banking service chronicle Start by reviewing the appraisal districts information for your property for accuracy. If the appraisal district overstates either the quality or quantity of improvements, this will justify a deduction. The next step is to review the information on market value and unequal appraisal provided by the appraisal district in the House Bill 201 package. If the subject property is an income property, review the appraisal districts income analysis versus your actual income and expense statements. banking service chronicle monthly magazine Consider the following areas as opportunities to rebut the appraisal districts analysis:· Gross potential income ·Vacancy rate · Total effective gross income, including other income · Operating expenses · Amount of replacement reserves · Net operating income · Capitalization rate · Final market value Many property owners and consultants start with the actual income and expense data, and use one or two of the assumptions provided by the appraisal district. banking service chronicle monthly magazine subscription However, they primarily utilize information from the actual income and expenses in preparing their own income analysis and estimate of market value for the subject property. When comparable sales are the primary issue in determining market value, start by reviewing the comparable sales data provided by the appraisal district versus the assessed value for your property. Convert the sales prices from the appraisal district to either a per square foot or per unit basis. Then compare the sales to the per square foot or per unit assessment for your property. Sales can be helpful during the hearing. banking service chronicle monthly magazine online The cost approach is not typically used in the property tax hearings except for brand new or relatively new properties. If your property is new, the appraisal district will probably want to review the cost information and you probably wont want to show it to them. In many cases, the actual cost of a property is higher than the estimate provided by the appraisal district. If this is the case, you will likely want to appeal on unequal appraisal instead of on market value. No matter how good your argument or how passionately it is expressed, the appraisal district staff and Appraisal Review Board (ARB) members tend to believe that cost equals value for new properties banking service chronicle monthly magazine buy online.
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