Fight property taxes: Should you appeal your property’s assessed value in Drew County, Arkansas?
House owners in Drew County are totally knowledgeable about the burden of real estate tax; those that have spent their lives in areas where these taxes are traditionally high feel the effect more than most. The effect of these taxes can be even worse for those who have lived in their homes for some time, as they have seen firsthand the taxes increase year after year. The bad news is possibly overpaying your residential property taxes and be completely uninformed. Here are some typical reasons individuals are overpaying their residential properties tax.
Is your Drew County home over assessed?
A high home valuation is the main factor that people appeal the dollar amount they are paying on their property taxes. Oftentimes, individuals feel that the assessment put on their home does not reflect the marketplace value should they attempt to sell it today. The simplest method to find this out is to call some regional realtors. They must have the ability to tell you the series of values comparable properties are selling for in your area. Keep in mind, the actual market value of your property will not be known till a sale is finally closed. When you receive your house evaluation, you will be provided a 30-day window in which to appeal any assessment. Otherwise, you will need to wait until next year to appeal.
Can you get the real market value of your house?
It is most likely beneficial to contact a regional property representative or your assessor in Drew County, Arkansas. If you feel your home has been severely miscalculated, a professional assessment could show really cost-effective in the long run
Most do not know you are not entitled to dispute your real estate tax bill in Arkansas, however you can unquestionably file an assessed value appeal, keep in mind that regardless of how you feel about the bill, if you do not pay, it can result in the foreclosure of your home.
To effectively appeal, you will need to show a minimum of three comparable properties that have been evaluated at a lower assessed value. The closer these properties remain in size and area to yours, the higher the opportunity of success you will have on appeal
Particular circumstances that may have decreased the value of your property
If there are extraordinary situations that straight lead to the reduction of your property value and these are not shown in your house assessment, these are clear grounds for appeal. Simply supply proof of these circumstances, and the appeals procedure should be straightforward.
You have actually just recently bought your property in Drew County, Arkansas for much less than the assessment value
If you have proof of the purchase price of your home or you possess a current appraisal that does not show the dollar amount your home has been valued at by the assessor, this is clear grounds for appeal. If an expert evaluates your home much lower than that of the assessed value, this is significant proof to back your petition. You can always request a new appraisal although this will cost a few hundred dollars it could be worth it in the end. The good news is that you do not have to accept a high property assessment; you can always appeal and get them lowered in the process.
How do you contest your house assessed value in Drew County?
Every State has their own criteria for property assessment appeals. One thing they all have in common; the only argument that they will accept is that your property has been assessed higher than itreal market value. As your Drew County house taxes are determined basically by multiplying the evaluated value of your home by its locations set tax rate, you do not have any grounds to appeal the tax rate just the real estate assessment. Your only avenue of approach is to prove your home is less than the value the assessor believes.
On receiving your home assessed value, your county will offer you a predetermined window in which to appeal. These can vary significantly from 30 to 90 days so your county appeal deadline is the first thing you want to determine. However, keep in mind if you miss this deadline there’s absolutely nothing you can do, and you will be forced to wait a further year for an opportunity to appeal your house assessment!
The fastest and most convenient method to submit an appeal in Drew County is to do so on the website of your county, town or city. The fees connected with each request can differ dependent on the initial value of your house assessment. The expense of an appeal varies could be as little as $10 to $100, depending on where you live.
The first step in the procedure is to ensure that your local tax assessor has included the proper property info to start with. In some cases, facts on your home may be in error such as, houses have actually been raised with basements that don’t exist; such examples are wrong and could cause your house value being lowered immediately. The more information that you can gather as to why you feel your house is overvalued, the stronger your case for an appeal.
If there are no recognizable concerns with the information on your property, you will need to discover information of comparable homes in your community that are assessed at a lower value. This will be the easiest method to prove your case. You will want to discover three or four homes that are all the same size as yours, in the same location, whose value is much less lower than your property; this will be your grounds for appeal.
In some locations, you’ll be asked to participate in a property appeal hearing, so if this does happen, do not be intimidated. In general, these hearings are simply called to allow you to provide the information you have actually gathered in support of your claim. You will also be allowed to examine any false details that might be on file about your home. You should be ready for this hearing and have all the information you‘ve collected about comparable homes and sales of similar houses in Drew County.
Be ready for the tax assessor to argue his/her counter-argument. One of the most popular ones here is that your home in question is more contemporary than the ones you’re comparing it to. Be prepared for such an argument because if you get to this point, the Assessor believes you are not deserving of a reduction in value and will want to win his/her case by elaborating on the facts to support their position. It’s is always essential to keep in mind that there are no additional penalties connected to submitting an appeal; the worst result being that your house assessment value is the same.
Is it worth submitting an appeal?
If you truly feel that your home has been miscalculated, an effective appeal of your Drew County home assessed value could result in considerable savings. If there are only a few hundred dollars of possible cost savings, it might not deserve your time. You also need to consider that the hearing could be set up during a workday, which may result in a loss of revenues. Find out as soon as possible when the hearings take place, and will it be a teleconference or in-person hearing. This way you can make the arrangements to minimize wage loss.
Prorations - Real Estate Tax and Property
How exactly does your city come up with your property tax value? Are you concerned that your real estate taxes might be unfairly high and want to see if you are eligible for a reduction? That is what we discuss here.
First of all, no matter how confusing your property tax statement is, with all of the various terms, ratios, millage rates, etc calculating your real estate taxes really boils down to only a few factors: the market value of your property, your cities assessment ratio and the tax rate.
The market value is what your property would sell for on the open market, without any "undue influences," like being in a state of foreclosure, structural issues with the property, short sales time frame, etc. Again it's what your property sells for under a normal sale.
Property Tax Valuation
The assessment ratio is very important to calculating your real estate taxes and is what is sometimes referred to as your "property tax value". What cities do is multiple your market value, by the assessment ratio, the resulting number is the assessed value.
For example if your properties market value is $500,000 and your cities assessment ratio is 80% your property tax value would be: $500,000 x.80= $400,000 assesed value. Assessment ratios vary from state to state and from jurisdictions. Your assessment rate could be totaling different than your neighboring town.
The tax rate is also known as a millage rate and is the actual rate that property owners pay in their given town. Like the assessment ratio the tax rate varies from town to town and also from building types. For example a commercial building will be taxed at a different rate than a single family home.
In addition, a single family home used as a rental property will normally be taxed at a high rate than a single family home that is occupied by the owner.
To figure out your annual taxes you multiple the tax rate by the assessed value. For example take the assessed value of $400,000 x.020 (tax rate/millage rate) = $8,000 in annual property taxes.
Property Tax Valuation
On a real estate tax appeal you can only debate the fair market value of your property. You cannot argue the tax rate or the assessment ratio (unless they made a mistake and recorded your property in the wrong category). But again, you can only argue the assessors opinion of your properties value. Keep in mind that most cities assessors are over worked and or under qualified, so they very often make outright mistakes. If you know of other similar properties in your area that sold for less than what they have recorded your property at, than you most likely have a case and could save a lot of money.
Don't be like the 98% of property owners that don't bother to appeal their real estate taxes. They are leaving thousands of dollars on the table for no reason. The process to appeal is really not complex and won't eat that much of your time.