Property owners should annually review their property assessment. Depending on how your municipality assesses property, whether at full market value or at a fraction of full market value, property owners should review that number.
First, take a look at current sales in your community. Compare your property with the sales that are similar to yours in size, location, age, condition, similar neighborhood, school district and amenities. Â
If your community assesses full market value, compare the current sales to your current assessment. If similar to the current sales, your assessment is reasonable. If the current sales are less than your current assessment you may seek to challenge that assessment with the assessment office.
If your community assesses at a fractional value of your assessment, first calculate the full market value estimate. For example:
| Current Assessment | $100,000 |
| Fractional Percentage | 50% |
| Full Market Value | $200,000 |
If you believe your property could not sell for $200,000 you may consider filing a challenge. Also, if your property has some significant conditions that would affect the market value, such as structural problems or inferior conditions, you may consider filing a challenge.
The first step is checking with your local assessment office to see what the procedure is to file an informal review challenge or a formal review. Typically, there are required forms and documentation needed and specific deadlines that must be met.
Gather as much evidence as possible. This can include comparable properties that have sold that support a lower value, contractor’s estimates for repairs, and photographs.Â
Remember to be realistic. Compare similar properties – apples to apples, don’t just find the lowest sales in your municipality. This will not work. Â
