One form of supporting documentation when you want to appeal property taxes is an independent appraiser’s report. You should ask a property tax consultant in this matter because of its importance in your appeal. But here’s a few FAQs you should know, as the owner.
The more you know about the independent appraisal process, the more likely you can make an informed decision on whether to pay for one. It doesn’t always pay to get an appraisal.
What’s An Appraisal?
This is an estimate of the property’s fair market value based on the data gathered by the independent appraiser. The process involves several steps including but not limited to:
- Inspection of the subject property, usually its interior and exterior, while taking note of the approximate value in its entirety
- Collection of data regarding comparable property, data of which can include recent sales prices and assessed values per the local assessor’s office
- Evaluation of the data gathered to provide an objective estimation of the subject property’s fair market value
Emphasis must be made that there are several types of appraisers in the United States.
- A licensed appraiser handles the appraisal of single family homes and multi-family buildings with up to four units with estimated values of up to a million dollars.
- A certified residential appraiser can appraise residential properties with estimated values of over $1 million.
- A certified general appraiser handles both residential and commercial property including apartments, office buildings, warehouses, etc. without regard to value.
Be smart in choosing the type of appraiser that will handle your property’s independent appraisal.
Why Get An Independent Appraisal?
The service is highly specialized since these are only a few reasons that you will likely need it. These situations usually include:
- Buying or selling your property. You can have a reliable price range in which you can negotiate with the other party.
- Estate and divorce planning. You have a general idea about the settlement agreement regarding the subject property based on the independent appraiser’s report.
- Refinancing a home. Your lender will likely require an impartial and professional opinion on the property’s value to determine its suitability.
You may want an independent appraisal when you want to appeal property taxes – or more appropriately, the subject property’s assessed value. Be aware that the independent appraiser cannot be an advocate for your property tax appeal. An appraisal is an independent opinion of value that is unbiased. The appraiser will use the most comparable sales available to render their opinion of value and that won’t necessarily support a lower tax assessment.
A property tax consultant, whether an appraiser by training or not, can be an advocate for the client. They do not develop an appraisal report per se, because if they did they would be acting as an appraiser. The property tax consultant can use the lowest sales available, whether they are the most comparable or not, in order to support a lower taxable value.
If you ordered an independent appraisal for appeal purposes, you own it. You can choose to share it with other people including the Board of Assessors, Board of Equalization, and Superior Court. The independent appraiser, in contrast, cannot share it with others without your consent.
Conclusion
If you have a recent appraisal from something like a refinancing and it supports a lower tax assessment then use it. It doesn’t always make sense to engage an appraiser for a property tax appeal. What will you do with the independent appraisal report when you want to appeal property taxes? You should use it to state the unique condition of the subject property meriting a reduction in its assessed value.
