Will Filing a Tax Grievance Hurt My Home’s Resale Value?

Filing a tax grievance could help with the sale of your property.

A lot of homeowners hesitate to file a property tax grievance because they’re worried it might “look bad” when they eventually go to sell. Some even think it will lower the appraised value of their home, or signal to buyers that something is wrong with the property; however, that is 100% false. In reality, a lower assessment can actually make your home more attractive to buyers, not less.

The reason, is that when a buyer (or their lender) is evaluating a home, they don’t rely on your assessment to determine market value. Instead, they rely on actual market comps and the bank’s appraisal. Accordingly, your assessment has absolutely no negative effect on your home’s value in a sale. It only affects what you pay in taxes while you own it.

In the alternative, something that does matter to buyers is your annual tax bill. If your taxes are lower than comparable homes because you filed a grievance, that’s a clear financial advantage to any prospective buyer.

In fact—and this is important—a pending grievance can even be assumed by the buyer at closing. Meaning if you file the grievance before you sell, and the case is still in progress at the time of closing, the buyer can step into your shoes and continue it. That is actually viewed as a positive since buyers love knowing potential savings are already in motion.

Accordingly, a tax grievance does not lower your home’s sale price or appraised value, scare off buyers, or affect your ability to get full market value. Instead, a tax grievance can reduce your tax bill, make your listing more attractive in buyer affordability calculators, and give the buyer an immediate “value add” they don’t have to initiate themselves (or wouldn’t otherwise be able to initiate if the filing period expired).

The bottom line is that filing a tax grievance before selling is not a weakness—it is often a negotiating strength. Accordingly, filing a grievance does not hurt you. It can only help you or help your buyer. And smart buyers know it.