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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 This can happen if they rely on outdated or incomplete data or if home values in your area have declined since the last assessment.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 Common errors include incorrect square footage, an inaccurate number of bedrooms or bathrooms, or outdated details about renovations and improvements.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!

Debra K. Cooper SRES, ABR, CSA, SFR & GREEN - Masters Diamond, Eme Century 21 Atwood Chanhassen, MN (612) 501-8597 20413656 Real estate is not just about buying or selling property.....It's about setting and building upon a foundation for your future. You've come to the right place. As your Realtor I promise to always have your best interest in mind whether buying, selling or both. I'll be there as your coach, your mentor, your teammate. I'll even try to make the process fun and keep you informed every step of the way. As a lifelong resident of the Twin Cities, living in the west metro I know this market well. Licensed and working as a full time Realtor since 2003. You owe it to yourself to work with a Realtor who is not only knowledgeable about this market, but who is experienced. I've sold hundreds of properties of all types here in the metro area and beyond. Whether that means you are buying your first home, selling or buying one of many homes, or you are looking to buy investment property, you deserve the same attention to detail. Buying or selling real estate is an exciting and complex adventure. It can also be a very time-consuming and costly one if you are not familiar with all aspects of the process and don't have the best information and resources. I've built my business primarily by way of referrals and past clients - something I'm very proud of and the highest praise I can possibly receive. Regardless of where you are at in your life, I know that I can help make this a great experience for you and maybe we can also have some fun while we are at it! Please contact me when you have a moment. I'm looking forward to meeting and working with you! Licensed since 2003 - Hundreds of Properties SOLD! Masters Diamond, Emerald and Ruby Award Recipient Quality Service Pinnacle Award Recipient Named "SUPER REALTOR "Eight Times!! by Minneapolis/St. Paul and TC Business Magazines Contact Me Send a Referral Subscribe to Newsletter