Homeowners Can Save on Property Taxes with Ownwell's No Upfront Fee Service

Real estate analytics firm CoreLogic recently published a report showing that property taxes on the median single-family home in America have risen by more than 25% since 2019. Simultaneously, Federal Reserve data reveals that the average sales price of those homes rose by more than 33%.

While higher home prices might lead homeowners to believe their property tax increases are justified, property tax assessments are not appraisals meant to reflect actual property value. Debbie Loesel, Senior Tax Manager at Deloitte, explains that tax assessments aim to capture a measure of fair market value at a given point in time, expressed as a mill rate.

Local governments determine mill rates as part of their annual budget process. The rate is set by dividing a city’s or county’s budget shortfall by an estimate of the real property value in the jurisdiction, then dividing that number by 1,000. According to Colton Pace, co-founder of Ownwell, a company specializing in reducing property tax bills, “a mill is one one-thousandth of a dollar, and in property tax terms is equal to $1.00 of tax for each $1,000 of assessment. 15 mills, therefore, is equal to $15 for every $1,000 of assessed value, or 1.5%.”

Loesel points out that the volume of property subject to assessment means that “jurisdictions generally rely on mass appraisal techniques.”

Ownwell’s Pace suggests this is where issues arise, noting that “the value that is put on an assessment notice is an opinion. They’re valuing millions of properties all at the same time. So there’s lots of room for errors.”

To lower their property tax bills, homeowners should first understand the variables involved. Sales comparisons, commonly used by appraisers, assess the value of residential real estate but aren’t always straightforward. For instance, two homes next to each other can vary significantly in value. “You can get a discrepancy in assessments if you have an older home next to a new one,” says Pace.

The next step is to work with a professional. Appealing an assessment should be based on more than just a disagreement with the bill, and hiring a local real estate attorney can be expensive. Firms like Ownwell can help decipher the complexity of an assessment and identify opportunities to reduce a tax bill without an upfront fee. Ownwell is compensated only when it successfully reduces the tax bill, taking a portion of the savings. Its comprehensive evaluations have secured tax reductions for 86% of its clients, with average savings of about $1,150.

In the states where it operates—California, Florida, Georgia, Illinois, New York, Texas, and Washington—Ownwell combines proprietary technology and local expertise to build evidence for tax reductions. The company manages the end-to-end process, including filing paperwork, speaking with local assessors, and attending appeal board hearings. If Ownwell’s analysis identifies any risk of a tax increase, it won’t pursue an appeal. Pace emphasizes the importance of reviewing property taxes annually to ensure accuracy.

Registering on Ownwell’s site takes about three minutes. After entering a property address, homeowners can see potential tax savings and other cost-saving opportunities. “Ownwell’s mission is to make the cost of real estate more clear and equitable,” says Pace.

To find potential exemptions, homeowners can visit their county tax assessment website or get a free estimate at Ownwell.com.