With home values rising across the nation, many municipalities are experiencing a gold rush in property taxes. Although every city, county, and state operate independently, they all have the same thing in common - new homebuyers are paying higher taxes for comparable properties. You can help your buyer hold down their property tax bill by following just a few guidelines.

Most states ooperate by using the comparable analysis approach as its primary method of assessing residential real estate values. Properties in Texas, for example, are reassessed every three years, and some areas assess annually.

During the fist half of an assessment year, local county appraisal districts research and review records and maps of properties within their jurisdiction. The assessed value is multiplied by the tax rate, which is then set by each taxing entity.

Because of the sheer size of the re-appraisal task, many appraisal districts opt to apply computerized mathematical formlulas based on a number of market variables to arrive at a property value. Neighborhoods can vary by thousands of dollars within just a few blocks, putting some homes at risk of being taxed inaccurately.

By law, the appraisal districts must notify the homeowner when an increase is expected from the previous year. New tax rates are issued and the tax bill is usually sent to the homeowner by late summer or early fall to be paid by year end, January or February.

For homeowners, the time to find out the assessed value of their home is in March, April or May. They must determine if the appraised value is greater than or less than the market value of their home. They can contact the county appraisal district office and request their assessment record.

If the assessed value is greater, the owner can file a protest with the county appraisal office. If the protest is not filed within the guidelines of the county office, then the tax will have to be paid for the current year and a protest filed for the following year. Protest forms are usually available at the taxing authority's office.

When a protest is filed, the appraisal district will schedule a hearing. To prepare for the hearing, the homeowner should have several key pieces of information to assist the proceeding including photographs of the property, especially those showing badly needed improvements; a comparative market analysis for a period of one to two years for the neighborhood surrounding the property (photos of selected properties are also helpful;) and assessment comparables from neighboring homes, which are public information.

Most hearings are informal meetings between the taxpayer and an appraisal district representative. Other hearings are held before an appraisal review board.

According to Patrick C. O'Connor, MAI, president of O'Connor and Associates, there are four things your buyer can do to manage property taxes:

• Verify the appraisal district's data for the residence.
• Research values of nearby similar houses (assessment comparables.)
• Compare market value to assessed value by researching sales of nearby houses (market comparables.)
• Take advantage of procedures to file a protest or pursue litigation when appropriate.

Published: August 4, 1998

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.