Are Your Property Taxes Correct, or is The Tax Assessor Taking You For a Ride?

As odd as this may seem, this time of year often has home owners arguing that their property is in fact worth less than it actually is. If you don’t agree with me, ask any home owner how they feel about their property taxes that come due November 30 every year in Utah.

Recently, I was at the Cache County Assessor’s Office waiting to speak with the County Assessor. While waiting, I witnessed numerous Cache County Residents come in asking the lady at the front desk why their taxes were so high this year. As the lady explained that the taxes are based on property value, each and every one of the people claimed their home was not worth nearly what the Assessor’s office claims it is worth. I sat there quietly thinking how odd that people think their home is worth very little when it comes time to paying taxes, but when I go on a listing presentation homeowners usually argue that their home is worth much more.

What’s Your Home’s Real Value?

The value of homes is determined by the market. Basically this boils down to what a willing buyer and a willing seller are willing to accept in making a deal on the sale of a home. As homeowners are well aware, the real estate market tends to imitate a roller coaster.

In the real estate market banks ask that homes be appraised to determine their market value before they are willing to issue a loan to purchase the home. Appraisers visit the home to determine the size, quality, age, etc of the home. Once they know what they are dealing with they find comparable homes that have sold recently to determine what the subject property is worth. Consumers are usually overjoyed to have an appraiser value their home for more.

The county assessor makes similar determinations when determining the value of the home for tax purposes, only the tax assessor’s appraisal is not as intimate as they do not have access to view the home’s interior. A tax assessor bases their opinion of value off a smaller amount of information. The county goes off of the recorded square footage, age of the home, and location. Generally, the county’s opinion of value is much lower than the home could actually be sold for in the market. This is actually a good thing for you as a tax payer because it means you are being taxed lower.

How Can You Get Your Home’s Value Reassessed?

Some consumers still feel that their property is not worth what the county claims it is worth. I have recently been asked by some homeowners what they can do. As a homeowner you do have the right to have the home reassessed. The process can differ from county to county, so check with your local assessor’s office.

The process is basically for you to get an opinion of value from either a licensed real estate agent or a licensed appraiser. You can then take that report and present it to the county assessor’s office. Sometimes they may require more than one opinion of value.

Is It Worth It?

The real question becomes, is it really worth it? Like I said earlier, generally the county’s value is less than a home will actually sell for. If you do believe that your home really is worth less, it can’t hurt to look into having it reassessed. Most real estate agents will give you an opinion of value as a free service. If the home truly is worth less, then getting the county to lower your taxes will make it worth it. Even if your home is worth what your county says it is at least by talking with a real estate agent you will have a better understanding of your home’s value.

Robert W. Bowen is a professional REALTOR® with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

Disclaimer: Information in the post is deemed reliable, but cannot be guaranteed as many sources may have been used and may or may not have been reliable at the time of sourcing. The information in this post is an opinion of the author, may be time sensitive, and is subject to change without notice.