{"id":369440,"date":"2016-04-04T10:47:27","date_gmt":"2016-04-04T15:47:27","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/valuation-of-property-tips-for-challenging-the-valuation.html"},"modified":"2024-02-11T03:04:55","modified_gmt":"2024-02-11T08:04:55","slug":"valuation-of-property-tips-for-challenging-the-valuation","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/valuation-of-property-tips-for-challenging-the-valuation.html","title":{"rendered":"Tips for Challenging Valuation of Property"},"content":{"rendered":"\n
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Tips for Challenging Valuation of Property<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Robert Rafii, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Property taxes are a significant aspect of ownership in the real estate industry. All real estate assets are taxable. That includes commercial properties and residential properties, which are assessed yearly property taxes<\/a>.<\/p>\r\n

From Los Angeles to New York, every government has a regulatory arm for local taxation. It is dedicated to collecting yearly taxes from the real estate market. You might own commercial real estate investments<\/a> like office buildings. Or perhaps you’re just a homeowner. In either case, you may experience property tax headwinds.<\/p>\r\n

The impact of a tax assessment<\/a> can be expensive for property owners. This is especially true during a financial crisis or pandemic. Tax assessors have different methodologies for calculating how much you owe. Amid the volatility of real estate values, they are tasked with using stable valuation methods. This is to ensure fair real estate valuation for tax purposes. Fair market value<\/a> estimations may be based on recent real estate transactions in a neighborhood.<\/p>\r\n

But government assessors aren’t expert valuers because they’re not real estate professionals. As a result, challenges to the valuations of real property can happen. In most cases, owners are free to meet with the government assessor to present their cases. However, any changes must be based on evidence. Complaints that taxes are too high, without any proof, will not lead to a reduction.<\/p>\r\n

Tips for Challenging the Valuation<\/h2>\r\n

Property owners will need all the records pertinent to the valuation of their property. This is to make a successful argument for changing the valuation. It’s important to ensure you’ve reviewed the assessor’s records for mistakes.<\/p>\r\n

Suppose the assessor accidentally added an extra bedroom or bath in their assessment of the property. Or maybe they figured the tax using the wrong taxing authority. These mistakes can make an enormous difference in your property tax. One way to correct errors is to review comparable sales data the assessor used for their valuation process. Examine these documents and compare your property’s assessed value with nearby properties.<\/p>\r\n

A valuation challenge may be successful if the appraisal overlooked hidden conditions such as:<\/p>\r\n