FAQ's

  1. How long does this process take? Generally we can negotiate a reduction with the local Assessor that is satisfactory for the homeowner, within the 1st month after the start of the appeal process. If we cannot reach an agreement with the Assessor on the true market value, we will file with the March Board of Review. Who must notify the homeowner of their determination by the first Monday in June.
  2. Why does the process take so long? The State of Michigan made the process cumbersome for the homeowner, knowing that most homeowners will eventually give up. This is why hiring a professional company to perform the appeal is much better for the homeowner. You do not have to worry about how long the process takes or how much time you will lose having to leave work for meetings.
  3. Why are you better at negotiating with the Assessor than me? When meeting with the Assessor, we generally take multiple cases in at once (up to 50). This is a huge advantage in negotiating, as there are 2 things the Assessors know for sure. First, we know what we are doing; and second, we are not going away. It is relatively easy for the Assessor to deny an individual homeowner, knowing the homeowner will drop out sometime during the arduous process. As a paid agent representing the homeowner, we will not drop out so it is much easier to work with us from the beginning.
  4. My municipality lowered both my SEV and Taxable Value, why do I need you? In the rare case of the local municipalities lowering both the SEV and Taxable values, this was done as a stop gap practice. They rarely lowered the amount to reflect the true market value. The data they use is approximately 1 to 2 years old and doesn't reflect the current market conditions. Also "blanket" reductions allow the Assessors and local tax board to justify denying any further reduction asked by the homeowner. The standard response would sound like this, "We lowered your property value the same amount as everyone else's, why do you think your home should be valued less?" The valuation of a home is an individual value and it's difficult to justify a "blanket" reduction across the community. A blanket reduction is easier for the Assessor and may appease most homeowners, but it is hardly done with your best interest in mind.
  5. Will this affect my mortgage value or any additional financing? No, the municipalities don't communicate with the banks concerning taxable values. Your Taxable Value is initially determined by the purchase price paid when submitted to the Registrar of Deeds.
  6. Why is an appraisal more accurate than an assessment? The appraisal is more accurate because it focuses on your unique property and is more current. The Appraiser will analyze your home using similar active listings in your neighborhood or in close proximity. The Assessor is not likely to use listings. As a Homeowner you know that if your neighbor has a similar home and it isn't selling, then your house is probably not worth any more than theirs. The Appraiser will look at active listings as indications of the upper limit of value. The Appraiser may go outside the municipality that the Assessor draws his/her data from. This is only done when absolutely necessary, but is often done to find the most relevant sales and listings that will reflect the value of the home being appraised. There are many different values a property can have: Assessed Value, Market Value, Liquidation Value, Insurable Value, etc. The most convincing argument for the value of a property is a "market value" appraisal performed by a properly licensed and competent Appraiser.
  7. Can I use this appraisal to lower my PMI and Tax Escrow account? Yes, having a "Market Value" appraisal could reduce the need for PMI insurance, as this may change the ratio of equity to value and affect the amount you pay monthly. Also with a successful tax appeal, your tax escrow account would be recalculated to reflect the change in the amount of taxes due, lowering your monthly payment.
  8. Does anyone need to come into my home? Yes, in order for us to accurately determine the "True Market Value", we need to have an appraisal of your home. We use State Licensed Appraisers who will schedule a time that is convenient for you. Some companies may offer a "drive by" appraisal, but this doesn't necessarily take into consideration the uniqueness of your home and is generally not as accurate in determining market value. A "drive by" appraisal is also more difficult to justify as this is similar to the mass assessment the municipalities use.
  9. How much does this cost me? We have a multi-tiered pricing plan for Forbes to act as your agent. The cost of $349.00 covers generating the "Comparables", an appraisal determining the "True Market Value" of your property, meeting with the Assessor and an appeal to the March Board of Review (if required). Even if the calculator finds we can't reduce your tax liability, you can purchase the appraisal using our discounted pricing of $249.00.
  10. What happens if the municipality refuses to reduce my Taxable Value? We can file an appeal with the Michigan Tax Tribunal. Overall, the process follows these steps:
    1. Meet with Assessor to review the market value appraisal and ask for reduction;
    2. File an appeal at the March Board of Review (BOR);
    3. File a formal appeal with the Michigan Tax Tribunal.
  11. Is the filing with the Michigan Tax Tribunal (MTT) included in the price? No, generally we can negotiate a reduction at the Assessor level and don't feel we should charge for this with the initial purchase.
  12. How much does it cost to have Forbes Tax Advocates represent me at the MTT? We charge $199.00 plus filing fees (if required) to represent you. The Tax Tribunal is a branch of the court that specifically deals with tax matters.
  13. Is it worth it? Yes, the Market Value Appraisal will show not only the current value, but will also determine the values for the previous 3 years. When Forbes Tax Advocates files an appeal with the MTT, we ask for the current year adjustment and the past years reductions. If the court determines we are correct, you are entitled to the difference of past tax dollars paid, plus 12% interest per year.
  14. Do I still need to pay my taxes? YES! Your taxes still need to be paid! The State of Michigan's Property Tax Appeal process is cumbersome to say the least, but this is the only way to get the taxable value to represent the "true market value" of your home. Generally, when negotiating with the Assessor the value will be reduced for the next tax period.