Property revaluation is an essential aspect of maintaining an equitable taxation system. It involves updating property assessments to reflect current market values, ensuring that property taxes are fairly distributed among property owners. While the revaluation process is necessary, it can sometimes be prone to errors that may impact the accuracy of the assessments and lead to issues for property owners, local governments, and other stakeholders. Here are some of the most common errors that can occur during the property revaluation process for you to keep an eye out for to succeed on appeal.
 
Inaccurate Property Data
 
The foundation of any property revaluation is the accuracy of property data. If the data collected about the property is incorrect or outdated, the revaluation can be flawed. Common data errors include:
 

• Incorrect property size or boundaries
• Wrong property use classification
• Outdated information on renovations or improvements

 
Impact: This can result in the property being valued too high or too low, leading to tax disputes and unfair tax burdens on property owners.
 
Failure to Consider Local Market Conditions
 
Property values are significantly influenced by local market conditions, including factors such as neighborhood desirability, proximity to amenities, or the state of the local economy. Failing to account for these factors can lead to inaccurate valuations.
 
Impact: This oversight can result in an inaccurate valuation and over-assessment of taxes, especially if some areas are undervalued while others are overvalued.
 
Use of Incorrect Valuation Models
 
Valuation models are integral to determining the property’s market value. However, using the incorrect model can skew results. Income producing properties should be valued on the income approach, properties used for commercial purposes and owned by the user should be valued on the cost approach. Here are some other examples of use of incorrect valuation models. 
 

• Relying on the Sales Approach instead of the Income approach in small multifamily product.
• Not properly applying the correct approach to company assets.

 
Impact: This can lead to systematic errors in property assessments, resulting in incorrect valuations across the board.
 
Human Error in Data Entry or Processing
 
While modern technology has automated much of the property revaluation process, human error is still a significant factor in many cases. Errors during data entry, misinterpretation of market trends, or incorrect calculations can all affect the revaluation process.
 
Impact: Small errors can accumulate and lead to larger systemic issues in the revaluation process, affecting the accuracy and fairness of property taxes.
 
Overlooking Special Property Features
 
Some properties have unique characteristics that can significantly affect their market value, such as historical significance, environmental features, or specific zoning requirements. If these attributes are not properly considered during the revaluation process, it can lead to errors in valuation.
 

• Not accounting for historical preservation status.
• Ignoring environmental factors.

 
Impact: Failure to recognize these unique features can lead to valuations that don't accurately reflect the true market worth of the property.
 
Discrepancies in Comparable Property Data
 
In property revaluation, valuers often rely on "comparable sales" (comps) — recently sold properties that are similar in size, type, and location to the property being valued. However, discrepancies in how these comps are selected or analyzed can lead to errors.
 

• Using comps that are too dissimilar.
• Excluding relevant comps

 
Impact: The final property assessment can be artificially inflated or deflated if the comparables used are not accurate, leading to tax disparities.
 
The property revaluation process is critical for ensuring that property taxes are distributed equitably among taxpayers. However, errors may occur and that is why the appeal process exists. Addressing these issues requires careful attention to detail, transparency in the process, and the use of accurate and up-to-date data to succeed on appeal. By recognizing these errors and addressing them in your property valuation appeal you stand a better chance of getting your property valued at market value and winning your appeal.
 
If you have concerns about an error in your property revaluation, start with a visit to the New Hanover County Assessor’s website to use its system to review your revaluation.  If you would like to consult an attorney for legal representation you can contact Carolina Revaluation Services, a joint venture of The McIntosh Law Firm and Shaheen Law PLLC. Their website is www.NCReval.com and you can call them at 980-689-4289.  They have experienced attorneys ready to assist you with both residential and commercial appeals. Your first consultation is free.