Many property owners pass up the opportunity to appeal even if they believe their property has been unfairly overvalued based on area appreciation. But there are good reasons to protest your property taxes, even if you’re unsure if the effort will be worth your while.

1) The assessor may have missed a recent negative influence on the value that appeared after the previous assessment. Examples include traffic noise, proximity to a business, and unapparent defects of your property.
2) There’s no penalty for filing a dispute. If you win, you could save big bucks.
3) Chances are relatively good that you’ll get some tax relief if your argument hits the mark.
4) A future increase will be based on the lowered valuation if you get a tax reduction.
5) And, you have the right to an appeal and should avail yourself of it.

The fee you pay for assistance in disputing a property tax assessment may be deductible in some cases but not in others.

Generally speaking, you can deduct expenses to resolve tax issues related to profit or loss from income-producing property (e.g., rentals). The rules are different for property that you don’t use for business. For instance, the fee paid to a property tax dispute company for help with lowering the tax bill for your principal residence is nondeductible.

As tax laws are complex and subject to change, you should consult with a professional real estate tax advisor about the deductibility of fees for your specific circumstances.

Fees will vary depending on the property tax appeal consultant you choose. Some charge a flat fee. Others are contingency-based. It’s to your advantage to look for one in the latter category who only gets a cut of the tax savings. In other words, no reduction — no fee.

The exact percentage you’ll pay for a contingency arrangement is impacted by factors like the type and value of the property. There are fees that range from 20 to 50 percent of the amount saved. Also, some pricing models have an upfront administrative fee, in addition to a contingency rate. In these instances, the lower the administrative fee, the higher the percentage.

Flat fees for help with property taxes on homes are typically based on value and the scope of services the firm provides.

The best way to appeal property taxes for real estate is to have a realistic asserted value and a solid factual case, and follow the appeal procedure to the letter. Your location will determine the specific process you’ll follow. However, there are commonalities in the approach.

Here are some general tips on how to go about this dispute. First, get the facts on how and when to appeal. Read the assessment notice carefully. It tells you the time window for making your challenge and usually details the appeal procedure. Next, organize evidence. For example, doing the following can help you prove your case:

1) Check the property specifications the assessor used for valuation. If any of the facts are wrong, that can prove/strengthen your appeal.
2) Compile detailed data for similar properties in the area that sold recently (comps). Use a real estate listing website yourself, or ask an agent for help. Lower values back you up. If the comps are close to the assessment, you’ll have to show why they are worth more.
3) Document non-obvious property problems. Provide photos or repair estimates for any major issues that may not be apparent and may decrease property value.

Finally, initiate your appeal. You must file the appropriate paperwork in the specified manner (e.g., online, mail, or hand-delivered) and by the deadline, with no exceptions. Make sure to be prepared to present the reasons for your dispute in person if the process includes participating in a hearing.

Word of mouth is one way to find property tax consulting firms in your location. Spread the word among neighbors, family, and friends that you’re looking for recommendations. Reach out to your business network to find commercial tax experts that handle appeals. Don’t forget to ask for feedback on the success rate and the customer experience.

Talking with a CPA or attorney that you’ve worked with can also provide a trustworthy referral. You may even discover that they have a real estate tax advisor at their firm.

You may also consider contacting real estate agents or brokers that you know. They most likely have a business relationship with a local professional who can help with property taxes.

However, the quickest and most productive way to find property tax protest services in your area is to use our directory. RealEstateBees.com features a list of the top-rated local professionals of various real estate-related specialties whose rating is calculated and stays up-to-date based on a proprietary algorithm of our platform.

You can be sure that you’ll get connected to only the best and most reputable property tax protest companies in the business.