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Some Property Tax Consulting Home Business Questions and Answers

1. Question:

How long does it normally take to complete the documentation for one client?

Answer:

Meeting the client, explaining the service, getting some facts, filling out the forms, driving to and from should take less than 1 hour. Digging up initial information to put it together can be as fast as downloading comparables from

    online real estate values 
Enter the property address and receive SOLD PRICE DATA in a home valuation report. For residences, condominiums, town homes, etc.

  • COMPLETE PROPERTY VALUATION (Up to 15 Recent Comparable Sales+)                    [Option A] Price: $29.95
  • SUBJECT PROPERTY WITH RECENT SALES  (Detailed Property Information +)            [Option B] Price: $9.90

    Up to 15 Comparable Sales, Detailed Maps with Comps, Tax Assessor Data · Detailed Data · Automated · Accurate Market Value · Real-Time Property Information · Tax Assessor Data · Lot Size, Square Footage · Legal Description · Sales & Transaction History · Charted Valuation - Trend Graphs

    Comparable Home Values and Property Comparable Real Estate Sales Data Online   (free sample reports show you exactly what you get.)

However, preparing the actual appeal for The Municipal Board Of Appeals in exacting detail can take a few additional hours of investigation for a residential property property appeal. It is best to get data from the Sold Listings off the real estate salesmens Multiple Listing Service which they will be happy to share with you and your client since your client might be a source of future business when they decide to sell their home. These sold listings provide much more information and evidence that stands up well under scrutiny.

 

2. Question:

  I want to check into the time window for appeals before committing further. If appeals must be submitted within 25 days from the trim notice, I'm not sure how much money can be made in that narrow 25 day window.
 
Your thoughts would be appreciated.

Answer

Tax assessors have the legal authority to reduce your property taxes. The property tax appeal season can range from 1 to 2 months for most areas and at that time the tax assessor is inundated with requests, meetings with irate taxpayers, paperwork to present a counter-claim to the appeals and generally will not be very cooperative. Imagine yourself under that type of pressure, and since the tax assessor is usually only one person, he/she will often give you the bum’s rush.

However, property tax appeals done AFTER the season ends is another matter. Their phone doesn’t ring very much, there is little work to do and they are more inclined to listen. As long as you have a friendly tone, you can visit the assessor multiple times with your comparative evidence, and new comparative evidence if need be, and chances are good that he/she will grant the appeal on the spot if you produce reasonable figures and evidence to work with.

Note that even though the appeal is granted, the reduction for the property owner will not go into effect until the next tax year. Even so, you’ve avoided the time sink of a municipal tax appeal and can look forward to capitalizing on your win at a later day. This can be a year-round business.


3. Question:

What's the probability of winning a property tax appeal if I am just starting out in the business?

Answer:

You should be winning 75 - 80% or more of your cases starting right out of the gate. After you have a few cases under your belt you should be in the 90% plus win ratio category for a successful property tax appeal.


4. Question:

What about the research for facts and data, how difficult is it to find these data as not all information are available online. Do I have to charge the client for processing cost for researching?

Answer:

Research facts from real estate MLS "SOLD" listings. It cost nothing and real estate brokers are happy to supply the information. Computerized online services such as http://www.electronicappraiser.com provide excellent results as well. Their fees range from $9.40 to $29.95 (15+ recent comparable sales). Some municipalities have comparative information online as well.

In many areas tax consultants charge a non-refundable up to $95 fee to determine if the prospect has an equalization problem. Make sure you test market your fees before putting them in concrete. The prospect has the peace of mind that their property taxes are correct if they have no case and you are off the hook. And if they have a case, you have a very valuable prospect indeed.


5. Question:

How I can make sure that my client pay me after winning the case? Also if it happens that they bring the case the arbitration I wouldn't be able to follow the case as it may need a lawyer.

Answer:

You'll have a signed contract from the client and the stipulation that they are required to forward any information regarding the matter to you. A signed promissory note for the contingency agreement amount is solid evidence. Public record will show that the assessment was reduced. If you get a layer involved for collection it is a simple matter for them. You'll be likely able to get find an attorney who will take the case on a contingency bases.

 

6. Question:

When I'm making adjustments in the areas of site, view, neighborhood, noise and the things that can't be cost out using Marshall Swift, do I use the matched pair method to value say the neighborhood or view.     Is there a better way to make adjustments in these areas ?

Answer:

To answer your question, the authentic and best method is to do matched pairs. But, because of a lack of exact comparable's or time restraints, that is not always feasible. If you go back further in time looking for matched pair comparable's, you'll get some sort of idea for adjustment values for a view, neighborhood, 3-car garage vs. 4-car garage, etc. Then you can extrapolate that valuation in order to make an educated valuation guesstimate.  

 

7. Question:

I may lose an account because the client's wife feels that lowering their taxes will effect the amount of money that they can get for the house when they sell it. She thinks It will change the value of their home. What presentation would you give to clear up her misunderstanding and get her back in my corner again?

Answer:

When the time comes for client to sell the house, there is no telling what the real estate market will be like. The market could drop like a rock or it inflation sets in the price of homes could skyrocket. No one's going to be looking at property taxes to gauge value, rather what comparable homes are selling for.

When it comes to buying a home, most would relish the thought of have a low tax base. Nevertheless, the main reason someone buys a home is that they like the house and the neighborhood. So why not enjoy property tax savings while you still live in the house?

When the home is sold it will most likely be revalued at the new market value sold price. Whatever property tax that was previously associated with the home will have disappeared. Challenging your assessment does not affect the resale value of your home; it only affects what value your home will be taxed on.

 

8. Question:

In Colorado we get the valuation for the present year in May. You have 30 days to file the property tax appeal for that year. The study period for comparables for 2009 are from 2006-2008. The assessor's office says the new comps for 2007 and 2008 will be listed on their site May 1, 2009. Does that mean that you will just have 30 days to select good comparables, do the adjustments and file for your clients. That seems like a small window to do the work. How many clients is a reasonable number to shoot for if you have to do all the workups in less than 30 days each year? I think I can get more clients than I can work up in 30 days.

Answer:

It depends on ambition. You can line up an unlimited number of clients by doing a preliminary property tax analysis using a resource such as http://www.propertytaxconsult.com/electronicappriaser.htm and charging a small fee. If you advertised for a reasonable you could get a lot of initial customers and not get bogged down with tire kickers. Then cull those who would have the highest estimated reduction numbers (generally the more expensive homes) and negotiate to take them on as appeal clients.

When they say 30 days, they mean thirty days. Postmarks, most likely, don't count; they don't want to make it easy. When close to the deadline, it's best to hand-deliver if they don't count the postmarked dates.

When working up the actual appeal, use real estate broker sold information gleaned from the multiple listing service that the particular real estate agency is a member of for sold data. The information is more complete and oriented toward the buyer. For instance they might say it had an updated kitchen, appliances and bath which would result in a big adjustment. You'll not see that type of info from a assessor's or municipalities supply of in-house comps.

Personally, I'm more laid back and not that ambitious and, starting out, 10 or so good cases might not be an overwhelming work load.

 

9. Question:

Date Of Sale for subject property

5-1-09 Date Of Sale for Comp 1.) 5-28-05 = 49 months difference      .049X $365,700 = $17,919 as the adjustment.
Date Of Sale for Comp 2.) 8-08 =9 months difference.     .09X $446700 = $40,203 adjustment.

How many "0"s do I add when I am figuring the adjustment? If I added 2 zeros behind the decimal point the adjustments would make more since.  Aren't these figures a bit high for an adjustment $40,203 for sure and $17,919 maybe.

Answer:

First of all, your should be looking for sold comparables that are within a few months from the assessment date for the year you are appealing. The closer the sale and the fewer months between the assessment date you are appealing for, the more acceptable the comparable is.

49 months difference for Comp #1 is too much of a difference! The Comp is not valid.

If you find that the price of housing has declined, let's say by 12% over the last year, a 1% per month adjustment to the comparative sales would be in order.

So for your comp #2 assuming a 12% decline in market price over the year, 1% of $446,700 equals $4,467. Multiplied by 9 months = $40,203 as an adjustment.

Make sure you can back up whatever you say the decline in price has been with accepted public statistical data that you've gleaned that from a news source such as state figures, the Multiple Listing Service or Realtor organization figures.

 

10. Question:

I am very interested in your course. who would pay a property tax consultant? The property owner or would the client get a refund from the tax assessors office?

Answer:

The client would pay after you won the case and the tax credit was recorded and credited to him.  Let's say his property tax bill was $10,000.  You reduced it to $7,000 and charge your client $3,000 spread over 3 years.  The client would get a notice that credits them for the taxes they have already paid as well as an adjustment to their total tax bill.

In other words, the client pays you but it is not costing them anything in the sense that they are paying less property taxes.  Since you've spread payment over 3 years, the client is actually $2,000 dollars a year ahead of the game. The client is much better off since he met you.

 

11. Question:

I am interested in getting the Property Tax Consultant package and have a couple of questions.
1.    How often can the appeals be filed? Are there deadlines for filing?
2.    Do we need to team up with an appraiser for the appraisal report?
3.    Do you have software that comes with your course?

Answer:

Property tax appeals can be filed for the same property every year if necessary but they have to be filed within the filing deadlines ... usually 1 or 2 months after your client receives his/her notice. In the "dead" months I recommend another good business, Judgment Recovery and Small Claims Processing that can be worked from a home office.

You don't have to work with an appraiser. If you teamed up with an appraiser they would expect to see a large chunk of the win and may not want to work on a contingency basis. Nevertheless, you could if you wanted to.

The necessary math and computations can be done on a simple Excel spread sheet. No costly software is necessary. The math is quite simple, basic addition, subtraction, and a little multiplication and division.

 

12. Question:

I live in Michigan and am looking for a home based business venture.  Presently I don't think I would be able to be away from home to represent the client in court--although this situation may change in the next year or so.

Do you have any ideas on how I could make this work by having the client represent himself and just giving him all the necessary information that he would need?

Answer:

You could, as you say, coach your client all the information so that he/she has a complete work up of the important facts to emphasize and what facts to attack that the town assessor might bring up. You could do all the legwork, finding the comparables and doing the work up and they present the case. Since your clients are investing their time and efforts, a lower contingency fee would seem fair.

It can be done.

For another similar business that can be run from home that doesn't require strict imposed appointments or schedules, you might consider http://www.smallclaimsprocessing.com/

 

13. Question:

With the economy being so bad and the unemployment high, will this have a huge effect to get this business going? What is the average % will I hear from the letters that I send out?

Answer:

Opt in rates vary. Depends on your headlines, bullet points, call to action and other factors.  Just finished taking a coarse about direct mail that cost me about $900. Seems one of the most effective ways is to send out postcards that have a  call to action that goes into a voice recording 800 number and at the end of the message a "push 1" feature to leave name and address.

In mail order anything above 2% is considered good.  With an effective postcard expect 10% or greater opt in and a 50% or greater conversion resulting from replying to those leaving their name and telephone number. The call to action in that case is promising something for free such as a call back and discussion of their situation.

 

14. Question:

Doing this for the first time I was a bit unorganized. I was able to file 3 property tax appeals this May. My clients were happy and actually so was I. The meetings with the assessor went well. I asked her if she would tell me where my adjustments were good and where they need work. She balked at that but finally agreed to give me some information in September. I guess that's when I will find out how successful I was with my adjustments.

I was surprised how many people were angry with the assessor, but the evidence they presented was terribly inadequate. I felt good about the facts and adjustments that I brought to the meeting.

I ran an ad on Craig's List just as a test. I have not gotten any interest yet.

What do I do next as far as advertising? Do I wait until when say September to start advertising or can I pick up a few people all year long "which is what I hope to be able to do". Next May the study period is the same as this year so I can still have a good pick of comparables.

Answer: Most people don't put out fires until they perceive that they have a problem. The best time to advertise is just before the assessment notices come out and immediately after they come out to get the most bang for your buck. However, you can present an appeal for lower property taxes with the local assessor at any time of the year.

 

15. Question:

I have a few more questions about the business before I purchase it.
1) Do my clients need an appraiser

2) Do (I) or my clients need an attorney

3) Is there any other court or appeal fees that are existent in the process and if so what is an example of an average fee per deal?

4) How long does the average job take (in hours). 

Ultimately I am looking to quickly service customers and make this process simplified so that they are happy and I am happy also. My goal is to reach a high number in quantity as well as quality service.  In this economy people are tight on cash and I am looking to make money but importantly to get gratification from delivering a service that is not drawn out. Extra fees other that what I would charge are of concern to me (filing, processing, etc) and that is the reason for the above questions.

Answer:

1. No, that is why you enter into a contingency relationship with them. But you or your client can always buy one.  Appraisers are expensive in that the appraiser will charge around $225 - $350 for the appraisal and about $800 to hang out for the municipal hearing with no guarantee they will win. That is a prime reason the common man is not able to justify using them.

2. No. You enter into a power of attorney relationship with your client.  You are not practicing law, you are guiding your client in a valuation procedure in which you are an expert at.  Worse case you can act as an expert witness with the facts you've uncovered.

3. Yes, there is a fee for both the municipal board of equalization and the state appeal board but they are minimal, usually less than $50

4. To meet the client and sign them up takes about an hour. If you decide to go ahead and appeal the property will take about 4 hours. If the tax assessor agrees you'll have invested 1 hour. If you have to go to the municipal appeal board you do not know if your case comes up in the morning or afternoon. Worse case, you could waste a whole day.  State court is quicker, likely 2 hours at most.

 

16. Question:

Interesting to note that a large national firm (with 20 offices) stated in their web site that their success rate was 64% and reduced the client's property tax rate at 15-18%. This could be last year's stats. What do you think the stats of this company? at this current market?

Answer:

It all depends on the  case.  If there are marginal cases a 64% success rate I suppose are OK. If there are flagrant disparities I would expect a 95%+ success rate.

It all depends on the case. A company with 20 offices has a huge number of continuing yearly clients it monitors and acts on behalf of.  Given that huge number of clients, a 64% success says that there is a huge market for property tax abatements. I'm sure they monitor their profit and loss sheets for a healthy retainer as well.

Anyhow, with a little experience and by being selective you can filter for high probability results.

17. Question:

I was looking for up to date adjustment values because the values that my "paid for" professional appraiser used was much different than the county appraiser used for the same item.  For example the pro appraiser used +3K for 3 car garage over a 2 car while the county value was +8K.
 

Answer:

That specific data, to be done accurately, requires a multiple regression analysis. That type of analysis is very lengthy and exacting and is something academic rather than practical.
 
So ... unless you come up with figures on  a cost analysis basis less depreciation basis, your fate will be left to guesswork supplied by both your appraiser and the the tax assessor. Accordingly, if you don't do you homework for this specific item of contention, guess who wins?

 

18 . Question:

How long does it take to complete your course?

Answer:

It probably will take a few days to read through all the material. This is a earn while you learn course. This type of training is best learned by applying it. What I mean is that if you found a prospect who was interested in appealing their property taxes, you'll be applying and reinforcing the principles you studied as well as have a reference for adjustments you'd need to make to solidify their tax appeal case.

Since every home is different, there will be different adjustments you'll be making on a case by case bases, but many of these are typical and the process is the same. After you've put together and followed through on a few cases you'll get up to speed and ready for more.

 

19. Question:

The  methods and criteria for property valuation are the same in the US and Canada.

Answer:

It's a matter of determining the market value and challenging an erroneous assessment. Whenever a mass assessment is contracted for by the taxing authorities errors creep into the database because it is jobbed out to the lowest bidder and adequate time to do a thorough appraisal is never budgeted for.  Often previous values are simply rolled over.

Unless values are challenged, the status quo assessment, even if wrong, must be paid.

 

20. Question:

Is it commercial reassessments negotiated over the whole year, to take affect after June?  I was hoping to get involved in this as a year round business.

Answer:

After the tax assessor has prepared the assessments and sent them out relying on either last year’s assessments or a recent blanket appraisal, his guard is up. Likely he’ll get besieged with dozens of phone calls and a flurry of inquires.

When the tax assessor is approached during this season of angst, it will be generally harder to achieve a meeting of the minds since his guard is up.

Commercial tax consulting is better done off-season. First off, the assessor’s office is relaxed and it will be easier to schedule an appointment. For instance, if the assessment notices go out on June 1st and the normal appeal period is June-July, try to do your reconciliation work before the June 1st date.

Getting to them outside the busy appeal window when their guard is down and they are least excited is the best opportunity for a meeting of the minds. Adjust your business to work the off-season for getting the best change of assessment results for your client. Your prime focus should be achieving success at the appraiser level.

 

21. Question:

Good Afternoon George, I purchased your Property Tax Consultant course last year and just as you predicted we are well in our way to a healthy six figure income. My partner and I created a CRM application (JASO)- to process  our pipeline in a seamless fashion (from client intake to productivity analysis) – this databases has been key to us in touching base with our customers on a timely manner as well as organizing every facet of our business - we see the value that JASO has been for us  and recognize  how valuable this could be for other Property Tax Consultants alike.

Currently the application is tailored for Florida however we are updating and customizing the CRM application to be relevant nationwide. We would love to market our product to your distribution list; if we could speak more in depth on the topic, I believe we can come to an understanding that is worthwhile for all parties involved, I look forward to hearing from you soon. Have a wonderful day and a pleasant weekend.

Answer:

Will make this service available to those who ask on request via mail@propertytaxconsult.com

22. Question:

I already know how to protest real estate taxes. I have been doing it for 26 years. It was suggested by the appraisal institute that I go out on my own and become a tax representative. Can you provide what is involved in setting up the business.

Answer:

This course if the cheapest course I know of. Other courses cost in the thousands and include 3 ring notebooks, seminars and take time. You start by getting your first client and working that case through the valuation materials found in the course.

Our course is done in pdf downloads that cover how to do the mathematical adjustments you need to make to all the various categories for any particular property, plus marketing material on how to set up you business, how to get clients, sales letters, contracts, (Sample Fee Agreement Forms, Fill In Fee Agreement Form, Sample Advisor/Agency Authorization Form, Fill In Advisor/Agency Authorization Forms, Residential Solicitation Letters, Signed Contract Transmittal Letters, Thank You For Choosing Our Company Letters, We Have Filed Your Appeal Letters, Invoice Form For Services Rendered, Enclosed Is Your Invoice Letters, Past Due Notice Letters .... )

If your client's yearly tax appeal date isn't due and the future date is a long way off, for example, if they have to wait 10 months for a formal appeal, you're only recourse is to make the appeal on the assessor level. If the assessor agrees to a lower valuation for your clients property, you have in essence won the case for your client. One must, however, wait until the formal appeal date to schedule an appeal to the municipal level if that is merited.

You should win 80% or more of the appeals and progress to a 90 - 95% average.

 

23. Question:

What about REO's properties?

Answer:

For those who do no know the definition of REO's, out of Wikipedia: "Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction.[1] A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property it is listed on their books as REO and categorized as an asset (non-performing)."

Bank, insurance companies and other financial institutions are lucrative targets for initiating property tax appeals. Most are not aware of this opportunity. These properties lie dormant on their books with the bank paying higher taxes on their properties than justified. Banks shy away from paying $300 for an appraisal and the extra costs of appeal. They will be very open for negotiating a blanket revaluation of their REO to a lower rate at a competitive contingency fee.

24. Question:

Hello.  I am working with home owners to fill out their exemption paperwork.   Most are unaware of the fact that they may receive these breaks.  Is there any info. on this subject in your material? 

Answer:

To answer your question, I survey and give detailed information about all the exemptions available. Naturally, one needs to look at the ones that apply in their particular jurisdiction. Every tax district is different.

But, you're absolutely right. Most homeowners do not know about exemptions they qualify for and if they don't file for the exemptions, they go by the wayside.

 

25. Question:

How about the legality of representing your clients does it need to be represented and sign by a legal/lawyer?

Answer:

The only state that requires licensing for a  Property Tax Consultant is Texas.

With a Power of Attorney agreement, you have the right to represent your client. The opposing attorney may make motion to stop you from representing a client by virtue that you are not a licensed attorney. As far as speaking for a client, you are not representing them in a criminal case, you are not practicing law. You have entered a limited power of attorney to speak for your client only on property tax matters. You explain that your limited power of attorney allows you only to present property tax evidence.

Certain lawyers hide behind the legal system and want to freeze everyone out. They want the easy bucks for themselves and you may have to go toe to toe with them to establish your property tax consultant turf-rights.

Many state jurisdictions permit you to represent a client without that client having to be present. You will likely not get challenged by attorneys and you’ll have no problems using the system. This is accomplished by having your client sign a limited power of attorney form (Advisor/Agency Form). With this signed Power of Attorney document you can present evidence and make the case for your client.

If that power of attorney is not honored or the turf battle hurdle too steep, you'll have to have the client present when presenting your case which is no big deal and should not present a problem. I just find it easier logistically when the client is not present.

If you're shot down with legalese about doing your job as a Property Tax Consultant, especially with commercial real estate cases, there are ways around this. These options include working with an attorney and/or appraiser on a contingency basis since you are the rain-maker. You set up the deal and should structure the percentages accordingly. These deals work out nicely with larger properties such as multi-family homes, office complexes, bank held REO properties, industrial properties and other large properties. This aspect of the business is where the really BIG money lies. This arrangement works in jurisdictions that require that you to be a licensed real estate appraiser in order to present accepted market values to the county tax appeal court.

Sometimes you can challenge the gatekeepers to allow your unlicensed professional evidence into the hearing. In the end, what matters is presenting believable well referenced information that leaves an impression with those peers overseeing and making judgment on the property in question. However, many times the authorities recognize you as a “recognized” professional tax consultant and will allow you to present your evidence.

If not, another way around this legalize is to coach your client. Coach them to present the evidence with you at his or her side. She or he will refer to you in order to verify facts and figures. This way you as a Property Tax Consultant get to wiggle right in and present the facts of the case, get to talk and make a complete presentation.

Keep your perspective open to the game. Realize that it's only because lobbyist's from special interest groups of lawyers and/or appraisers enact these freeze-out policies. They have intended to limit competition by creating barriers to entry from anyone claiming common sense, logic and "expertise" using 5th grade math and 8th grade English. Like I've said, there are ways around this, or, you can get the licenses needed to comply.

 

26. Question:

I presented my cases to the County Board of Equalization and the person representing the county assessors office (I think or he could have been a referee) stated to me and to the board that what I was doing is illegal according the the Nebraska Board of Appraisers.  I stated that I am not an appraiser but merely representing a client who wanted me to represent them.  Have you ran into this before and can I get into trouble doing this kind of work or is this an intimidation tactic?  I have been successful at this and I want to continue ...
 
Thanks for all of your help.

Answer:

This is a turf ground intimidation tactic. The only state that you need to be licensed as a Property Tax Consultant is Texas.
 

Since there is no license requirement in Nebraska for a Property Tax Consultant (as far as I know, just check and make sure), they need to back off. Until they put their efforts into passing a law for all Property Tax Consultants in the state to get licensed, what law are you violating?  

I've run into these turf battles and have consulted legel advice. They tell me that it's just a turf battle intimidation tactic.

However, if a "property tax consultant" is somehow prevented and not allowed to go in front of the board of Equalization and state the value on a property, then the property owner must be coached to go in front of the board to state the value.
 
The "property tax consultant" then will act as the property owners expert witness.
 
The property owner then asks the expert witness:
"how did you determine the square footage?".
"how did you determine the age of the home?"
"what price did you find for Comp #1"
"why was an adjustment made for xxx dollars for Comp#1"
"what was the reason for making that adjustment?"
 
.... and so on.
 
That's working within the law and an even better dramatic presentation that allows for an even better cognitive experience for all parties involved..

 

27. Question:

What do I need to compile for a typical case?

Answer:

This is what you'll need to compile:

•  Find 3 comparables to the clients property (Copies of Multiple Listing Service comparables)

•  Fill out a simple Excel Spread Sheet

•  1 or 2 pages of explanation's for adjustments

•  A cover page

•  Front view, street view and side view picture of subject home

 

28. Question:

Hi, how much of the work for this can be done from home on a computer or phone, and how much do you have to be "out and about" for?  Does it require time spent in person at government offices? Around here they close at 4 interfering with our regular jobs and that would make it impossible to do on the side. Great business idea and intriguing.  Thanks. Claudia

Answer:

About 1/3 of the time spent on phone and computer vs. 2/3 "out and about." One needs to meet with the potential client and get the contingency contract signed before diving into things. Then one needs to gather 6 or more comparable multiple listing service photocopies from a real estate office to work off of. Total time: 1/2 to 1 hour (not counting driving time).

Next on needs to analyze the data, find the best comparables and make the necessary dollar adjustments to determine currant market value. If there is a case, one need to make an appointment with the town tax assessor which could be scheduled around one's lunch hour if possible. A fair amount of cases can be resolved at this basic level. Time involved: 2 to 3 hours.

If there is no meeting of the minds with the town tax assessor, one has to take it to the next level and will be at the mercy of the assigned date and time given by the municipal board.

If you can work this into your schedule, nice part-time income.

 

29. 2 Questions:

Making good gains here on these Tax Appeals here in Michigan for commercial properties and your right, there is a lot of business out there for a tax professional with experience in appeals.

1. In Michigan we receive 2 tax bills, Summer & Winter, the Summer is the larger of the 2, its billed: July 1st.
The City allows the owner to pay Sept 15 without penalty.  Nearly all Clients take that opportunity.
Do you think its fair to bill July 1st, or wait until Sept 15th ?   I just send out the one bill that covers the smaller bill Dec. 1st and do that on July 1st, but get the calls when I do about date to pay, etc.

2.  I have been experiencing some very zealous municipality appraisers that want to conduct interior inspections, then of course, they measure every inch of ceramic, upgrade the Quality level on the Tax Record (cost approach) and it seems like the Record Card has 2 pages of every construction detail.  Other recent sales, on the Record Card, the details are not even added.  The Assessed Value goes up which the Clients see on their Valuation Notice.  We have the Taxable Value (50% of true cash value) which is what the bill is based on

How do we, or is there a way to counteract this 'retaliation' from the municipality is the way I see this. If you need a testimonial to use, feel free to use my recommendation.

Answer:

In New Jersey we get quarterly bills. To answer your first question, perhaps you could structure you contingency billing that allows the client to pay the total fee with a discount if they opted to pay that total early. Just an idea.

As you know, recent market value of comparable homes to a subjects home is the only benchmark for valuation at a given time and date. For commercial, the income method involves accounting stats in determining valuation. The only real answer to counteract the tax-hike zealots is for businesses and homeowners to scrutinize their valuations against reality at every assessment. Most don't realize that they can use a property tax consultant if they don't know how to do it or have the time to do it themselves. Many could save themselves a lot of money. There is always someone to help!

 

30. Question:

What is your lowest price on your property tax consultant kit?

Answer:

The cheapest lowest price is at housetaxax.com and use business skills to implement the process. It costs $39 for the residential and $39 for the commercial. I've spent well over $10,000 in past  training classes gaining my education in property tax consulting and how to effectively market the business as well as all the ins and outs.

The price of this course at www.propertytaxconsult.com is cheap, very cheap for what I feel is the best education for that business out there short of going through the training at the Appraisal Institute.

 

31. Question:

I am very interested in taking the residential property tax consultant business you have to offer. I have a few questions. Will this work in AZ? I have looked up some property tax services in AZ and they look very professional, how will I be able to compete with lawyers doing this? In the course do you go over the many questions that arise when talking to clients to get their business? How will I be able to answer in depth questions or will i tend to hear the same thing over and over? Is this a year round business or is it only good for certain months? when helping clients and winning cases will they get a refund from all the past years that were over assessed and how can i get a piece of that money? Again I am very interested in this career and want to do a fantastic job. Oh and one more thing will I have to spend hours and hours in court and drive down to the court for each tax appeal? can i do this in other states or is it only where i live? Thanks for your time and sorry for all the questions.

Answer:

I've put together questions from others at this page: www.propertytaxconsult.com/questions.htm   and it might even cover some questions you might not have thought about. It will work in AZ.

The only state so far that requires licensing as a property tax consultant is Texas. With residential cases you need not bother with attorneys. This is your edge, the client does not have to engage an expensive attorney and appraiser. You're contingency agreement (can be 80% to 100% of the tax assessment savings) allows you the incentive to present your clients appeal without a burdensome cost to the client, which, if the lost the case, would be depressing.

Commercial cases are different (much more lucrative) and you'll need an arrangement with an attorney if settlement isn't reached with the property tax assessor at a time before the Board of Equalization hearing is set. The course goes over all that might come up in regard to questions getting a clients business. These are similar questions that everyone has about contesting an unrealistic assessment. This can be a year around business, however it gets real busy around the appeal deadlines. Since the property tax assessor has the legal power to reduce an assessment at any time, one can present and represent their case to him or her during the year and the contingency agreement with the client ensures payment. 

Nothing stops you from doing this in other states other than travel considerations. There is the trip to the tax assessors office where presenting the evidence, resolution can be achieved. If there is no meeting of the minds, a one-time hearing will be held at a specific day at the Board of Equalization which may involve a few hours wait time. If resolution is not found there, the State Court of Appeal would be on a specific date and wait times may be relatively short.

32. Question:

Is there a way of collecting the payment(s) when I lower the tax bill in the off season rather then waiting a full year to get paid. Like when the new tax bill is recorded in public record can I show that to my clients and collect my money up front rather then waiting for the new tax season to come around? what type of payment would i get off a 130,000 to 300,000 home or what should i be targeting? I want at least 1000.00 dollar commissions.

Answer:

That kind of negotiation for upfront payment before they receive the tax savings reflected on their assessment involves making a concession on commission. The customer, although satisfied by their lower tax assessment, will look at their contingency agreement and think, “it's in my best interest to hold off paying until I really have to.”  So unless you make him/her a special deal ... .  So if you charged 100% of the first years tax savings, you'll need to negotiate to their sweet spot. I have not read “The Art of the Deal” but, there might be some good ideas there for this kind of negotiating skill.

If you're looking for $1,000 + commissions, look for higher property tax assessments,  higher than $5,000

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www.propertytaxconsult.com/questions.htm