Worth Appealing a Tax Assessment when we plan to sell fairly soon?

[Out of Steam]

After receiving this year's tax assessment value on our house, I've come around to my wife's view from last year that it is too high, now by roughly 10%. Our house is probably one of the largest single story houses in the subdivision, limiting direct comparisons nearby. My guess is that the comparables come from a neighborhood on the opposite side of a major road where houses sell for higher prices.

The issue is that we expect to sell within two years. Is it possible that we may not want to appeal because the assessed value provides some sort of anchoring for a future sale price? The money involved is modest, no more than $400 a year.

 

[Koolau]

Something to consider. How certain are you that you will be selling?

Of course, a good buyer's realtor won't neglect running their own comps on the house when you sell it, so likely there will be no advantage not to appeal from the future sales point of view.

Best luck what ever you decide.

 

[sengsational]

True they will run comps, but I'm not so sure that the current assessment won't influence the comps. I'd let it go.

 

[Koolau]

True they will run comps, but I'm not so sure that the current assessment won't influence the comps. I'd let it go.

Especially IF you are certain you will be selling. If you let it go and don't move, I suspect you are more or less "acknowledging" the "correctness" of the assessment. Complicated, isn't it?

 

[pb4uski]

My view is that tax assessed values are flaky and that informed buyers generally ignore them, so I would grieve it. I grieved the last two years and was successful both times. It first year was shortly after we bought and they easily agreed to reduce the assessment to our purchase contract price. Last year I was prepared with an independent appraisal in hand and the guy so quickly agreed to a value that was less than what we paid and was over 6% less that the independent appraisal (that I never needed to show him) that I was momentarily at a loss for words. I mumbled, ok and we were done.

Now OTOH, a higher tax appraisal may influence an ignorant uninformed buyer.

 

[Montecfo]

How assessed value is viewed depends on the jurisdiction. It is often viewed as an accurate if low ball value in my neck of the woods.

 

[Texas Proud]

Around here the tax value is not considered that much in a sale...

They are supposed to be market but listing prices are a lot higher than that..

I would protest... might as well save money the next two years...

 

[Out of Steam]

True they will run comps, but I'm not so sure that the current assessment won't influence the comps. I'd let it go.

The tax assessment appears to anchor the Zillow estimate, as that figure is within a few hundred dollars of the 2025 assessment.

 

[Out of Steam]

It is often viewed as an accurate if low ball value in my neck of the woods.

That is how it was where we lived previously, but tax valuations appear to be relatively aggressive here.

 

[Out of Steam]

Something to consider. How certain are you that you will be selling?

Of course, a good buyer's realtor won't neglect running their own comps on the house when you sell it, so likely there will be no advantage not to appeal from the future sales point of view.

Best luck what ever you decide.

We've known for several years that this won't be a long term house, and are about 70% sure that we'll be moving in 2027. If we don't sell then, it will be only a year or two later.

If the agent does their job, the tax assessment shouldn't anchor the price, but the closeness to the Zillow estimate since we've lived here makes me wonder.

 

[COcheesehead]

Having just sold our house, our tax value was nowhere near the market value.
We appealed our tax bill last year and got a reduction. It had no affect on the sale of the house this year.

 

[Stormy Kromer]

$400 expense to have the tax people tell you that your house is worth a lot when you are trying to sell it?

Sounds like they are on your side.

 

[Montecfo]

We've known for several years that this won't be a long term house, and are about 70% sure that we'll be moving in 2027. If we don't sell then, it will be only a year or two later.

If the agent does their job, the tax assessment shouldn't anchor the price, but the closeness to the Zillow estimate since we've lived here makes me wonder.

Zillow knows about the assessment.

 

[jazz4cash]

As I understand OP, the savings is $400 x 1 or 2 years. It’s probanly a wash but I’d look into it. We only assess every 3 yrs and it was not hard to find good comps on zillow and the state property tax database in the prior cycle. Also there were errors in the home details. The relationship here between market and assessed value is ultra flaky. I am doing it again now and it’s not as easy to find favorable comps.

 

[audreyh1]

I noticed OP said up to $400. Our tax assessment challenge agent charges some % of the difference saved us in property taxes.

 

[JBTX]

We are in TX, I didn’t think the amount i could save was worth the effort. Got an add for “ownwell” that negotiates on your behalf and keeps a share of the savings. Surprisingly they were able get it down farther than I thought. Will definitely use again

Perhaps there are similar services in your state.

 

[COcheesehead]

You can do an audit on your own without paying $400. All the tax bills and sq footage info is publicly available.

 

[Out of Steam]

You can do an audit on your own without paying $400. All the tax bills and sq footage info is publicly available.

While I may ask our real estate agent for her opinion, I plan to do any appeal myself. From what I picked up from an email, the county appraiser will send me their supporting data.

 

[Out of Steam]

$400 expense to have the tax people tell you that your house is worth a lot when you are trying to sell it?

Sounds like they are on your side.

Given that we don't expect to be in the house long-term, it's a legitimate thought. I have found two sales in the neighborhood that suggest that the overvaluation is less than 10%. Though those sales have had recent renovations, whereas our house was last renovated in about 2010.

 

[jazz4cash]

I look through Zillow and the state database for comps. I can order worksheets for our home and comps cost $1 each. The worksheets can be very detailed, or not. My worksheet showed our deck extended ten ft into the neighbors yard. I found other anomolies and many errors in the database and submitted three comps to support a lower assessment. It was easy but a lot of work. I saved $600/yr.
There were agents that claimed they would do it for a fee =1st year tax savings. They never responded to my inquiry.