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 This can happen if they rely on outdated or incomplete data or if home values in your area have declined since the last assessment.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 Common errors include incorrect square footage, an inaccurate number of bedrooms or bathrooms, or outdated details about renovations and improvements.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

EXIT Prime Realty & EXIT Realty Mitchell ABR, SRS, C2ex, CREN, CREM, CLE EXIT Prime Realty & EXIT Realty Mitchell Mitchell, SD (605) 999-0276 15848 Our mission is to inspire a positive, enduring impact and to establish leadership within the Mitchell Real Estate Industry, while enhancing our reputation throughout South Dakota. Since our establishment in 2005, we have provided our clients with extensive knowledge and expertise in the real estate sector. As a locally owned company recognized on a national level, we offer our clients extensive reach within the real estate market. At EXIT PRIME REALTY and EXIT REALTY MITCHELL, we are guided by the following values: COMMITMENT. We are devoted to delivering the highest standard of service by being solution-oriented and consistently striving to meet our clients' needs. OWNERSHIP. We hold ourselves accountable to the highest standards, continuously raising the benchmark to foster improvement in our operations. DRIVE. We are determined to excel in all aspects of our work, collaborating as a cohesive team to support and encourage one another, while refusing to accept anything less than extraordinary outcomes. HUMILITY. We recognize that our success is built upon the diligent efforts of each team member, as well as the support of our families and clients. INTEGRITY. We are committed to honesty and consistently doing what is right for our team, our business, and our clients, which ultimately leads to mutual success and respect. PROACTIVENESS. We prioritize innovation and are continually seeking ways to enhance our collaboration with our team, our business, and our clients. EXCELLENCE. We deliver unparalleled professionalism and exceptional service, maintaining our position as leaders in innovation through education and technology. CHARITY. We are passionate about contributing to our community and making a positive difference by assisting those in need. Contact Me Visit my Website Send a Referral Subscribe to Newsletter