Property Tax Advocates Blog

1) Expertise - A property tax consultant must be an expert in real estate valuation, property tax laws and property tax appeals.  A strong knowledge of these three aspects is what makes a property tax consultant valuable.   

In real estate valuation the three approaches to value are the Income Approach, Cost Approach and the Sales Approach.  In Texas property tax appeals we use a fourth approach know as the equity approach.  The equity approach compares the values of similar properties to determine a median level of appraisal.  A property tax consultant should understand each approach and know which approach is most appropriate and beneficial for the owner.

In Texas, property tax reductions can be negotiated in one of two ways: by demonstrating that the market value of a property is less than the appraisal district's proposed value or by demonstrating that the property is overvalued when compared to "a reasonable number of comparable properties appropriately adjusted".  This latter method of appraisal, commonly referred to as the Equity Method of Appraisal, takes precedence over the market value appraisal. 

Its intent is to ensure that properties are being valued in a fair and equitable manner with competing properties after adjusting for differences in the properties.  Consequently, newly purchased properties may receive property tax reductions below their purchase prices if they are being appraised inordinately high when compared to other properties.