Appeal MD real property assesment

[Anonymous]

We just received the new assessment for our house in Moco. The new value is 34% higher than three years ago. We want to appeal but need to know where to start.
1. It is oaky we do it ourselves? Are prices from recent closed houses near us good enough for appealing? What kind of additional documents are needed?
2. If we want to hire a lawyer, where to find them and how much it costs on average?

If you have successfully appealed tax assessment on your house previously, any tips for winning strategies.

[Anonymous]

I’ve successfully appealed. First, ask for the assessment details and make sure the info they have is correct.
I also requested info of what they used as sales comps.
What doesn’t work is if you show other properties that have a lower assessed value.

As an aside, I was surprised that the assessed lot value increased so much less than the building- which doesn’t make sense at all.

[Anonymous]

We appealed unsuccessfully last year. We had recent comps (better than the state used) and were still rejected. It’s ok to do this but don’t pour a lot of time and money into this. We are subsidizing the overspending.

[Anonymous]

A 34% increase over the past three years seems to be average for Montgomery county. Ask any of your friends who are house shopping and they’ll tell you that this is the depressing state of affairs for home buyers. Before you decide to appeal, make sure you’re being realistic about how much your house has gone up in value.

[Anonymous]

Your house probably is worth 34% more than it was three years ago. Moco has super low assessments. In Va they redo them every year.

[Anonymous]

Is it actually worth less than the new assessment?

[Anonymous]

I’m only modeling behavior of the elected president.

[Anonymous]

My assessment went up 15%. The assessed value is still about 25% below market value.

[Anonymous]

They think our unrenovated split level is worth $750k….I mean I would gladly take that if someone wants to pay it, but one look at our kitchen and bathroom and people would think we are out of our minds to ask that much!

[Anonymous]

The vast majority of appeals are not successful

[Anonymous]

Do the math on how much you think you'll be able to save in a best case scenario before hiring a lawyer. Let's say you think you'll get $100k knocked off the assessment (which would be pretty extraordinary) -- that's about $1000/year for the next three years, or $3000. Even the cheapest lawyer will cost probably $2500. So maybe you come out ahead $500, and that's in the very best scenario possible. Most likely, you'll just flush $2500 down the drain. If you're going to appeal, just represent yourself -- a reasonably intelligent person can do it.

[Anonymous]

Having litigated this twice before, here are my thoughts:

1) Because MoCo only assesses every 3 years, people get sticker shock. But the assessment is usually still below market value.

2) The cost of hiring someone like me is just not worth it unless you are talking about a MASSIVE misfire on the assessment. I did the job mostly pro bono for friends of the firm. If I billed full freight for it, each client would have lost even if he won. It is usually worth hiring an attorney for a commercial property. Not usually worth it for a home. You’re also going to need to hire an expert if you go beyond the initial SDAT level.

3) And you will need to go beyond the initial SDAT level. They RARELY grant appeals unless it is an obvious miscalculation on the assessment (square footage is off). So then you go to the County Appeals Board. Which is a rubber stamp and generally loathes residential owners who appeal. So then you go to Maryland Tax Court. And that’s where both of my cases settled. After many months from start to finish.

Hope this is helpful.

[Anonymous]

Anonymous wrote:Is it actually worth less than the new assessment?

We would be very happy to sell our house at the assessed value if the state wants to buy it. We believe the market price for our house is 15-20% less than the assessed value.

[Anonymous]

Anonymous wrote:I’ve successfully appealed. First, ask for the assessment details and make sure the info they have is correct.
I also requested info of what they used as sales comps.
What doesn’t work is if you show other properties that have a lower assessed value.

As an aside, I was surprised that the assessed lot value increased so much less than the building- which doesn’t make sense at all.

Thank for sharing your story.

[Anonymous]

Anonymous wrote:I’ve successfully appealed. First, ask for the assessment details and make sure the info they have is correct.
I also requested info of what they used as sales comps.
What doesn’t work is if you show other properties that have a lower assessed value.

As an aside, I was surprised that the assessed lot value increased so much less than the building- which doesn’t make sense at all.

Unless it's a new build, the house itself isn't worth as much as the land.