THE CHALLENGE

A homeowner in DuPage County was frustrated by the Assessor’s $2.7 Million valuation of his home, believing that his home was worth far less. The owner attempted to negotiate a reduction with the Assessor, but the Assessor was adamant the home was fairly valued based on sales of homes the Assessor believed were comparable.  The client firmly believed that the Assessor’s comparable properties were substantially better than his home and overstated his value. He reached out to Elliott & Associates for help.

HIGHLIGHTS

• Property Type: Single Family Home
• Savings: Over $64,000 in tax savings and refunds
• Location:  DuPage County, Illinois
• Description:  7,647 square foot single-family home

KEY RESULTS

• Filed appeals 8 years in a row as Assessor was unwilling to reduce assessment
• Obtained a competent appraisal opining to a substantially lower value
• Tried the case before the Property Tax Appeal Board
• Over $64,000 in tax savings and refunds

STRATEGIC APPROACH

​The Elliott team had the home appraised by a reliable appraiser who had experience in testifying in tax appeal trials. His appraisal valued the home at about 23% less than the Assessor.  Elliott & Associates attempted to negotiate settlements with the Assessor, but the Assessor adamantly refused to settle.   Our firm decided to proceed to trial.

RESULT

Elliott filed appeals eight years in a row to the DuPage County Board of Review.  The Assessor appeared at the hearings and aggressively defended his assessments by providing evidence of sales of allegedly comparable properties.  The Board denied our appeals.  Elliott then appealed to the Property Tax Appeal Board (PTAB).

We submitted our appraisals to the PTAB.  The Assessor submitted his sales comparables, which appeared on the surface to be similar.  We researched the Assessor’s comparables and submitted rebuttal evidence that pointed out the significant differences between the Assessor’s comparables and our client’s home.
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We ultimately prevailed each year we appealed and obtained tax refunds for our client of over $64,000.  These refunds would not have occurred but for our persistent and capable efforts and our client’s patience.  Current year taxes are now consistent with the most recent appraisal.

The Challenge
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A commercial & industrial client was planning on constructing a custom home in Lake county scheduled to cost in excess of $11 Million. The client was concerned his tax bill might be as much as $220,000 based on the rule-of-thumb that taxes are typically 2% of market value.  He asked Elliott & Associates for advice and assistance on his home. 

HIGHLIGHTS

• Property Type: Single Family Home
• Savings: Over $1.6M in cumulative tax savings
• Description: 10,311 square foot single-family home
• Location:  Lake County, Illinois

KEY RESULTS

• Worked proactively with Assessor to control assessment of newly built $11 Million home
• Caused home to be assessed for tax purposes substantially below cost to build new
• Over $1.6 Million in tax savings since the home was built

STRATEGIC APPROACH

​High-priced custom homes are typically undervalued by the Assessing officials.  Based on previous experience, Elliott suspected that surveying comparable homes would confirm that assumption.

But, our team also knows that an appraisal would be invaluable in this situation since our client’s home would be one of the most valuable in the township. We felt that it was important to review the 50 most valuable homes in the township in order to provide reasonable valuation benchmarks.

The analysis presented a range of assessed values on a per square foot basis for comparable homes. Adjustments were made for differences amongst the comparable properties.   Our team felt that we should approach the Assessor before he assessed the subject and negotiate what the home should be assessed at.  The client provided his consent and Elliott pursued negotiations with the Assessor.  Elliott suggested to the Assessor that the client’s new home would cost in the high millions, that the market value of highly priced homes are often less than cost, and that our client’s home should not be assessed based on cost, but on the actual assessments of comparable homes in the Township.

RESULTS

Elliott presented the Assessor with assessments of the 50 most valuable homes in his township and suggested that the client’s home should be assessed at the high end of the range.  The Assessor agreed with the approach.  He valued the client’s home at about $2.2 Million, when it cost over $11 Million to build.   Taxes the first year (2005) were about $40,000.  Had the taxes been based on the cost to build of $11 Million, they could have been as high as $210,000 annually. Indicated annual tax savings were as much as $170,000.   The assessed market value of this home has remained under $2 Million since 2005, indicating a total 10-year tax savings of as much as $1.7 Million.