Appealing your tax assessment can be very appealing! One homeowner that we worked with this past September found this out first hand. He received a 43% reduction in his overall assessment. How does that translate into actual tax savings, you might ask?
Well, in this case the house was located in Landenberg, in southern part of Chester County. This area has seen some pretty steep declines from the highs of 2005-2007, especially in the luxury home market. The house was newer and was assessed at $532,770. The Assessed Market Value (AMV) of the home was $951,375. That means that they were being taxed as if the current value of their home was equal to the AMV amount. Their annual taxes were in the neighborhood of $16,200 (ouch!)
Our appraisal of the house and determined the actual current fair market value to be more like $545,000. At the hearing, we were able to demonstrate that our appraised value was indeed the correct value for the property. The Board of Assessment issued a reduction of assessment based on the appraised value.
In the end, this particular homeowner saved $6,966 off their property taxes. That’s a nice chunk of change! While results like this are not the norm, it is not uncommon for property owners to save 12-25%. Depending on their particular property tax burden the savings can really add up!
The bottom line is…if you don’t ask you don’t receive when it comes to appealing your assessment. It is up to the property owner to initiate the appeal and to demonstrate that the assessment is incorrect. Homeowners: it is in your best interest to figure out if your assessment is incorrect. Real Estate Professionals: it is in your best interest to help your past and present clients do the same.
If you have any questions about property tax appeal or other value related topic, please feel free to call us at 215-836-5500 or email at appraisals@coyleappraisals.com
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