Cleveland Real Estate Forum
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated about 1 year ago on . Most recent reply

Challenging Property Taxes in Cuyahoga County
I'm wondering if anyone's had success lowering their property taxes and if so, what were the steps they took to be successful?
Property taxes can be a huge impact on your cash flow based on the city you buy in. From what I understand if you buy a distressed property at a good deal and the county has the home valued higher than what you purchased then you have got a good case for the county to lower it to your purchase price.
I'm going through the process for the first time now. Here's what I did:
1. Used county records to see what the house is valued at https://myplace.cuyahogacounty.us/
2. Since I was able to purchase the home for $25K less than what was valued, I submitted a form through the county
https://treasurer.cuyahogacounty.us/en-US/contesting-property-value.aspx
Now I'm just waiting.
Let me know what experiences/ tips you may have with this. Thanks for your help
Thanks
Most Popular Reply

You are correct. Property tax in Cuyahoga County is based upon actual value.
When you purchase a property in an arms length transaction, in the open market; that transaction is a significant data point in determining its value. The county will also look at other recent sales to determine your market value.
If you could flip your house today at a higher price without any repairs, then the the fair market value for tax purposes is the price you could sell it for today.
Keep in mind that buying from a foreclosure sale or an off market deal where the seller (not the property) was distressed is not a considered an arms length transaction.
When you make improvements to the property, known as rehabilitation or renovation; you necessarily increase the value. If the panel is doing their job, they will ask if you made any repairs or improvements.
If you asked for a 20% or greater reduction in your complaint, this will likely result in a hearing. At the hearing, the panel will have their laptop with the MLS open, and will verify values of neighboring properties. So be prepared with your own printed reports.
When you file your complaint, you should do a thorough analysis of comparable neighborhood properties. You need to prove that your property has a lower value.
What is the average price per square foot for the 10 most recent sales in the area? That is one way to point to your base value. Then you can deduct for deficiencies on your property.
If you have a real estate agent have them do a BPO. If you are asking for more than 20% reduction, you might want to hire a licensed appraiser.
If you had an independent third party I nspection, you can bring the inspection report to the hearing. This is a great way to rstabish the property’s deficiencies. Bring photos showing the condition of the property.
A rental log showing below market rents... or a vacant property is also an indication of lower values. They will usually ask if the property is rented. High rents are are indication of property value. Remember, income is one of the three approaches to appraise a property.
I have filed many property tax complaints for clients and for my own properties and prevailed in most of them. The folks who make the decision are fair, but they are not stupid. Prove the new value and you will win the complaint... what would the property sell for today in an arms length transaction in a fully informed market (MLS).
Sometimes you can get lucky just by showing that you paid less that the county appraised value, and stating that you have not made any improvements. But it is better to prove your case by comparing your property with other sold properties.
Remember, once you improve the value (new roof, windows, siding, electrical, kitchen, bathrooms, etc) then the tax valuation should properly increase.
The county adjusts values every three years.
Good luck
Bob