Tax Assessements - Why would I want my property value lowered?

By
Real Estate Broker Owner with Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# IR40011786
http://actvra.in/5f2

In the year the property values are assessed, I get phone calls from clients asking  "Why would I want a lower property value?"    I just got off the phone with a current client asking this very question!   

 

The taxes are assessed on the value on your property from 18 months prior to the assessment.   This is not Tax Dollarsa current valuation of the property!   If you were to put your property on the market, this figure will not be used for setting the list price.   When a seller calls and wants to put their home on the market, a CMA (Comparable Market Analysis) is done for the last 4-6 months, to get the current value for listing purposes.

 

If you have pulled a permit with the County, the newly finished basement will be added to your assessment.   If you had an addition added on to your property, or added a covered deck, the County will find this as "added value", and your property value will increase.  There are areas of the metro Denver area requiring you pull permits for basements, etc.

 

On May 1st, the assessor will mail your notice of valuation along with the protest form.  If you receive your County Property Tax Assessment, and feel it is too high, give me a call, and I will let you know if there should be an adjustment.      The real property protest period is from May 2 - June 1.      You can do by email, in person, or on-line.     Using comparable property values will help adjust the value of this assessment.   If the home owner is not satisfied with the results, they may file an appeal by July 15 for real property with the county board of equalization.     There is no guarantee the County will lower the assessment, but may be worth the time and effort to try!  

If your property value is lowered, your taxes should decrease as well!

 

Here is an explanation of this taxation process -

These notices disclose the total ad valorem tax due in 2011 for the tax year 2010, as property taxes in Colorado are collected in arrears.   Ad valorem is defined as "according to the value and is a tax imposed on the basis of the monetary value of the taxed item."   Real property taxes are an example of ad valorem taxes.

The tax statements received by homeowners will list all tax entities that levy a tax on their subject property.     These tax amounts are then multiplied by the number of mills reports by each taxing entity (tax rate) by the total assessed value.     These taxes will include school districts, county government, city government, library districts, recreation districts, fire rescue districts, water and sanitation districts, drainage and flood control districts, conservation districts and storm-water districts just to name a few.

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Metro Brokers - House to Home, Inc.House to Home

GRI, ABR, CRS, CNE, e-Pro  

Broker/Owner

Joan@JoanCox.com

720-231-6373

 

Denver Real Estate

Homes for Sale in Denver

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Topic:
Real Estate General Information
Location:
Colorado Denver County Denver
Groups:
Colorado Real Estate
Colorado Realty Bloggers
REALTOR LIFE
Tags:
tax assessment
tax valuations
denver tax assessments
denver real estate

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Anonymous #19
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Anonymous

I’m curious about why a CMA would be done for the last 4-6 months. What’s wrong with months 1, 2, and 3?

January 12, 2011 11:57 AM
Rainer
22,493
Tom Hoffman
Top Priority Realty, LLC

Hi Joan, Thanks for the tax reminder. There is not too much we can do about the mill levy other than voting for responsible people but to protest the assessment is a good thing. It would help a future buyer with a lower total monthly payment and make qualifying for loans easier.

January 13, 2011 10:07 PM
Rainmaker
1,280,214
Joan Cox
Denver Real Estate - Selling One Home at a Time
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373

Russel - I know appraisers use the last 6 months, but if a seller is just NOW comtemplating putting their home on the market, I use between the solds from the last 4-6 months.

January 13, 2011 10:19 PM
Rainmaker
184,800
Larry Atkins
State Wide Realty Co.

Joan, don't we all wish they were being lowered!!  It's great to prepare your clients in advance if they are going to appeal. So many people come unprepared without any documentation and just want their tax assessment changed....so I commend you for offering assistance. Great Post!

January 14, 2011 11:14 AM
Rainmaker
1,280,214
Joan Cox
Denver Real Estate - Selling One Home at a Time
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373

Thanks Larry, I think this is a valid way we can assist our clients - and even FUTURE clients.    We CAN save them money most of the time!

January 14, 2011 06:26 PM
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Rainmaker
1,280,214

Joan Cox

Denver Real Estate - Selling One Home at a Time
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