[1] “Step 1: Know the Rules. Schedules vary, but local governments commonly send
assessment notices to homeowners in the first few months of the year. As soon as you get
yours—or even before—check …”
[2] “Steps in the Appeals Process Step 1: Read Your Assessment Letter Local governments
periodically assess all the real estate they tax. When your new assessment comes in the mail, it’ll list information about your property, such as lot size or a legal description, as well as the
assessed value of your house and land.”
[3] “The cost to appeal a property tax assessment depends on your county’s rules and if you’re
paying a third party. In some areas, such Salt Lake County in Utah, filing the appeal itself is…”
[4] “Your proposed property tax notification will include an appeal deadline, which can be as
little as 30 to 45 days after you receive the notification but may be longer 2. Conduct a Self-
Assessment If your assessing authority has an online property tax assessment tool, complete it
before continuing with your appeal.”
[5] “Thanks to the property tax appeal process, valuation amounts are rarely set in stone — and
you should take full advantage of your right to challenge an unfair assessment. Whether dealing
with personal property or real property, the property tax appeal process kicks off with a simple
property tax assessment appeal letter. In this post we …”
[6] “Attending a property tax hearing. In some areas, you’ll file your property tax appeal online,
in person, or by mail and wait for a response. You’ll only attend an in-person hearing if your
appeal.
[7] “How To Protest Your Property Taxes 1. Assess Comparable Properties Fortunately,
homeowners who believe their assessed value is higher than it should be you do have the option to
appeal the decision but must do so in a timely fashion. Homeowners should start the appeals
process by evaluating the comps of similar homes in their area.”
[8] “File an Appeal Online STEP 1 Check to see if your township is open for appeals An appeal
can only be filed during certain timeframes. Check to see if your township is open for appeals.
Starting a file before your township is open may result in a deleted file. STEP 2 Have an email
address ready An email address is required to create an account.”
[9] “The Massachusetts Appellate Tax Board (ATB) is a quasi-judicial state agency designed to
conduct hearings and render decisions on appeals of all types of state and local taxes, including
property tax (both real estate and personal property), corporate excise, individual income tax,
sales and use tax, and automobile and other excises.”
[10] “A property owner must provide evidence to support his/her assessment appeal. This
evidence should include three (or more) comparable properties. These comparables should be
similar properties to the subject, preferably within the same neighborhood. If the appeal is based
on market value, the comparables must be properties that sold recently.
- Cost approach
This valuation method considers the cost to rebuild the structure from scratch, taking into
account the current value of the associated land as well as construction material and other
costs that would be associated with the replacement of the existing structure.
The cost approach is generally applied when appropriate comparables are difficult to locate,
such as when the property contains relatively unique or specialized improvements, or when
upgraded structures have added substantial value to the underlying land. - Sales comparison approach
Also known as the “market approach,” this method relies heavily upon recent sales data for
comparable properties. By seeking recently sold buildings with similar properties from the
same market area, a buyer hopes to ascertain a fair market value for the property in
question.
For example, a 12-unit apartment building might be compared to another that sold in the
same neighborhood just a few months earlier. While this valuation method is typically used
to value residential real estate, it does have one significant drawback. Depending on
general and localized market conditions, it can be difficult to find recent comparables for
similar properties.
- Income capitalization approach
This valuation method is based primarily on the amount of income an investor can expect to
derive from a particular property. That projected income could be derived in part from a
comparison of other similar local properties, as well as from an expected decrease in
maintenance costs.
Say a building is purchased for $1 million, and the expected yield is 5%, based on local
market research. That $50,000 per year in expected income could be enhanced by
tightening inefficiencies or passing along other associated costs to the tenant, like electric or
water usage. All expected future income is discounted to reflect present value. - Value per Gross Rent Multiplier
The Gross Rent Multiplier (GRM) valuation method measures and compares a property’s
potential valuation by taking the price of the property and dividing it by its gross income. In
other words, if you purchased a commercial property for $500,000 and it generates $70,000
in gross rents each year, your GRM would be about 7.14 or $500,000 / $70,000. This
commercial real estate valuation formula is generally used to identify properties with a low
price relative to their market-based potential income. - Value per door
This commercial real estate valuation method is used primarily for apartment buildings
rather than single-unit structures. This method simply determines the entire building’s worth
based on the number of units. A building with 20 apartments priced at $4 million, for
example, would be valued at $200,000 “per door” irrespective of each unit’s size. - Cost per rentable square foot
Rentable square footage combines the usable square footage (the space tenants can
occupy) with the common areas tenants benefit from, such as stairwells and elevators.
Using this methodology, you can extrapolate the cost per rentable square foot, compare it to
the average lease cost per square foot and make an evaluation of the building’s value.
