Center Stage with Good Grievance

by 09 Jan 2009
Property taxes can be traced back to ancient times, with the foundation of our current structure being passed through to the original colonies from England. Although, the methods employed by local taxing districts have undergone several changes, they all share the same basic model; the tax base must expand through new taxable units, the property value within the taxing district must continually appreciate or tax ratios for the district must be raised to cover pre budgeted costs of local government services. Due to the dramatic declines in real estate values it has been estimated that as many as 50 million property owners within the United States are already being unfairly over-assessed. Many of these same property owners are just now becoming aware of the fact that they can file a tax grievance with the municipality to challenge the assessed value of their property. ?I called several property tax consultants in my area and chose Good Grievance because of their membership,? said Tara, a homeowner who will save almost $2,000 dollars off her tax bill the first year. ?I had called a bunch of other firms in my area and discovered they all charged 50% of the amount they saved me, that was a $1,000 for just one year?, she stated. ?Good Grievance had me pay a one-time enrollment cost of $399.00, provided a free property appraisal, free tax challenge, free analysis of my homeowners insurance, and will now challenge the assessed value of my property every year for free if the assessed value exceeds the fair market value?. ?We let every property owner know that they can go it alone if they apply the time required to research local market activity, but to achieve the greatest results many homeowners are seeking the services of licensed property tax consultants?, said James Donovan, the Chief Executive Officer. As with any form of government left unattended, the legislative budgets have always outpaced property tax receipts. During the recent real estate cycle, the increased revenue realized through appreciation to home values fueled the growth of local government. The property values have diminished significantly, and continue to decline month to month, with no bottom in sight. What if all the excess created through artificially low interest rates and unregulated lending caused a major long-term negative disruption in property values? What if home foreclosures and outright abandonment left once flourishing neighborhoods littered with dilapidated structures. What if unemployment started a steady upward march to 11%? What if real estate values experienced their most significant decline since the Great Depression? What if all of these factors collided at once? Or have they? Property taxes have traditionally been viewed as a proportional tax. As we continue through the early stages of this current recession, property taxes across the nation will rapidly transition into a ?regressive tax? as commercial property owners incorporate tax certiorari (a legal appeal of a real property tax assessment for the purpose of a lower tax bill) as another portion of their business. Unless changes are made to State tax structures, each successful appeal of commercial property will shift more of the district tax burden to residential homeowners within that particular district. In response to overall decline in district tax revenue, local assessors will have to increase tax rates to compensate for the reduced commercial tax receipts. As the residential rates rise to close budget gaps, the residential property values in that particular district become less valuable due to higher taxes. Inventory and affordability have historically been viewed as the template for real estate value trends. Research clearly establishes that this particular housing cycle is unique and unprecedented. The supply curve shifted outward in the first quarter of 2006, and we have yet to observe a natural stabilization in equilibrium quantity. Although there are many mitigating factors that have caused this extraordinary market condition, an increase in property tax would cause prolonged deterioration. The median housing price as compared to median family income ratio already implies a continued decline to national property values, until eventually establishing a bottom trough during 2011. The solution must be introduced soon to avert a prolonged correction. To counteract the reduced tax receipts due to mass property devaluation, Good Grievance has begun encouraging local officials to apply for federal assistance. Understanding that any direct aid would require a leaner bureaucracy, it would be advisable for local officials to reevaluate in advance of petitioning. The alternative is far worse - a repeating cycle of raising property tax to offset lower property value due to the increase in property tax, and so on. The current property-assessment-model is archaic. ?A momentous opportunity to consolidate the myriad of assessing districts throughout the country can be achieved through the introduction of available technology?, said Thomas Sato, the Vice President of Residential Sales. ?By unifying assessing units at the state level, property owners across the Country could save over 2 Billion Dollars annually?, he continued. ?A shared system would not only protect taxpayer money by eliminating the overlapping costs involved with multiple mass-apportion tax systems?, it would further ensure that resources are used wisely for the benefit of the people?. Good Grievance was formed in 2004 to provide affordable solutions to troubled homeowners. Through the use of integrated proprietary technology, blended with a growing list of professionals we have developed a platform-based centralized property assessment tool. The technology helps keep costs down because it allows the Company to fully leverage the appraised data to generate additional revenue. ?I spoke with Good Grievance and immediately joined due to the exceptional pricing for their services?, said another member. The Company business model provides an independent property valuation model that virtually eliminates appraisal fraud. This unique model will provide real-time property data to homeowners, government agencies, lending institutions and other industries that require consistent and accurate property values. Through our combination of people and technology we have introduced a model that will save both the homeowner and the government tremendous expense related to budget forecast models. Any projected deficit could be recognized and addressed almost 18 months in advance of legislative and voter approval. Additionally, it provides government planners with ample notice and prior opportunity to enact non specific broad based provisional transaction flow tax instead of escalating the property tax burden. Good Grievance envisions a network of homeowners across the nation working together as members to reduce the cost of home ownership. Our primary focus is to address current inequity linked to property tax and hazard insurance markets. Upon achieving certain levels of membership, the Company intends to expand to cooperative purchasing initiatives, which will provide significant savings to property owners, such as heating fuel and electric consumption. The Good Grievance business model is designed to support industry professionals that are currently looking to introduce additional products and services to their past and present clients. We are offering affiliate opportunities for exceptional people that understand the opportunity to offer current and past clients an additional valuable service. The property tax grievance market could grow to an estimated 100 billion dollars. The tax challenge industry is fragmented and local by habit, which positions Good Grievance with no direct competitors. ?In these troubled times-we are hiring?, concludes Thomas Sato If you are currently established as a real estate professional, mortgage professional or certified appraiser and would like to expand your business to include our services, please contact Thomas Sato direct at (866)-966-TAXES, or visit us on the web at www.goodgrievance.com

COMMENTS

Poll

Is TILA-RESPA a good or bad thing long term?