exposure without parting ways with the property. However, perhaps an opportunity for relief recently arrived in the mail in the form of the TRIM (truth in millage) notice you received in mid-August. Certainly, during the home value escalation the local assessors offices kept pace nicely raising assessed values in unison, but have they been equally efficient during the recent downturn in bringing the values back down?
In our capacity as residential real estate appraisers, we notice that approximately two thirds of residential real estate is over assessed, meaning the assessed value the property taxes are based off of exceeds the current market value. The end result is the property owner paying higher property taxes than the market would dictate.

What can cause a property to be over assessed? For starters, the physical characteristics of the building could be in error, most notably living area square footage. Although each year stands on it's own, an error here could represent a significant amount of excess payment over time. In the current environment, perhaps the distressed sales in a particular neighborhood were not given enough weight.

For a myriad of reasons, it is a prudent measure for all property owners to perform due diligence in investigating the assessed value and how it relates to market value. The appeals process is not overwhelming, but there are deadlines that are strictly adhered to. Please refer to your TRIM notice for details regarding the avenues for appeal and the deadline dates as each county is slightly different.

In this competitive marketplace, opportunity cost is more significant than ever. Certainly, if you require assistance, Accurate Property Values would be happy to assist you. Please feel welcome to visit us at our table at the CFRI General Meeting in September or call us at 407-488-6458.