Using Zillow to Help With Your Property Tax Appeal
It's a free and functional tool that can help you determine comparables in your property tax appeal.
Zillow's opening back in 2006 launched a new arena for homeowners to research and evaluate properties.
At their website, Zillow offers a free, do-it-yourself comparable valuation report for both buyers and sellers.
They offer different valuation tools to help homeowners track how much their single largest asset is worth.
"Zestimate" provides a rough estimate based on Zillow's proprietary statistical valuation algorithm - a great starting point to understand an appropriate range of value.
It also offers a "Zindex" - their guess at the median value of your home.
For a more defined estimate, Zillow provides another tool called "My Zestimator".
It is built around techniques consistent with those of an appraiser.
The user edits the facts that Zillow has on file for their home, and selects what they believe are the best "comps" in the neighborhood.
Zestimator then produces a better estimate.
According to the site, Zillow seeks to provide (and claims) 90% accuracy.
But just how accurate is Zillow? The Wall Street Journal analyzed 1,000 recent home sales and found that Zillow's Zestimates were amazingly good - often within a few percentage points of the property's sales price.
However, when Zillow is bad it can be really bad - off by as much as 25% on one in ten homes.
In property tax appeals, an essential component is valuation and comparables.
Is Zillow the perfect source for comparable valuations for your home? Probably not.
However, for the price (free) it is a great starting place to get a handle on what you need to prepare for your property tax appeal.
There is a short window every year when you can challenge your property assessment and challenge your tax bill.
Do the research.
Be ready.
Use tools like Zillow and a comprehensive handbook and presentation format as found in Property Tax Appeal Guidelines to help you prepare your appeal.
So is now the time for you to appeal your property tax bill? Sometimes it's as simple as seeing your tax bill go up and your property value go down.
It might be a major change in your neighborhood - rezoning, foreclosures or a new highway a block away.
Or it may just be the nationwide downward spiral of home values that we can't seem to slow quick enough.
In any case, it's important to be aware of what is happening to know if it's time for you to appeal your property assessment.
There are many reasons behind a change in property values.
Here are a few to be aware of:
- Home prices in your neighborhood are heading downwards.
- The property description on your assessment or your tax bill is inaccurate.
An example is having your single family home being listed as a town home. - The condition of your home has declined.
This could be from environmental reasons, aging of the roof, foundation or flatwork cracking or simple deterioration. - There is a change in the neighborhood environment.
Rezoning, increases in traffic, new commercial buildings or highways, and changes in drainage can all contribute.
A reassessment or levy increase can cause a spike in your property tax bill of hundreds of dollars - every year.
If you don't remain diligent, you can leave thousands of dollars on the table for the tax man to take away.
It doesn't take a lawyer - it just takes a little time and research - for you to make sure your next tax bill isn't a surprise, but fair.