If you’re planning to sell your house, you’re juggling two goals: getting the best price and keeping costs low until closing. One often-overlooked way to do both is by filing a property tax appeal. If your home’s assessed value seems higher than what the market supports, a successful appeal can lower your holding costs now. It can also present a more buyer-friendly tax picture for the next owner. In many counties, a successful appeal can shave hundreds (if not thousands) off the closing bill, making your listing that much more competitive.
Why Property Tax Appeals Pre-Sale Might Be Smart
There are many reasons why you should appeal your property tax before selling your home:
Benefit to the seller: A successful property tax appeal reduces your current-year tax liability. Because most states prorate taxes at closing, a lower annual bill means you owe a smaller share. This means more cash in your pocket when you hand over the keys.
Benefit to the buyer: When determining what property to buy, buyers consider monthly affordability for mortgage, insurance, and taxes — not only the sale price. Lower property taxes before selling can make your listing stand out by reducing its ongoing costs. For investors, whether in short-term rentals or multi-family properties, lower taxes also improve key metrics such as cap rate and cash flow.
A better price narrative: If your assessed value exceeds market reality, buyers may assume your home is overpriced. A successful property tax appeal aligns public records with the actual value. For more context on how property value determination works, see market versus assessed value.
For an example of why pre-sale property tax appeals are smart, suppose your appeal shaves $500 off your annual bill. For a buyer paying through escrow, that’s about $42 per month less — enough to pay for a couple of subscriptions, like Netflix and Amazon Prime.
Small savings like this can make your listing feel more affordable and help it stand out in a competitive market.
How Can Property Tax Appeals Lower Closing Costs?
Property tax appeals can lower closing costs by reducing the amount of property tax you owe at the time of sale. Since most real estate transactions prorate property taxes between buyer and seller based on the closing date, a smaller annual bill means you’ll owe a smaller share when the deal closes. This is one of the most effective ways to lower property taxes before selling your home and keep more of your proceeds.
Here’s how that works in numbers:
Item | Prior assessed value | After 10% reduction |
|---|---|---|
Assessed value | $500,000 | $450,000 |
Tax rate (example) | 2.0% | 2.0% |
Annual tax bill | $10,000 | $9,000 |
Annual savings | – | $1,000 |
If you close halfway through year | You owe ~$5,000 | You owe ~$4,500 |
Cash-in-hand difference at closing | – | +$500 |
If you close halfway through the tax year, your prorated portion could drop by about half, saving $500 at closing.
For homeowners wondering how to lower property taxes before selling, that’s a big chunk of money that goes into your bank account instead of the county’s. For investors and single-family rental owners, the effect can be even greater. Lower taxes improve net operating income, strengthen your property’s financials, and can make your listing more attractive to serious buyers.
Does the Appeal Timeline Align with Your Sale Date?
If you anticipate putting your home on the market in the next 12 – 18 months, now is the right moment to act on a tax appeal. Why? Because:
Many counties determine a property’s assessed value as of January 1 (or another fixed date) each year.
Filing your appeal before that assessment date means you’re likely to lock in the lower value for the
entire upcoming tax year.
If you wait until after listing or after accepting an offer, you may miss the cutoff, and the new buyer inherits the higher tax base.
Quick checklist:
Find your county assessor’s valuation date
Check the filing deadline (often 30-60 days after notice)
Determine when the next tax year cycle begins
Estimate your listing date, then work backwards
If you are selling within the next 6 months, you might still benefit, but the savings may be smaller if the adjustment applies only to a portion of the tax year.
How Long Does the Appeal Process Take? Should You File Now?
Property tax appeal timelines vary by county and state, but here’s a general outline of how long a property tax appeal can take from start to finish:
Review window opens (30-60 days): After receiving a notice of your property’s assessed value, you will have a limited window, typically of 1 to 2 months, to file your appeal.
Informal review (2-4 weeks): Some counties offer an informal phase to correct errors or settle based on evidence you, or an authorized agent, bring to the hearing.
Formal hearing/board (1-3 months): If unresolved, you’ll present your evidence to the local appeals board. Evidence includes recent sales, a professional appraisal, and photos.
Decision and adjustment (a few weeks to several months): Once the board makes a decision, your property record is updated. If successful, your tax bill is recalculated, resulting in a refund or credit.
Because these steps can span several months, you should get started as soon as possible. Appealing early helps save taxes and ensures that your property already reflects a lower assessed value by the time you’re ready to list.
What Are the Risks of Filing a Property Tax Appeal Pre-Sale?
Although lodging a property tax appeal ahead of a sale can yield real savings, it’s not without its hurdles:
Time and resources: Gathering comps, photos, repair estimates, and attending hearings takes time — time when your listing should be getting showings.
Professional cost: If you engage a property tax company or firm, fees may range from a flat rate to a contingency of saved taxes; you should factor this into your net gain.
Potential for reassessment upward: While rare and state-dependent, if the board determines your home was under-assessed, your value (and tax base) could increase.
Impact on buyer perceptions: If you list while the appeal is still pending, some buyers may worry about uncertainty over final tax status.
If you decide to work with a tax-appeal firm, ask: What’s your success rate? Do you charge upfront or based on savings? What’s the average timeframe for resolution in this county?
Ownwell, for example, can minimize these risks by leveraging verified comparable data, local assessor insights, and expert case preparation.
Make the Informed Choice Before Selling
In sum, filing a pre-sale property tax appeal can help you keep more of your equity, reduce closing-day surprise taxes, and make your home an even more attractive option for buyers who care about monthly costs. Here are your next steps:
Pull last year’s assessment notice and tax bill.
Compare your assessed value with recently sold prices of similar homes in your neighborhood.
Check your county’s appeal deadline and process via their assessor's website.
Decide whether to tackle the appeal yourself or hire a professional like Ownwell (factor in the costs vs. savings).
If you act now, you’ll position your home differently — and smarter — when it hits the market.
If you’re curious about how much you could save or want expert help navigating the appeal process, Ownwell can make it simple. Enter your address today to get started.
