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When is an appraisal a worthwhile investment?

September 9, 2020

 

Question:
Do I need an appraisal?
​
Answer: 
Appraisals can be useful in winning a tax appeal case.  But, they are not always necessary. 
 
Let us explain what we do to avoid incurring unnecessary appraisal costs and when buying an appraisal might be in your best interests.            
 
There are several legal arguments for winning a tax appeal case. These include correcting inaccurate assessment records, proving lack of uniformity of assessment, providing arguments about market value, and requesting equitable relief, such as vacancy.           
 
√ Appeals involving inaccurate assessment records and uniformity of assessment claims do not speak to the market value of your property.  So, appraisals are not necessary in these cases.            
 
√ Appeals that seek relief for vacancy likewise are not concerned with the market value of your property, and, appraisals are not needed in these cases either.             
 
√ But, in situations where the market value of your property is at issue, an appraisal could help prove what the true value of your property is. 
 
In some cases, we are able to prove market value by submitting documents showing what you paid for your property recently, evidence of comparable sales or an analysis of the income your property generates (if applicable).  In these cases, we can often obtain substantial reductions without incurring appraisal costs.      
 
But, if the case is complicated, the tax dollar dispute is large, or there is no good evidence of value we can put our hands-on, it may be advisable – and cost-effective – for you to obtain an appraisal.       
 
We always obtain a preliminary value estimate from a licensed appraiser.  We then prepare a cost-benefit analysis showing what the appraisal will cost and how much we believe you can save net of all costs.               
 
When we present a cost-benefit analysis to you, the answer will be pretty clear.           


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