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Several towns throughout the area are currently in the process of re-evaluating their tax rolls or property assessments. If you recently received a notice in the mail don’t panic. Although your assessment (or home value) is going up, in all likelihood the tax rate will probably go down. If you still think the new value (or assessment) is higher than what somebody would be willing pay for your home then it’s time to sharpen your pencils and do a little homework.

The first stop is the assessor’s office; you’ll need to get a copy of your property data sheet. This is the information used to develop your assessment. Before the advent of the computer this information was kept on card stock material and outlined the property’s characteristics, improvements etc. if you’re searching online check the town website first.

 If you stop at the Town Hall this would be a good time to set up an informal meeting with the tax assessor. This usually takes ten or fifteen minutes and most issues can be resolved without the need of a grievance hearing. If you can, get the list of comparable sales used to value your home when the assessment was completed. This could prove to be very helpful later on.

The Property Data Sheet

Now that you have your data sheet in hand review it carefully for errors. Is the square footage correct? This should be within reason, 100 square feet (or 10%) plus or minus. If you find large discrepancies between what you think the square footage is and what is stated on your data sheet. You may want to hire a real estate appraiser, architect or an engineer to provide a second opinion by sketching out your floor plan and submitting it to the assessor.

 A large part of the valuation process is based on the Gross Living Area (or GLA.) It’s critical that this information is accurate. The GLA should not include areas such as unheated porches or basements. Areas that are open to the second floor should also be subtracted from the total square footage. This is common in newer homes where the front foyer or in the living room is open to the second floor.

What Style are You?

The technology used to assign a value to your home is largely based on four to five factors, or similarities. The computer is looking at homes that have recently sold, which are similar in Style, Square Footage, Location and Age. So if your home is unique and listed on your property data card as a “Contemporary” or “Old Style”, the computer may have to search a very large area to find similar properties that have sold in the recent past. The greater the variables the less likely the computer will be able to spit out an accurate number. If you live in a cookie cutter neighborhood with lots of recent similar sales you shouldn’t have any problems.

What’s My Neighbor Paying?

While you’re at the Town Hall pull the records of your neighbor’s homes that are the most similar to yours. Take some time to compare their taxes to yours and identify any dissimilar factors that would cause your house to be worth less than theirs, maybe you’re in a flood zone and they’re not. 

Externalities

Take a look around your house, is there something about the location that you live with all the time but another buyer might think twice about? This could be a highway, a railroad track, a farm or industry. You may be reluctant to bring all these things to the table but remember, for every $4000.00 dollars in value your home is reduced by can be equal to as much as $100 dollars in tax savings per year. This may only mean a 2% reduction in home value.

What to Bring to a Grievance Hearing

A picture is worth a thousand words - bring lots of pictures. If you have “items of differed maintenance” such as a leaky basement or missing shingles, show this. Everybody has a project that they just haven’t gotten to; this is the time to show it.

 It is not recommended that you bring an old mortgage appraisal from your last refinance. That report was not written for this purpose, the sales trends used are typically within the last 6 months whereas the assessor can use 3 years of prior sales to define market value. Chances are you didn’t take a lot of time to show off that leaky water heater, or the foundation crack that was covered by an old dresser at the time of this inspection. 

Hiring a Professional

If you’ve done your homework and you still feel that your home is over valued it’s time to talk to a real estate appraiser.  An appraiser can provide an independent unbiased opinion of value that the assessor will understand and can be used to support your cause.  He (or she) can act as a representative on the behalf of the homeowner before the assessor or the grievance board and or provide an independent appraisal, but he cannot do both.  A typical appraisal costs between $300 to $500 dollars for a single family home and the costs can usually be recovered in tax savings after the first year.