Marketing for Property tax Over-Assessment

[Terrel L. Shields]

What are the legalities and how do we go about doing an appraisal for these purposes?

I know we need to use a GP form.

I would do a narrative but that's just me. The best appraisal is the one you or another appraiser might have done in the previous year for a bank. That would not be tainted by the claim of bias. Skippy's appraisal likely will be too high however.

the real job is to get a reduction.

Exact and an appraisal is considered a joke by most Bof Equalizations because they considered you a shill paid to provide a low appraisal. I contest them over the assessors own tax card. I will take a friends to the BOE who was reassessed by 30% more on a 2 year old house. The house was a grade 4 minus 10%. Somehow it got better and this year is a quality level "4" (10% higher). The so-called neighborhood factor changed from 1.24 to 1.8. No one can explain the NF except it is a statistical relict of some kind created when they attempt to run regression upon a single section or small subdivision with virtually no sales. Hint. Regression analysis don't work on 3 and 4 widely variable sale samples.

[ag appraisal] has nothing at all to do with market value or any other value.

In Arkansas, ag land is valued based on the rents of each soils type. That number is then multiplied x 10 for a "Value in Use"

Most people think that the assessor determines taxes. They do not,

of course they do. If the value is lower the tax is lower given everything else is equal..and the fact it may not be "equal" doesn't change that.

[Mike]
served as a hearing officer

i thought Colorado BoE was composed of the county commissioners. Different in bigger towns I take it?

This is where appraisers are at a big disadvantage to those less qualified.

thanks to USPAP which won't make an exception on contingency. actually some of the best presentations made before our board when I served was from tax consulting firms where their MAI was NOT licensed in Arkansas thus did perform a service on a contingency. And he was right, too.
some reading material
http://www.ojd.state.or.us/Tax/TaxD...F4E988256E51006B51A2/$File/030774F_Sharps.pdf

www.courts.arkansas.gov/opinions/2000a/20000413/99-089.html

http://www.nwaonline.net/articles/2008/07/19/news/071908bzreappraisalfolo.txt

http://www.nwaonline.net/articles/2008/07/15/news/071508bzassessments.txt

http://www.nwanews.com/bcdr/News/64125/

 

[Jim Mallon]

Jim,
Very intersting article.

In Pima County - your "Full Cash Value" could go down and your taxes will still go up. Most people think that the assessor determines taxes. They do not, they determine property values that your taxes is based on. Taxes are set by legislation and the assessor may apply state statutes to the value that they come up with - but they do not determine the amount you pay or the statutes - that is up to the jurisdiction, fire district, county, city, etc. The way most tax rates are determined is by dividing the total budget of the jurisdiction by the total full cash value of the jurisdiction. Which means if the full cash value goes down and the budget does not also go down your taxes will go up. Truthfully, unless there is a factual error or your value is majorly over appraised by the assessor - it's just a drop in the bucket and all you may be doing is help raise the tax rate or lower the amount of goverment services.

Also, in my experience, if the homeowner has well documented information such as a professional appraisal, well documented obsolence, etc then all that would need to be presented to the assessor is the report and they would have a very good chance of getting their value lowered at the first stage of the process.

In California, we have Proposition 13. Properties are reassessed only at a change of ownership or completion of new construction. Communities are forced to live within their means on a year-to-year basis, as opposed to simply changing the tax rate to generate more income.

 

[Mike Garrett RAA]

Here in Colorado...Tax Payers Bill of Rights (TABOR) limits amount of tax increase but that doesn't stop the assessor's from attempting to raise the assessed value.

 

[ryanmi]

I have marketed assessment appeals for 2 years in my area, I do run 20 sites that consumers use daily to get information about assessment values. Without advertising my site I will explain the process of marketing Assessment Appeal work. This is as compliant as I can get any suggestions appreciated.

For prospect who feel they may be paying too much tax, prepare a 1/4 mile map and give avg property value in 2005 (for example), Also give 2008 avg value for same area. This is MLS opinion not yours.
Confirm property card info and give rates for your appraisal services. Disclaimer that assessment value could be lower than appraised value. No guarantee of lower taxes.

Being a counselor and understanding your areas assessment process can benefit the client and your practice.

 

[Lawrence R.]

I have marketed assessment appeals for 2 years in my area, I do run 20 sites that consumers use daily to get information about assessment values. Without advertising my site I will explain the process of marketing Assessment Appeal work. This is as compliant as I can get any suggestions appreciated.

For prospect who feel they may be paying too much tax, prepare a 1/4 mile map and give avg property value in 2005 (for example), Also give 2008 avg value for same area. This is MLS opinion not yours.
Confirm property card info and give rates for your appraisal services. Disclaimer that assessment value could be lower than appraised value. No guarantee of lower taxes.

Being a counselor and understanding your areas assessment process can benefit the client and your practice.

All good ideas, but not for appraisers...To do that with an appraiser's hat on could lead to you needing to find a new place to put that hat.