Property Tax Appeal DIY or Expert needed?

Question

I own 2 multifamily properties in Chicago.  I am looking to file an appeal to reduce my property taxes.  I was wondering if anyone went through this?  Is hiring an appeal expert better?  The paperwork seem straightforward, I just wondering if a private firm would be effective in lower my property taxes due to their relationship with the city's assessors.

James Barnhart · Answer

If you think the assessed value to too high, do your "due diligence" to be sure you are correct.

I filled out an application to appear before the  Value Assessment Board to dispute the assessed value, and was prepared to present my case.  A few days later, I was called by a county appraiser about my appeal.  He offered to lower my assessed value considerably, if I was willing to drop my appeal before the Board.  I agreed and got the lower assessment without actually having to do the appeal.

You might want to do this, too.  I didn't need an attorney.

Andrew Johnson · Answer

@Sami Davis So my non-answer is that it might depend on the area.  I know here in California when the crash happened the appeal process was really easy.  You just basically asked (in writing) for a new assessment.  It came in lower, property taxes went down, life goes on.  But thanks to  Prop 13 it's not like California exactly does a robust job of keeping up with valuations.  Unless there's a sale then there's no point.  @James Galla makes a good point that if you're appeal is more than an easy submission you might want to hire an expert.  Additionally, it wouldn't hurt if you had some kind of supporting documentation: HUD-1, appraisal, etc.  Some way to argue that your assessed value is more accurate than a computer model or an assessor walking by.

James Galla · Answer

Hi!

The first thing I did when I purchased my first home appealed the taxes. I remember right at closing I asked my attorney to go ahead and proceed with the appeal.  It took a couple of months because of the hearing times, but the appeal was a success and the assessment was reduced by the appropriate amount.

Three immediate benefits I think of when hiring an attorney to file the assessment appeal:

- Your time is saved

- Not too expensive

- They have experience

Now, you can do the whole thing yourself, but you ought to look towards the procedure. Also, you should have a recent appraisal on the property to substantiate the lower assessment value you are asking for. It's important to note that the reason you may be having an issue with assessment values is because they are often generated by what is called an AVM, or automated valuation model, which is a computerized valuation method which can sometimes be inaccurate. Another important factor is the frequency of when the AVMs are run. Often times, assessment offices run them periodically, but if you have a new purchase with a substantially lower purchase price than the assessed amount, they will not account for that change in market value until they re-run their AVM per their schedule.

So, ultimately, I'd suggest working with an attorney prior to carrying this out yourself. Although, it is always possible to get your appeal scheduled and just present your case by yourself. If you're interested in doing these yourself, I'd at least have an attorney do one appeal and watch him during the process so you can learn what is going on.