Counties and cities run their business based on what they can collect from various sources. One of their sources is your property tax, and that goes to the local government in the form of a county/city tax based on the value of your property. If you are thinking that your home may not be worth as much as it was last year or the year before, you may be right. If you look at your property tax bills and the assessment that the local government says that your home is worth, you may be thinking that your best deal would happen if you could sell your home to the county! Likewise, your property may not be as appealing to potential home buyers because they see the higher taxes as an additional cost in their monthly house payment.
Many, many people are paying property taxes on a higher value than their home is really worth and they may need to appeal. If you are not sure of the amount of your home assessment, then you need to find out from the county. You may be able to find these records online. A call to your county tax assessor’s office will get you started. If need be, go and get a copy of your tax records. Find out where the county got their information for the comparables to justify their value. Recently-sold comparables to the county may be a year or two old. The reality is that good comparables to an appraiser or a Buyer’s lender may only be 3 to 6 months. Then find out from the tax office how the taxes are computed.
Some counties may already be planning on reducing the values for next year because of the decline in home prices. But some counties will probably find a way to equalize their numbers by computing with different factors or maybe even raising the millage rate. True, the local government has to maintain schools, fire and police services, etc. and that is understandable. But, you say, if the formula is changed and the value of your home on the county records stays the same, won’t I come out OK in the end? Not necessarily! You need to have your home’s value at the correct amount so that any newly applied formula will be computed on a correct basis. This means that you may need to file an appeal.
Check with your local property tax department to find out when you can appeal (there is only a certain time period), get the necessary forms, become familiar with the rules of the local assessment board, and be sure to follow each step. You may need to get an appraisal from a licensed appraiser. A formal appraisal may cost between $250.00 and $500.00, give or take. You might be able to get your necessary information from a knowledgeable, experienced Realtor. Find out from the property tax department if they require an appraisal from a licensed appraiser. Be sure that all of the information that you present to the property tax department is documented and that the proper forms are completed and turned in within the appeal time.
Once you have successfully established value, turn in all necessary paperwork within the allowed time before the deadline. Remember, the appeal board hears cases like yours many times and they are prepared. You, most likely, will do this once—be prepared. Know the details and amenities of each comparable property and neighborhood. Know the bad and the good so you don’t get caught off guard with a question that you don’t know how to answer. In good market times, it may not be worthwhile to appeal, but in this market, a review by an experienced Realtor that is familiar with your area is a good idea. The Anderson-Gibson Team is knowledgable in the northeast Atlanta counties of Gwinnett, east DeKalb, Hall, north Fulton, Barrow, Walton and Rockdale.