How to Get Comps for a Property Tax Appeal

Property tax assessments can sometimes appear higher than a property’s actual market value. A property tax appeal offers a pathway for property owners to challenge their assessment. A successful appeal demonstrates that the assessed value exceeds the market value of similar properties. This process utilizes “comparable properties,” or “comps,” to support a revised valuation.

Understanding Comparable Properties

A comparable property is a recently sold property that shares significant similarities with the property being assessed, known as the subject property. The more a comparable property aligns with the subject property across key characteristics, the more persuasive it becomes in an appeal. These characteristics include physical attributes, location, and the nature of the sale.

Proximity is a primary consideration. Suitable comparable properties are located within the same neighborhood or a very close, similar area. A comparable property should be within a one-mile radius of the subject property, though this distance can extend in rural areas where fewer sales occur. Properties within the same school district or with similar access to amenities often serve as better comparables.

Physical characteristics are important, encompassing factors like square footage, the number of bedrooms and bathrooms, and the overall lot size. The age of construction, architectural style, and the general condition of the property, including any significant renovations, contribute to its comparability. For example, a newly renovated home would not be a strong comparable for an unrenovated one, even if other factors align.

The sales date of a comparable property is important, as market values can fluctuate. Comparable sales should have occurred within 6 to 12 months prior to the assessment date for which the appeal is being filed. Utilizing sales from outside this timeframe might require adjustments for market appreciation or depreciation, which can complicate the analysis.

An “arm’s length transaction” is another criterion. This means the sale must have occurred between a willing buyer and a willing seller, neither under duress nor having an unusual relationship. Sales involving family members, foreclosures, short sales, or distressed properties are not considered arm’s length and should be avoided as comparables. Such transactions may not reflect true market value, as they often involve motivations beyond typical market dynamics.

Sources for Finding Comparable Sales Data

Accessing reliable sales data is an important step in identifying suitable comparable properties for a tax appeal. Multiple sources exist for this information, and property owners can use a combination of these resources.

The local assessor’s office or county records department is the most authoritative source for property sales data. These offices maintain detailed public records of property characteristics, ownership history, and sales transactions. Many jurisdictions provide online portals to search for sales data by address, parcel number, or geographic area. Visiting the office in person can also provide access to records and staff assistance.

Online real estate platforms, such as Zillow, Redfin, or Realtor.com, serve as a convenient starting point for initial searches. These sites compile data on properties, including sales prices, dates, and basic characteristics. While useful for preliminary research, verify the accuracy of information from these platforms against official public records. Data on these sites may not always be current or accurate.

Real estate agents and brokers have access to comprehensive data through the Multiple Listing Service (MLS). The MLS contains detailed information on properties listed and sold by real estate professionals, including interior features, photos, and agent notes not available in public records. While direct public access to the MLS is limited, engaging with a real estate professional might provide valuable insights and data. They can generate a “comparative market analysis” (CMA) report.

Other public records, such as deed records maintained by the county clerk’s office, provide official documentation of property sales. These records confirm the sales price and date of transfer. Some specialized property data websites or subscription services also aggregate public records, offering advanced search capabilities for a fee. When gathering data, focus on collecting the sales price, date of sale, and specific property characteristics like square footage, lot size, and number of rooms for each potential comparable.

Analyzing and Selecting Your Best Comparables

After gathering potential comparable properties, the next step is careful analysis to select the most compelling ones for your property tax appeal. This process involves evaluating each comparable against your subject property and making adjustments for differences. The goal is to identify a small group of sales that accurately reflect your property’s value.

Initial screening narrows the broad list of potential comparables based on criteria like proximity, sales date, and arm’s length transaction status. Eliminate properties that are too far away, sold too long ago, or involved in non-market transactions like foreclosures. This filter helps focus on relevant candidates. Aim to identify at least seven to ten strong potential comparables to ensure enough options after refinement.

Making adjustments is a concept in property valuation where a comparable property’s sales price is modified to account for differences from the subject property. If a comparable property has a feature your property lacks, such as an extra bathroom or a finished basement, its sales price should be adjusted downward. Conversely, if your property has a feature the comparable lacks, or if the comparable is inferior, its sales price would be adjusted upward. For example, a comparable with a two-car garage might see its sales price adjusted down by an estimated value of $20,000 to $40,000 if your property only has a one-car garage or none.

Common adjustments include differences in square footage, lot size, number of bedrooms and bathrooms, age, condition, and the presence of features like garages, finished basements, or swimming pools. While precise adjustment amounts can be complex and are determined by professional appraisers, you can use general market estimates or values provided by your assessor’s office for improvements. The objective is to bring the comparable property’s sales price to an estimated value as if it were identical to your subject property.

Determining the “best” comparables involves selecting a concise group, three to five, that are most similar to your property after considering adjustments. The strongest comparables will have the fewest and smallest adjustments needed to align them with your subject property. Prioritize comparables that are very close in proximity, have highly similar physical characteristics, and sold very recently. Once you have identified your best comparables and made all necessary adjustments, calculate a supported market value for your subject property by averaging their adjusted sales prices. This average provides a defensible estimate of your property’s market value based on recent, similar sales.

Preparing Your Comparable Data for Submission

Once relevant comparable properties have been identified and analyzed, the final step is organizing this information for submission to the tax assessment review board. Clear and concise data presentation is important, as a well-structured submission enhances your appeal’s credibility.

Create a summary sheet or table outlining key details for both your subject property and each selected comparable. This summary should include the address, sales date, original sales price, and adjusted sales price for each comparable. Key physical characteristics such as square footage, lot size, number of bedrooms and bathrooms, and age should also be listed side-by-side for easy comparison. This visual representation helps the review board quickly grasp similarities and differences.

Supporting documentation for each comparable property should be attached to your submission. This includes the property record card from the assessor’s office, which provides official details about the property’s characteristics. Copies of sales deeds or public record printouts confirming the sales price and date are also important. If you obtained information from an MLS listing, a printout of that listing, along with any relevant photos, can further support your claims.

Consider writing a brief cover letter or narrative to accompany your submitted documentation. This letter should concisely state your requested assessment value and explain how the comparable sales data supports this revised valuation. Briefly highlight the most compelling aspects of your chosen comparables and explain the rationale behind any significant adjustments. The narrative guides the review board through your analysis.

Finally, understand the specific submission methods and deadlines set by your local assessment authority. Submissions may be accepted online, via mail, or in person. Confirming these details ensures your documentation is received and considered within the required timeframe.