Northern Virginia Real Estate News: Your Tax Assessment

Recently, I was on a listing appointment with a home owner who had been in their home for 20 years. Looking at their public record I noticed that their tax assessment was way over assessed based on the comparable properties in their neighborhood. They were paying about $200 more a month than the comparable neighbors. My client was very upset to hear this because we calculated that this had been going on every since he bought the house. He had overpaid property taxes for 20 years costing him thousands of dollars. He never knew and never thought to check. Unfortunately this was lost money now.

Every home is assessed at a certain value by the county based on the public data that exists on the house. Since the county is doing this for thousands of homes, it is bound to make mistakes and they do. In fact, when I bought my current home I noticed the tax assessment was too high and so I appealed the assessment to the county and they agreed and lowered my tax bill. So what's the process?

By now, you probably have received your 2009 tax assessment. It's important to look at your assessment and compare it to your neighbors. This is public information and is listed on most county websites. I'm more than happy to provide this information for you if you email or call me.

If you'd like to research it yourself, I'm providing you the with this information below. It will help you analyze your assessment and if need be how to appeal your assessment.

Below is information about real estate assessments and how a homeowner can appeal your locality’s assessment of your home or property. It should be noted that each locality follows slightly different procedures for determining real estate assessments, reviewing appeals, and determining eligibility for tax relief.

FAQ's about assessments:

1. What is a real estate assessment?

All assessments of real property, including land and permanently affixed structures, are based on fair market value and are equitable with the assessments of comparable properties. Title 58.1-3201 of the Code of Virginia provides for the assessment of real property at 100% of fair market value. Fair market value is the probable amount a property would sell for today if exposed to the market for a reasonable period of time.

2. Who assesses the property and how is property value determined?

Each locality has an assessor who estimates the value of the property. The assessed value of property is part of the equation that determines how much a homeowner pays in real estate taxes. The assessor does not determine the local tax rate. The assessor determines the value of a homeowner’s property by looking at the physical characteristics like square footage of land and improvements made to the structure like adding a garage. Another factor the assessor uses to determine value is location of the property. It is important to remember that the assessment is an estimation of value that is determined through sales, income, or cost data. Sometimes an individual appraisal is necessary if properties cannot be analyzed through mass appraisal.

3. What causes real estate assessments to increase or decrease?

There are a variety of reasons that can result in an increase or decrease. Some include: changes in economic conditions; changes in the property such as structural damage or additions like a new bedroom or garage; land divisions; and re-zonings.

4. How does the assessment affect what I pay in property taxes?

Real estate taxes are calculated by multiplying the property’s assessed value by the real estate tax rate. The real estate tax rate is determined locally.

5. What is the difference between sales price, appraisals, and assessments?

Sale price is the price a buyer pays for a particular property. An appraisal is a detailed single property valuation and a private appraisal may be obtained any time throughout the year. Appraisals have a variety of purposes, for example, mortgage loan, sale, home equity loan, and estate valuations. An assessment is a mass appraisal of property for tax purposes. Assessments are based on large numbers of sales that are analyzed to determine values for large groups of similar properties.

The Appeals Process

There are three main reasons that you may want to appeal your assessment:

1. Your locality has the wrong information about items that affect property value, such as number of bathrooms or square footage or a new structure like a garage.
2. Your assessment is too high based on evidence you have that similar properties in the area have sold for less than the estimated market value of your property.
3. Your assessment is fair and accurate, but higher than similar properties in the area therefore making your assessment unbalanced.

How to Appeal

Gather information

*Be sure you understand the deadlines and procedures for making an appeal; instructions should be on your assessment notice.
*Research what your local real estate assessment office has on record about your property. I'm happy to help you get this information if you'd like.
*Compare your assessment to the price that similar size homes in your area have sold for to see if they are comparable.

Evaluate

*Review and evaluate the data you have collected; you may find that your assessment is on target.

Review and Appeals

*If you wish to proceed with the review and appeals process, follow the instructions given by your locality. The first step may include a review by your local real estate assessment office. If a dispute still exists after the review, you may appeal to the Board of Equalization and Assessment Review. The Board is appointed locally and it has the power to increase your assessment as well as decrease it.

Your Local Assessment Information

* Fairfax County Assessment Website