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Answers to an Inaccurate Property Tax Assessment - 7/30/2025

Each year, homeowners receive a notification of their property tax assessment, which, when combined with the local tax rate, determines how much they owe in property taxes. While this process is meant to fairly reflect a home's value, assessments are not always accurate. If the valuation is incorrect, homeowners may end up paying more than they should. Fortunately, you have the right to challenge the assessment if you believe it is inaccurate.

Here are some of the most common reasons a property tax assessment may be incorrect:

  1. Overvaluation - Assessors estimate your home's market value, but if they overvalue it, your taxes will be higher than necessary. This can happen if they rely on outdated or incomplete data or if home values in your area have declined since the last assessment.
  2. Errors in Property Information - Mistakes in the assessor's records can lead to an inflated value. Common errors include incorrect square footage, an inaccurate number of bedrooms or bathrooms, or outdated details about renovations and improvements. If the records show more features than your home actually has, you may be paying too much in taxes.
  3. Comparable Sales Discrepancies - If similar homes in your neighborhood are assessed at a lower value, your home's assessment may not be consistent with market trends. Assessors use comparable properties to determine value, but if they fail to factor in differences—such as location, lot size, or condition—it could lead to an unfairly high assessment.
  4. Market Value Decline - Real estate markets fluctuate, and if your property's value has dropped since the last assessment, your tax bill may not reflect the change. Assessors do not always adjust values quickly enough to keep up with market shifts.
  5. Damage or Deterioration - If your home has suffered significant damage—such as structural issues, fire damage, or foundation problems—it could be worth less than its assessed value. If these factors aren't considered, you may be overpaying.
  6. Incorrect Classification - If your home is classified incorrectly—such as being assessed as commercial property instead of residential—it can result in a much higher tax bill.
  7. Exemptions Not Applied - Many homeowners qualify for tax exemptions, such as homestead, senior citizen, or veteran exemptions. If these were not applied, your tax bill could be higher than it should be.

If you believe your property tax assessment is incorrect, you have the right to challenge it. This typically involves gathering evidence, such as recent comparable home sales, correcting errors in the property records, or providing proof of market decline or damage.

Your real estate agent can be a valuable resource in this process. They can help you find comparable sales data and provide insights into market trends. If you have questions about your property's value or the process of appealing your tax assessment, reach out to your agent—they're there to help!

The Alan Smith Team RE/MAX PROFESSIONALS Littleton, CO (303) 503-2526 98573T Alan J. Smith CRS, GRI Broker/ Owner RE/MAX Professionals Alan has been a licensed Realtor since 1983. He is one of the Broker/Owners of RE/MAX Professionals, and holds the CRS, GRI, CDPE, and CLHMS Designations which gives him expertise in all aspects of negotiating Residential Real Estate including as a Certified Luxury Home Marketing Specialist. He is also a CRB Candidate which specializes in Residential Brokerage Administration. After spending 10 years with Century 21 early in his career, Alan joined RE/MAX Professionals in January of 1994. Alan absolutely enjoys working with the best Realtors in the business and thrives with the Top Producers and True Professionals at RE/MAX Professionals. He is a member of the RE/MAX Diamond Award Club, and has been inducted into the RE/MAX Hall of Fame and received the Lifetime Achievement Award. Alan entered the Pinnacle of RE/MAX Honors in 2010 as he was inducted into the RE/MAX Circle of Legends. . He is a Broker/Owner of RE/MAX Professionals with 9 offices and approximately 500 agents. Alan is currently the President of Professionals Investment Group, d/b/a RE/MAX Professionals, and also served as the Chairman of the REColorado Board of Directors, and currently is a Director on that Board. Alan J. Smith RE/MAX Professionals 8500 W. Bowles Avenue, Suite 100 Littleton, CO 80123 303-503-2526 Cell 303-932-3306 Office alan@alanjsmith.com TheAlanSmithTeam.com Contact Me Visit my Website Send a Referral Subscribe to Newsletter