Posted: 3/29/2011 6:17:03 AM EDT
|
Anyone done it? Was it successful? My recent mortgage appriasial was significantly lower than the 2008 tax assessment.
What to expect? They gonna run me through the ringer and then tell me to pound sand? Is this appraisal I got worth anything to them? |
|
My first job out of law school was challenging real property tax appraisals.
Want to do it successfully, you'll likely need to hire an independent appraiser. The cost of that plus filing (and/or attorney's fees) versus the tax savings will tell you if it's worth it. In Ohio, real property taxes are reassessed every three years, so our fees were usually one third of the total tax savings. Also since our public schools are primarily funded by real property taxes, we would usually be opposed by the local school boards. |
|
Quoted:
My first job out of law school was challenging real property tax appraisals. Want to do it successfully, you'll likely need to hire an independent appraiser. The cost of that plus filing (and/or attorney's fees) versus the tax savings will tell you if it's worth it. In Ohio, real property taxes are reassessed every three years, so our fees were usually one third of the total tax savings. Also since our public schools are primarily funded by real property taxes, we would usually be opposed by the local school boards. We just closed last week so I have a 3 week old appraisal in my hand. Are we gonna have to go to court or is this appraisal sufficient to them to reevaluate my taxes? |
|
Quoted:
Quoted:
My first job out of law school was challenging real property tax appraisals. Want to do it successfully, you'll likely need to hire an independent appraiser. The cost of that plus filing (and/or attorney's fees) versus the tax savings will tell you if it's worth it. In Ohio, real property taxes are reassessed every three years, so our fees were usually one third of the total tax savings. Also since our public schools are primarily funded by real property taxes, we would usually be opposed by the local school boards. We just closed last week so I have a 3 week old appraisal in my hand. Are we gonna have to go to court or is this appraisal sufficient to them to reevaluate my taxes? I had to go before a hearing board. 5 people I think . |
|
Quoted:
Quoted:
My first job out of law school was challenging real property tax appraisals. Want to do it successfully, you'll likely need to hire an independent appraiser. The cost of that plus filing (and/or attorney's fees) versus the tax savings will tell you if it's worth it. In Ohio, real property taxes are reassessed every three years, so our fees were usually one third of the total tax savings. Also since our public schools are primarily funded by real property taxes, we would usually be opposed by the local school boards. We just closed last week so I have a 3 week old appraisal in my hand. Are we gonna have to go to court or is this appraisal sufficient to them to reevaluate my taxes? I don't know about the procedures in Kansas, but here you would file an appeal with the local Board of Revision which is basically an administrative body made up of a few county officials. If you don't like their answer, then you move into the court system. The fact that the appraisal is only three weeks old is good, but the argument from the other side will be that it is not a reliable indicator of fair market value for your home only what you paid for it or the what the bank was willing to loan you to buy it. I'm not in that line of work anymore so, I'm not a 100 percent, but since the housing market imploded, I'm sure the folks that depend on real estate taxes for their little fiefdoms will be fighting tooth and nail to keep that money rolling in. Therefore, I'd say the more information you have on your side the better. A real estate appraiser will look at the sales of similar properties in your area (comparables), adjust them up or down for differences and arrive at a FMV for your property that may be more or less than what you paid. It's been a few years, but residential property appraisals usually cost a few hundred dollars. ETA: KSA 79-503a
Fair market value defined; allowable variance; factors to be considered in determining fair market value; generally accepted appraisal procedures to be utilized. "Fair market value" means the amount in terms of money that a well informed buyer is justified in paying and a well informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. In the determination of fair market value of any real property which is subject to any special assessment, such value shall not be determined by adding the present value of the special assessment to the sales price. For the purposes of this definition it will be assumed that consummation of a sale occurs as of January 1. Sales in and of themselves shall not be the sole criteria of fair market value but shall be used in connection with cost, income and other factors including but not by way of exclusion: (a) The proper classification of lands and improvements; (b) the size thereof; (c) the effect of location on value; (d) depreciation, including physical deterioration or functional, economic or social obsolescence; (e) cost of reproduction of improvements; (f) productivity taking into account all restrictions imposed by the state or federal government and local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families as authorized by section 42 of the federal internal revenue code of 1986, as amended; (g) earning capacity as indicated by lease price, by capitalization of net income or by absorption or sell-out period; (h) rental or reasonable rental values or rental values restricted by the state or federal government or local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; (i) sale value on open market with due allowance to abnormal inflationary factors influencing such values; (j) restrictions or requirements imposed upon the use of real estate by the state or federal government or local governing bodies, including zoning and planning boards or commissions, and including, but not limited to, restrictions or requirements imposed upon the use of real estate rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; and (k) comparison with values of other property of known or recognized value. The assessment-sales ratio study shall not be used as an appraisal for appraisal purposes. The appraisal process utilized in the valuation of all real and tangible personal property for ad valorem tax purposes shall conform to generally accepted appraisal procedures which are adaptable to mass appraisal and consistent with the definition of fair market value unless otherwise specified by law. ETA2: Check out link for statutes dealing with how to appeal property valuation. Looks similar to Ohio, file with county then move to the court system if you don't like it. Disclaimer: I am not licensed to practice law in Kansas, you and I don't have a lawyer client relationship, don't rely on anything I say, and please hire a competent attorney if you require legal advise. |
|
Quoted:
Quoted:
Quoted:
My first job out of law school was challenging real property tax appraisals. Want to do it successfully, you'll likely need to hire an independent appraiser. The cost of that plus filing (and/or attorney's fees) versus the tax savings will tell you if it's worth it. In Ohio, real property taxes are reassessed every three years, so our fees were usually one third of the total tax savings. Also since our public schools are primarily funded by real property taxes, we would usually be opposed by the local school boards. We just closed last week so I have a 3 week old appraisal in my hand. Are we gonna have to go to court or is this appraisal sufficient to them to reevaluate my taxes? I don't know about the procedures in Kansas, but here you would file an appeal with the local Board of Revision which is basically an administrative body made up of a few county officials. If you don't like their answer, then you move into the court system. The fact that the appraisal is only three weeks old is good, but the argument from the other side will be that it is not a reliable indicator of fair market value for your home only what you paid for it or the what the bank was willing to loan you to buy it. I'm not in that line of work anymore so, I'm not a 100 percent, but since the housing market imploded, I'm sure the folks that depend on real estate taxes for their little fiefdoms will be fighting tooth and nail to keep that money rolling in. Therefore, I'd say the more information you have on your side the better. A real estate appraiser will look at the sales of similar properties in your area (comparables), adjust them up or down for differences and arrive at a FMV for your property that may be more or less than what you paid. It's been a few years, but residential property appraisals usually cost a few hundred dollars. ETA: KSA 79-503a
Fair market value defined; allowable variance; factors to be considered in determining fair market value; generally accepted appraisal procedures to be utilized. "Fair market value" means the amount in terms of money that a well informed buyer is justified in paying and a well informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. In the determination of fair market value of any real property which is subject to any special assessment, such value shall not be determined by adding the present value of the special assessment to the sales price. For the purposes of this definition it will be assumed that consummation of a sale occurs as of January 1. Sales in and of themselves shall not be the sole criteria of fair market value but shall be used in connection with cost, income and other factors including but not by way of exclusion: (a) The proper classification of lands and improvements; (b) the size thereof; (c) the effect of location on value; (d) depreciation, including physical deterioration or functional, economic or social obsolescence; (e) cost of reproduction of improvements; (f) productivity taking into account all restrictions imposed by the state or federal government and local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families as authorized by section 42 of the federal internal revenue code of 1986, as amended; (g) earning capacity as indicated by lease price, by capitalization of net income or by absorption or sell-out period; (h) rental or reasonable rental values or rental values restricted by the state or federal government or local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; (i) sale value on open market with due allowance to abnormal inflationary factors influencing such values; (j) restrictions or requirements imposed upon the use of real estate by the state or federal government or local governing bodies, including zoning and planning boards or commissions, and including, but not limited to, restrictions or requirements imposed upon the use of real estate rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; and (k) comparison with values of other property of known or recognized value. The assessment-sales ratio study shall not be used as an appraisal for appraisal purposes. The appraisal process utilized in the valuation of all real and tangible personal property for ad valorem tax purposes shall conform to generally accepted appraisal procedures which are adaptable to mass appraisal and consistent with the definition of fair market value unless otherwise specified by law. ETA2: Check out link for statutes dealing with how to appeal property valuation. Looks similar to Ohio, file with county then move to the court system if you don't like it. Disclaimer: I am not licensed to practice law in Kansas, you and I don't have a lawyer client relationship, don't rely on anything I say, and please hire a competent attorney if you require legal advise. I paid even less than appraisal so maybe I should take both? I see it says "solely" but doesn't say they completely ignore it either. The appraisal I have was done by an independent appraiser not someone solicited by the bank also. I paid for it out of my own pocket. Thanks! |
|
Quoted:
Quoted:
KSA 79-503a
Fair market value defined; allowable variance; factors to be considered in determining fair market value; generally accepted appraisal procedures to be utilized. "Fair market value" means the amount in terms of money that a well informed buyer is justified in paying and a well informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. In the determination of fair market value of any real property which is subject to any special assessment, such value shall not be determined by adding the present value of the special assessment to the sales price. For the purposes of this definition it will be assumed that consummation of a sale occurs as of January 1. Sales in and of themselves shall not be the sole criteria of fair market value but shall be used in connection with cost, income and other factors including but not by way of exclusion: (a) The proper classification of lands and improvements; (b) the size thereof; (c) the effect of location on value; (d) depreciation, including physical deterioration or functional, economic or social obsolescence; (e) cost of reproduction of improvements; (f) productivity taking into account all restrictions imposed by the state or federal government and local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families as authorized by section 42 of the federal internal revenue code of 1986, as amended; (g) earning capacity as indicated by lease price, by capitalization of net income or by absorption or sell-out period; (h) rental or reasonable rental values or rental values restricted by the state or federal government or local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; (i) sale value on open market with due allowance to abnormal inflationary factors influencing such values; (j) restrictions or requirements imposed upon the use of real estate by the state or federal government or local governing bodies, including zoning and planning boards or commissions, and including, but not limited to, restrictions or requirements imposed upon the use of real estate rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; and (k) comparison with values of other property of known or recognized value. The assessment-sales ratio study shall not be used as an appraisal for appraisal purposes. The appraisal process utilized in the valuation of all real and tangible personal property for ad valorem tax purposes shall conform to generally accepted appraisal procedures which are adaptable to mass appraisal and consistent with the definition of fair market value unless otherwise specified by law. ETA2: Check out link for statutes dealing with how to appeal property valuation. Looks similar to Ohio, file with county then move to the court system if you don't like it. Also, bear in mind that a lot of what is listed in that statute deals with income generating properties. Go down to your county building get the paperwork, ask the clerk for any helpful information and file it yourself. Worst they could say is no (actually, they could realize the appraisal was too low and raise your taxes  ), and then you have a right to an appeal. If the money involved is significant though, I'd hire an attorney.
Good luck. |
|
Quoted:
Quoted:
Quoted:
KSA 79-503a
Fair market value defined; allowable variance; factors to be considered in determining fair market value; generally accepted appraisal procedures to be utilized. "Fair market value" means the amount in terms of money that a well informed buyer is justified in paying and a well informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. In the determination of fair market value of any real property which is subject to any special assessment, such value shall not be determined by adding the present value of the special assessment to the sales price. For the purposes of this definition it will be assumed that consummation of a sale occurs as of January 1. Sales in and of themselves shall not be the sole criteria of fair market value but shall be used in connection with cost, income and other factors including but not by way of exclusion: (a) The proper classification of lands and improvements; (b) the size thereof; (c) the effect of location on value; (d) depreciation, including physical deterioration or functional, economic or social obsolescence; (e) cost of reproduction of improvements; (f) productivity taking into account all restrictions imposed by the state or federal government and local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families as authorized by section 42 of the federal internal revenue code of 1986, as amended; (g) earning capacity as indicated by lease price, by capitalization of net income or by absorption or sell-out period; (h) rental or reasonable rental values or rental values restricted by the state or federal government or local governing bodies, including, but not limited to, restrictions on property rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; (i) sale value on open market with due allowance to abnormal inflationary factors influencing such values; (j) restrictions or requirements imposed upon the use of real estate by the state or federal government or local governing bodies, including zoning and planning boards or commissions, and including, but not limited to, restrictions or requirements imposed upon the use of real estate rented or leased to low income individuals and families, as authorized by section 42 of the federal internal revenue code of 1986, as amended; and (k) comparison with values of other property of known or recognized value. The assessment-sales ratio study shall not be used as an appraisal for appraisal purposes. The appraisal process utilized in the valuation of all real and tangible personal property for ad valorem tax purposes shall conform to generally accepted appraisal procedures which are adaptable to mass appraisal and consistent with the definition of fair market value unless otherwise specified by law. ETA2: Check out link for statutes dealing with how to appeal property valuation. Looks similar to Ohio, file with county then move to the court system if you don't like it. Also, bear in mind that a lot of what is listed in that statute deals with income generating properties. Go down to your county building get the paperwork, ask the clerk for any helpful information and file it yourself. Worst they could say is no (actually, they could realize the appraisal was too low and raise your taxes ), and then you have a right to an appeal. If the money involved is significant though, I'd hire an attorney.
Good luck. I called and talked to them. She was very nice and I told her I would be by as soon as I got off work with my appraisal in hand. I guess we'll see. ETA: The price I paid the last tax assessment differ almost $40K. |
|
first action is to get real estate comps, homes sold, for your neighborhood.
available on line get listings for houses for sale in your area, compare the two if they are listing and selling for less then your appraised county tax value, send copies and letter stating a protest to the Tax Assessor/Collector in your county with in 90 days you get a decision, IF you don't like it, refile a protest until you get what you want usually with in 1/2 dozen or so protests filed, some clerk will agree with you and change your values.. that is basically what advolarum tax consultants used to do before the birth of the NET put them out of bizz. IF comps are close, with in a few grand of your appraised value, pay your taxes and bitch with your neighbors over cheap beer and ice tea... 
|
|
In Texas you are entitled to see the "evidence" they'll use against you in a hearing. It's a big packet of other properties in the area, improved and unimproved, that they claim justify the number they came up with.
When I looked at the one for my house it was so full of bullshit it was unreal. They had an undeveloped 15 acre commercial property 8 miles away on a freeway frontage road valued at $8,000,000 and claimed it was comparable to the 1/4 acre my house sits on. They had houses in another neighborhood, separated from my neighborhood by a golf course and a 4-lane road that they claimed were comparable. They ignored all the houses in my neighborhood with the same floor plan as mine. Be ready to go in and show them why their evidence is wrong, then present your evidence of values of properties that are actually comparable. |