Assessments not infallible, but few appeal

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Accepting the tax assessor's estimation at face value is basically the same thing, experts say.

Yet fewer than 2 percent of property assessments nationwide are challenged. That's according to the American Homeowners Association, a national consumer organization dedicated to representing homeowners and their interests. Lower- and middle-income taxpayers are the least likely to challenge an assessment, according to the group.

The last time Greenville County reassessed property values, about 9 percent of taxpayers appealed.

"This is literally the tax that hits people closest to home," said Pete Sepp, a spokesman for the National Taxpayers Union, an advocacy organization that publishes a 20-page guide to evaluating and appealing property assessments.

"You can never make the assumption that they have the basics of your property," Sepp said, pointing to the fact that with thousands of properties to assess, there's plenty of room for error.

For starters, advocates recommend checking to make sure a reassessment has the basic facts right: the correct age of the home, the right number of bedrooms and bathrooms and an accurate description of square footage.

Real estate agents and appraisers are good experts to turn to in a crunch, but most of the information homeowners will need is easily accessible online.

Want to know if your neighbor's home or land is valued at a significantly lower price?

It's easy to look up sales prices and tax values on the county's Web site, using its Real Property Search function. All that's needed is a name or an address.

County residents will have 90 days to appeal the newly assessed value of their homes once notices go out, likely sometime in July.

Property taxes are based on a percentage of a property's value, so the more a site or home is worth, the more that's generally levied in taxes.

Because mortgage companies receive a copy of the reassessment notice, those who escrow their taxes may see an effect on their bottom line almost immediately. If not and your assessment went up, it may be wise to save a bit more each month to cover any escrow shortage when the tax bill arrives at the end of the year.

While it can seem painful to the pocketbook, reassessment has its financial advantages.

An increase in the assessed value of your home means a boost in the equity stake you have after subtracting the outstanding balance owed on the mortgage. That could make it a good time to refinance, reports John Price, sales manager of First United Mortgage, a mortgage broker with offices across the state and in Greenville.

"Before, if you were coming up short on a refinance, say you wanted to pay off a debt, this may help you do something," Price said.

Often, it doesn't even require a pricey appraisal to show proof of escalating value, he said. The county assessment is enough.

And for homeowners who pay private mortgage insurance — required for most mortgages with down payments of less than 20 percent — the higher assessment may boost your equity enough to get out from under it. Although some lenders require a certified appraisal of a home to remove the insurance, a higher assessment could signal it's time to pay for such a service.

Getting rid of a monthly mortgage insurance payment can save hundreds, if not thousands, of dollars over time.

Some property owners don't appeal an overvalued reassessment because they believe it will improve their chances of selling their home for a higher price, experts say.

Unless a homeowner is planning to sell during the next year, that's faulty logic, said Sepp of the taxpayers union.

"Do you want the potential of tax savings in your hand right now? Or would you rather keep paying the high taxes on the prospect at some point in the future it will be one of many bargaining chips when you sell your home?" Sepp asked. Heidi Coryell Williams can be reached at 306-3302.