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Learn How Property is Assessed and How Tax Grievance Works

Learn How Property is Assessed and How Tax Grievance Works

How Property is Assessed

The initial step in property assessment is to determine its actual market value. In order to estimate the market value, it is the work of an assessor to learn and get familiar with the real estate market in a given location. In most cases, there are three major ways in which the property assessor can estimate its value. These are:

  1. The market approach

The market approach is where the assessor takes property comparison into account. The assessor compares one property to the similar ones that had previously been sold. This method is applicable to find the value residential, vacant as well as farm assets.

  1. The cost approach

When it comes to the cost approach, an assessor calculates the cost of replacing a structure in relation to another similar structure using the current labor and the value of materials to be used. The appraisal in the cost approach entails the market price of the property, which is normally equal to the cost of the land added to the cost of construction and then subtracted from the depreciation. The results come out to be the accurate market value especially when the property is new.

  1. Income approach

This is where the assessor makes an analysis of the income expected from the property when it is finally rented out. The income approach takes into account the following factors:

  • Operating expenses
  • The insurance
  • Costs of maintaining the property
  • Financing terms and conditions
  • Expected income

Sometimes, the assessor can choose to use the Computer Assisted Mass Appraisal technique to perform an analysis of the sales coming from the property and then estimate the values for various properties at the same time.

From the Market Value to the Assessment

After the estimation of the market value for a certain property, the assessors proceed to calculate the assessment. For instance, in a city where the assessment is 100% of the market value, then the market value, in this case, becomes the assessment. For example:

Take the market value of the property to be $ 100,000 and the level of assessment at 27%, it will yield $ 27, 000 in value.


Property Tax Grievance - How It works


Tax Grievances

Once you get to know how the property value is assessed, the next step should be to understand how filing a tax grievance can help.

Perhaps you are one of the homeowners in Nassau and Suffolk County who feels the pain of the rising property and school taxes, despite filing for the STAR or any other exemptions. Whichever the case, one thing you should know is what a Tax Grievance is and how it can help you get out of your current situation.

To begin with, Tax Grievance is the formal complaint filed to contest the town’s assessed value of a particular property. In as much as we cannot change the calculations and rates used to determine the property taxes in your town, we can only challenge and have your taxable value for your current property reduced considerably. That is why you need a tax grievance consultant to help you in lowering your property taxes so you may pay less due to lower assessment.

Are there any risks involved?

There are no risks involved when filing a tax grievance because your assessment cannot be increased only decreased, plus no one visits your home. In fact, a reduction does not have any effect on your other exemptions namely, the STAR.

Additionally, there is no cost incurred to you if no Property Tax reduction is obtained for your property. Once you complete and submit your Tax Grievance Authorization, we handle the entire process for you. In the end if we succeed in obtaining a Property Tax Reduction, your fee is half of your first years’ savings.