Should You Hire a Property Tax Consultant?

Hiring a property tax consultant may sound like a good idea, but you must keep a few important things in mind before you make the final decision. Before you decide to hire a property tax consultant, make sure you find one with a good reputation and reasonable fees. Avoid any consultant with dubious claims. For instance, a property tax protest company that is only in its second year in the Texas market. Some of my readers have questioned their marketing materials.

A property tax consultant will begin by reviewing the assessed value of your subject property. They will use several sources to verify the assessed value and compare it to market values of similar properties in the area. Once they have gathered enough data, they will start developing a case to challenge the assessed value and force a reduction in real estate taxes. The investigation process can take a few weeks, and the appeals process can take months. In either case, you should be able to get a reduction within a year or so.

A real estate tax consultant will charge an up-front fee, which includes research tools, time, travel, and collections. Some of them work on a contingency basis, meaning they only charge their clients if they save you money on property taxes. While this may seem like a high fee for a small amount of work, consider that a property tax consultant can save you tens of thousands of dollars per year. That way, you can benefit from their expertise for years to come.

There are no formal education requirements for becoming a property tax consultant. Most colleges and community colleges offer courses in real estate, property appraisal, and taxation. Many property tax consultants have direct experience in the real estate industry, including sales and appraisal. They can also work under the supervision of an attorney. It's important to know your market before hiring a property tax consultant. You don't want to make a mistake that may cost you money.

Another benefit of hiring a property tax consultant is that they are experts in real estate valuation. Their understanding of three valuation approaches will help them provide you with the most effective advice for your situation. While many property owners think they can prepare their taxes without a professional, mistakes and deadlines can happen. A property tax consultant can review values, prepare valuations, and file protests - all while keeping you ahead of the game. They'll also ensure you don't miss any deadlines.

The cost of hiring a property tax consultant depends on the type of property. Some offer flat fees, others work on a percentage of their tax savings. When hiring a consultant, make sure the fee structure is clear. Some property tax consultants only charge if they save you money. Make sure to compare several different consultants and get all the information in writing. Then, you'll know which one is the best fit for you. And don't forget to hire the right person for the job. Check out this related post to get more enlightened on the topic: https://en.wikipedia.org/wiki/Tax_advisor.