How to Appeal an Appraisal or Property Tax Assessment

An appraisal represents a professional opinion of a property’s value, often a key component in real estate transactions and mortgage lending. While appraisals aim for accurate, unbiased assessments, their findings can sometimes be challenged. This article explains the process of appealing an appraisal or property tax assessment.

Common Reasons for an Appraisal Appeal

Appealing an appraisal or property tax assessment generally stems from a belief that the determined value is inaccurate. For appraisals, common reasons include factual errors in the report, such as incorrect square footage, room count, or missing amenities.

An appraiser might also overlook significant property features, such as recent renovations or unique characteristics, or fail to account for property defects like structural damage or deferred maintenance. The use of inappropriate or outdated comparable sales, often referred to as “comps,” can also lead to a disputed valuation.

For property tax assessments, an appeal might be initiated if the assessed value appears significantly higher than the property’s fair market value. This overvaluation can occur due to mass appraisal models, outdated records, or failure to recognize market shifts or property depreciation. Property owners may also appeal if they believe their assessment is unequal compared to similar properties in the same jurisdiction.

Preparing Your Appeal Submission

A successful appeal hinges on thorough preparation and strong evidence. Begin by obtaining a copy of the original appraisal report or your property tax assessment notice, which outlines the determined value and relevant property details. Review this document to identify factual errors, such as incorrect square footage, bedroom count, or property features. Document these discrepancies.

Gathering robust supporting documentation is essential for both types of appeals. For real estate transaction appraisals, research recent comparable sales that were not included or adequately considered in the original report. Seek properties with similar characteristics, including size, age, condition, and location, that sold within the last six months to a year. This data can be found through real estate websites, local real estate agents, or appraisal professionals. Ensure these comparables reflect your property’s market segment and provide a more accurate representation of value.

Compile visual evidence, such as recent photographs highlighting improvements or illustrating physical defects or deferred maintenance that negatively impact value. For property tax appeals, evidence of property condition issues, such as structural problems or significant damage, is particularly relevant. Collect documentation of any repairs or maintenance costs to support a lower valuation.

If specific forms are required for the appeal process, obtain these from the relevant authority, such as the lender or the local tax assessor’s office. These forms often have sections for providing your proposed value and outlining the reasons for your appeal. Accurately complete the informational fields using the detailed evidence and data you have gathered, ensuring consistency between your documentation and the appeal form.

Appealing a Real Estate Transaction Appraisal

Once preparatory materials are gathered, formally initiate the appeal for a real estate transaction appraisal. This process, often termed a “Reconsideration of Value” (ROV), typically begins by contacting the lender who ordered the appraisal or the appraisal management company (AMC) they utilized. The lender serves as the primary point of contact.

You or your real estate agent will submit a written request for an ROV to the lender. This request should clearly state your concerns and refer to the specific evidence prepared, such as more suitable comparable sales or identified factual errors. Lenders may have a specific form or online portal for submitting ROV requests, while others might accept an email or mail submission. It is important to adhere to their preferred method and any specific instructions they provide.

Upon submission, the lender or AMC will review your provided information and typically forward it to the original appraiser for reconsideration. The appraiser re-evaluates their analysis based on the new data. Responses are often provided within a few business days to a week or two. The appraiser might issue an updated report, provide additional commentary to support their initial valuation, or acknowledge and correct identified errors.

An ROV is not guaranteed to change the appraisal value simply because you are dissatisfied with the outcome. Its purpose is to address legitimate concerns regarding factual inaccuracies, overlooked features, or the use of inappropriate comparables. If the appraiser provides a revised valuation, the lender will communicate this new figure, which could impact loan terms or the transaction itself. If the ROV is denied, you may have limited further recourse through the lender, although some consumers consider ordering a new appraisal at their own expense, though the lender is not obligated to accept it.

Appealing a Property Tax Assessment

The process for appealing a property tax assessment differs significantly from a real estate appraisal appeal, as it involves engaging with local government authorities. Your first step involves identifying the correct local tax assessor’s office or the specific assessment review board responsible for your property. These bodies are typically county or municipal level entities.

Be aware of strict filing deadlines, which can vary widely by jurisdiction but are often in the spring or early summer, sometimes as short as 30 to 45 days from the date of the assessment notice. Missing this deadline can prevent you from appealing for the current tax year. Obtain the specific appeal forms from your local assessor’s office, either in person, via their website, or by mail. These forms will require your property’s identification number, your contact information, and detailed reasons for your protest, along with your proposed value.

Submission methods typically include online filing, mailing the completed form and supporting documents, or in-person delivery. Some jurisdictions may suggest an initial informal review with the assessor’s office, which can sometimes resolve the issue without a formal hearing. If an informal resolution is not reached, your appeal will proceed to a formal review or hearing.

During a formal hearing, you will present your prepared evidence to an assessment review board or hearing officer. This evidence should support your claim that the assessed value is higher than the fair market value or is unequal compared to similar properties. The board or officer will consider all presented facts and may ask questions. They will then render a decision based on the evidence, which you will typically receive in writing.

Understanding the Appeal Decision

After you have submitted your appeal and the review process concludes, you will receive formal notification of the decision. This notification typically arrives via mail within several weeks to a few months, depending on the complexity of the case and the backlog of the reviewing body. The outcome of your appeal can vary, with several possible results.

The appraisal value or property tax assessment might be adjusted downward, reflecting a more favorable valuation for you. In some instances, the value could remain unchanged, or it might even be increased if the review uncovers additional factors. If your appeal is successful, a revised loan amount might be processed for a real estate transaction, or an updated property tax bill will be issued with the reduced assessment. If the appeal is denied, some jurisdictions offer further avenues for appeal, such as a higher-level review board or judicial review, though these typically involve additional procedural steps and deadlines.