Most people pay without reviewing their assessment
Each year, local tax assessors issue property valuation notices. For many homeowners, the number is accepted without question. The bill is often paid automatically through escrow, and the process ends there.
However, the assessed value is an estimate. It is generated using mass appraisal models and market data that may not fully reflect the specifics of your property. In some cases, the value may be higher than warranted.
In Texas, this is especially time sensitive. The deadline to file a property tax protest is May 15. If you own property in Texas, it is important to review your assessment before the deadline.
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Why assessments can be inaccurate
Assessors do not evaluate every home individually each year. They rely on comparable sales data and regional valuation models. While this approach is standard practice, it can lead to discrepancies, particularly in markets that have experienced rapid price increases.
Short-term rental properties can face additional challenges. Unique homes often have limited true comparables. When nearby sales do not closely match a property’s characteristics, the resulting valuation may not be precise.
In some cases, the purchase price also influences the assessed value. If a property was bought based on income potential rather than traditional residential value, that price can affect future assessments. Over time, this can create a gap between assessed value and market value.
The appeal process
All states provide a formal process for challenging property tax assessments. Depending on the state, this may be referred to as a protest, grievance, or appeal. Property owners have the right to submit evidence supporting a lower valuation.
Despite this option, many homeowners do not file. The process can require research, documentation, and, in some cases, participation in a hearing. For busy owners, especially those managing rental properties, it can be difficult to prioritize.
As a result, potential savings often go unrealized.
The potential impact
According to Ownwell data, 88% of customers who file an appeal receive a reduction.1 The average annual savings among those who save is $774.2
For short-term rental owners, that reduction can meaningfully affect net operating income. Because property taxes recur annually, a successful appeal can lower future tax bills as well.
How Ownwell supports the process
Ownwell is a property tax appeal service that manages the process on behalf of property owners.
After signing up, which takes about two minutes, their licensed professionals review the assessment and determine whether there is a case for appeal. If so, they handle the research, filing, and hearings. Owners do not need to attend proceedings or manage the documentation.
Ownwell operates on a contingency basis. If no savings are achieved, there is no fee.
The company serves property owners in Texas, Florida, Georgia, California, Illinois, Washington, New York, Colorado, and Pennsylvania.
Check your property tax savings estimate.
Final note
Many property owners never verify whether their assessed value aligns with market conditions. Some assessments are accurate. Others are not.
If you own property in a state where Ownwell operates, reviewing your assessment is straightforward and does not require any upfront cost. Savings only occur if a reduction is secured.
This post was written in partnership with Ownwell.
