What Is Unequal Appraisal
Unequal appraisal occurs when your property is assessed at a higher percentage of market value than comparable properties in the same jurisdiction. If your home is appraised at 45% of its market value while similar homes sell for 40% of their market values, you have a basis for an unequal appraisal protest.
This is distinct from arguing the appraised value itself is wrong. You're proving the assessor applied inconsistent standards across the neighborhood or class of properties. Many states require uniform assessment ratios within assessment classes. In Texas, for example, the standard assessment ratio is 100% of market value, but properties are often appraised below that rate. If your property is assessed at 95% while neighbors pay 85%, that disparity is actionable.
How Assessment Ratios Prove Unequal Appraisal
Your assessment ratio is calculated as: (Assessed Value / Market Value) × 100. To build an unequal appraisal case, you need comparable sales data showing what similar properties actually sold for, then compare those sales to the assessed values the assessor assigned.
For example, if three homes sold on your street in the past 18 months for $350,000 to $365,000, and they were assessed at $315,000 to $318,000 (a 90% ratio), but your identical home was assessed at $330,000 (a 94% ratio), the ratio difference is your evidence.
Most jurisdictions accept sales within the past 12 to 24 months as valid comparables. The properties should be in the same neighborhood, similar in age, square footage, lot size, and condition. Sales that occurred during unusual market conditions or between related parties typically don't count.
Filing an Unequal Appraisal Protest
- Gather comparable sales: Obtain public records of 3 to 5 similar properties that sold recently. Include the sale price, sale date, assessed value at time of sale, and assessment ratio. Tax assessor websites and county recorder offices provide this data free.
- Calculate assessment ratios: Divide each comparable's assessed value by its sale price. Compare these ratios to your own. Document the discrepancy clearly.
- File your appeal: Submit your protest before the deadline, typically 30 to 45 days after assessment notice. Include photographs, the comparable sales analysis, and a cover letter explaining the ratio disparity.
- Prepare for board of review hearing: Many jurisdictions require or allow an informal hearing before the board of review. Bring your documentation, be prepared to discuss why the comparables are truly comparable, and explain the assessment ratio gap.
What Appraisal Method Matters
Assessors use three appraisal methods: market approach (comparable sales), cost approach (replacement cost minus depreciation), and income approach (for rental properties). Your unequal appraisal argument challenges how uniformly the assessor applied whichever method they chose. If the assessor used the market approach but didn't adjust properly for condition or location differences across similar properties, that's actionable inequality.
Some assessors use mass appraisal models or computer-assisted valuation systems that can systematically undervalue or overvalue certain neighborhoods. If you can show the assessor's model produced higher ratios for comparable properties than yours, you've documented systemic inequality.
Exemptions and Assessment Classes
Agricultural properties, owner-occupied residential homes, and business property may fall into different assessment classes with different ratio standards. An unequal appraisal claim only works within the same assessment class. You cannot compare your residential home's ratio to a commercial building's ratio, even if they're on the same block.
If your property qualifies for an exemption, that's separate from an unequal appraisal protest, but both can be pursued simultaneously if applicable.
Common Questions
- How many comparables do I need? Most boards of review expect at least three recent sales of substantially similar properties. More than five comparables strengthens your case, but quality matters more than quantity. One strong comparable with minimal differences beats five weak ones.
- What if my property is unique? Unique properties are harder to protest on unequal appraisal grounds because finding true comparables becomes difficult. If your home has unusual features, special permits, or sits on an unusually large lot, focus on getting the closest comparables you can find and note all differences in your submission.
- Can I appeal if the assessor says the market has changed? Yes. If your property was assessed before recent sales in your area, market appreciation doesn't excuse unequal ratios. The comparable sales show what the market is paying now. The assessor's prior estimate, however reasonable it seemed at the time, is no longer the standard.