Property Tax Appeal Questions and Answers 3

My house seems to suffer the "Best House on the Block Syndrome" because the empty lots where my house is located (New development) were sold by the original builder that was the only builder to build on that place, to another builder that builds houses at least 25% lower in price and sq/ft.

Fill in the market analysis forms with the suggested picture views of your home verses the comparable homes and present your evidence. Much of the process is outlined in the book. Your taxes are based on the market value of your home compared to equally comparable homes as yours. The market value evidence you uncover rules.

Present your evidence using some of the techniques focus on in the book.

Challenge the tax assessors comparables. Make him defend how and why
he arrived at his comparables and figures. Try to put him on the defensive.

Just remember that Consumer Reports says a 40% error rate exists and
The National Tax Payers Union states that 60% of homes are over-assessed.
The odds are on your side if you have a case.

No fluff and filler

Q: I need more information on the comparable "adjustments" that are a critical part of any CMA. Pulling comps off an MLS is easy but only a small part of the process. Making the right adjustments to those comps is critical. Specifically, what does your book do to address this subject? There would normally be some basic adjustment values that should work nationally I would think, such as for garages, carports, bathrooms, etc. But what about the locally market dependent items, such as locality, hot sales areas, proximity to better schools,etc.? I've even attended appraiser hosted seminars on appraisals and CMAs but they always protect this information as if it were gold citing that they have developed these values over many years of practice, bla, bla, bla. So, I don't need to spend any more of my time and money on a fluff piece. Please address these questions fully and honestly so I am then able to make an informed decision. As a real estate professional myself, I know many people who would be interested as well. I look forward to hearing from you soon. Thank you.

A: I wrote the book in 2000 and it contains prices typical for that time period. Prices have escalated since then. Nevertheless, one should use the matched pairs method for accurately determining the most accurate dollar amount for garages, decks, fireplaces ... and various other amenities. Marshall and Swift, R.S. Means Construction Data, 2005 National Building Cost Manuual and othe publications publish accurate up to date dollar cost figures covering each state, city metropolitan areas. It is a free reference in most any public library.

Talking about garages or carports or instance:

GARAGE/CARPORT:

Note if your property and comparable properties have garages or carports. In some areas, carports are the norm and a garage would constitute an over adequacy. Garages in these areas are considered an over-improvement and are valued less than areas where garages are common. This same reasoning applies to an area where one or two-car garages are normal; in such an area a three-car garage would be considered an over-improvement and a carport would be a deficiency. The minimum standard size for a garage is 10 by 20 feet; 18.5 by 20 feet for a two-car garage. Adjustments are made on the basis of size, number and type of construction.

If a garage has been converted into a bedroom, den, family room, etc., and it has not been done in compliance with local building requirements, then a downward adjustment may be made for the cost of converting it back into its legal use as a garage (re-installing garage door and minor carpentry work). If the conversion has been donewith required building permits and if it is consistent with the rest of the house, then the full value as living area may be applied.

Garages that have been converted should be looked at for their functional utility. Was the extension of a heating system completed? Are there adequate electrical outlets? Using the matched pair method, house A is very similar to house B, except that ithas a three-car garage whereas house B does not. House A sold for $175,000 and house B sold for $165,500. Because the only difference between these two houses is that onehas a garage and the other doesn't, the value of the garage is the difference in the salesprice. The value of the garage in this example is $9,500.

Garage space is typically valued at $15 per square foot by appraisers. Valuation for garages or carports is based on the number of cars it will accommodate and if it is an attached (shares one or more common walls with the house), detached (shares no walls or ceilings) or built-in structure (shares one or more common walls with the house and the ceiling of the garage is the floor of the house). A 200 square-foot attached garage foran average quality house could add $3,300-$4,900, a 400 square foot garage could add $5,100-$7,000 depending on the type of construction and finish (see Marshall & Swift). A detached garage generally adds 25% more value and a built-in garage subtracts about 35% from the above attached value range calculations. If you have a four-car garage and the neighborhood you live in has largely 1-2 car garages, themarket value for the additional garage space will be marginal (the market value of the additional garages may only gain $3,000 regardless of the additional building costs). If the garage or portion of the garage is an over-improvement, address only thecontributory value of the over-improvement in your adjustment valuation.

There is no fluff here. I've spent over $12,000 on training courses, working in the field as a certified appraiser for many years engaging in numerous property tax appeals that can get quite expensive. One day I got the inspiration for creating a manual that would be easy to apply for the average homeowner. I aimed to create something with no jargon, easy to apply principles, lots of math examples, solid advice at arriving at a concrete value conclusion for a specific time period. I give standard adjustment percentages and reference the sources used in the appraisal industry for those percentages. Wanting to do a first-class job in this book an wanting you win at your property tax appeal I give you my best advice. It's designed to be the shortest do-it-yourself learning curve you'll find to arrive at accurate market value results.

http://www.propertytaxax.com