How contingency-fee appeal firms work, and when they are worth it
They take a share of the first year's saving. That is good value for some properties and poor value for others.
Tax appeal firms typically charge a percentage of the first year's tax saving, often a third to a half, with nothing due if they lose.
Why the model works for them
They file in volume, they know each board, and their marginal cost per case is small. A firm can afford to lose most of a batch.
When it is good value for you
Commercial or industrial property. Large residential where the saving runs into thousands. Any case needing an income approach or an appraisal. Owners with many parcels. And anyone who simply will not do it themselves — a third of something beats all of nothing.
When it is poor value
A straightforward residential uniformity case where the evidence is public records. You are paying a share of a multi-year saving for an evening's work — and note the fee is usually on the first year while the reduction persists for several.
Questions worth asking
- Is the fee on the first year only, or renewing?
- What happens if the assessment is raised?
- Will you see the evidence filed on your behalf?
- Are they filing at the Board of Review, PTAB, or both?
Ask to see the comparables before filing. It is your assessment, and you are the one who has to live with an argument that a neighbour's house is worse than yours.