Should I contest my real estate assessment?

[Anonymous]

It's about $35K less than last year and puts me about $15K below what we paid a couple of years ago (and is less than last year's assessment). We've done a lot of improvements to the house (it was a dump) since we moved in, when the assessment was higher.

I know people look at the bright side of a lower assessment in that they have to pay less in taxes, but I do really believe my home is worth more than the assessment--at least $50K more. Should I contest it? We're not looking to sell in the next couple of years, but I'm wondering--if I don't contest it right away do I miss the boat on contesting it if it goes down again next year? TIA.

[Anonymous]

Why? The real estate assessment does not equal the market value of the home. When you go to sell your home the price you get will be determined by what other similar homes in your area have gone for, it will not have anything to do with your assessment. If anything, having a low assessment will help you sell the house because the real estate taxes will be lower and that will appeal to a new buyer.

If you contest in the way you want to, all you're doing is paying extra taxes.

[Anonymous]

Anonymous wrote:Why? The real estate assessment does not equal the market value of the home. When you go to sell your home the price you get will be determined by what other similar homes in your area have gone for, it will not have anything to do with your assessment. If anything, having a low assessment will help you sell the house because the real estate taxes will be lower and that will appeal to a new buyer.

If you contest in the way you want to, all you're doing is paying extra taxes.

OP here. Hadn't considered that. Excellent point. Definitely something that I looked at when I was a buyer. Thanks for reminding me!

You're right--I think I was just spooked by the lowered number (like everybody else) and have been stewing and wondering.

[Anonymous]

real estate agent here - 17:44 is totally correct. Plus, good for you to pay less! I don't know where you're living, but in pretty much all jurisdictions, assessments have gone d own across the board - they do it pretty much equally for all properties. And assessments are NEVER a reflection of market value. Sometimes, they can demonstrate proportional value (neighbor's house is assessed at 700k and sells for 850k, yours is assessed at 650k and sells for 800k), but even that is not really true. The interior of the houses and the upgrades that have been made play the biggest factor, and unless you've done a renovation where you had to get a permit, the government never knows about it and can't adjust. Anyone buying a house with half a brain knows this (and agents definitely do). Don't stress.