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Why Partnering with a Property Tax Consultant Can Save You Time & Money in 2025
For commercial property owners, property taxes are often one of the largest recurring expenses. In Texas—where valuations continue to rise amid booming markets—these costs can quickly spiral out of control if left unchecked. While many owners believe they can handle property tax assessments and appeals themselves, the reality is that inaccurate valuations, missed opportunities, and unoptimized appeals could cost thousands, or even millions, in unnecessary taxes.
By partnering with a professional property tax consultant, you can save time, reduce stress, and ensure your assets are assessed fairly and accurately—all while protecting your bottom line.
The Cost of Overpaying: What’s at Stake?
Texas’s growing commercial real estate market has driven property values—and property taxes—to record levels. Yet, appraisal districts rely on mass appraisal methods that often fail to reflect a property’s unique challenges and real-world performance.
- Even a small error adds up: For a property assessed $1M higher than its actual market value, the owner could pay an extra $25,000 to $30,000 annually in taxes depending on local rates. Over 5 years, that’s more than $150,000 lost.
- Time is money: Managing the appeal process on your own requires weeks of gathering documents, attending meetings, and negotiating—time that takes you away from running your business.
Case Example: A multi-family property owner in Austin experienced a 15% valuation increase due to mass appraisals, despite rising vacancy rates and rent concessions. By partnering with a property tax consultant, the owner secured a 20% reduction, saving over $80,000 annually.
5 Reasons Why Property Tax Consultants Deliver Results
1. Expertise You Can Rely On
Property tax consultants are specialists. They bring an in-depth understanding of local market dynamics, property valuation methods, and the complex appeal process in Texas.
- What This Means for You: Consultants know how appraisal districts operate and how to challenge their assumptions effectively. They have access to the latest market data—sales comparables, rent trends, cap rates, and vacancy data—that build a solid case for appeal.
Pro Insight: A warehouse owner in Houston successfully reduced their tax bill by 25% after consultants provided evidence of tenant turnover, deferred maintenance, and local market oversaturation—factors overlooked by the district’s mass appraisal.
2. Data-Driven Valuation Analysis
Appeals are won on evidence—not opinions. Property tax consultants leverage data-driven strategies to present a compelling case:
- Income Approach: Evaluating rent rolls, occupancy rates, and NOI to demonstrate actual financial performance.
- Sales Comparables: Comparing recent sales of similar properties and adjusting for condition, age, and location.
- Cost Adjustments: Factoring in deferred maintenance, obsolescence, or necessary capital improvements that reduce market value.
What This Means for You: Your property is assessed based on its real market value, not blanket district assumptions.
3. End-to-End Appeal Management
Navigating the property tax appeal process can be overwhelming, with multiple steps and strict deadlines. A property tax consultant handles every aspect, including:
- Reviewing valuation notices and identifying appeal opportunities.
- Preparing and filing appeals before deadlines.
- Negotiating with appraisal district representatives.
- Representing you before the Appraisal Review Board (ARB) if needed.
What This Means for You: You avoid the stress, save valuable time, and get expert representation to secure the best possible outcome.
Pro Insight: A retail center owner in Dallas avoided a rushed appeal by engaging a consultant early in the year. The consultant identified inaccurate comparables and negotiated a significant reduction during informal talks, avoiding a lengthy formal ARB process.
4. Proactive Tax Planning and Forecasting
Property tax consultants don’t just focus on the current year—they help you plan for the future. Accurate tax forecasting and proactive management are essential for budgeting, financial planning, and maintaining NOI.
- Future-Proof Your Strategy: Consultants identify how market trends, phased developments, or property improvements will impact your tax liabilities over time.
- Phased Development Benefits: For developers and entitlement property owners, tax planning ensures valuations align with each stage of progress—not inflated assumptions about the “final product.”
Example: A developer in San Antonio with a 200-acre entitlement project used tax forecasting to minimize liabilities during the pre-development phase, freeing up capital for infrastructure improvements.
5. Maximize ROI and Enhance Property Performance
Reducing your property tax burden has a direct and measurable impact on cash flow, NOI, and overall property performance.
- Immediate Savings: Lower tax bills increase your bottom line immediately, improving cash flow.
- Higher Property Value: For income-based assets, improved NOI enhances market value and investor returns.
- Increased Competitive Edge: Savings can be reinvested in property upgrades, tenant incentives, or operational improvements, helping you attract and retain quality tenants.
Why DIY Appeals Fall Short
Many commercial property owners attempt to handle appeals themselves, but they often lack the time, resources, and expertise to maximize results. Common pitfalls include:
- Using outdated or incomplete financial data.
- Failing to challenge incorrect comparables or market assumptions.
- Missing critical deadlines or under-preparing for ARB hearings.
While DIY efforts might yield small reductions, owners often leave significant savings on the table.
Case Example: A hotel owner in Fort Worth attempted a DIY appeal, securing a modest 5% reduction. After partnering with consultants the following year, they achieved a 20% valuation reduction, saving $150,000 annually.
Why Choose FirstPointe Advisors?
At FirstPointe Advisors, we specialize in helping Texas commercial property owners reduce their property tax burdens with proven, data-driven strategies. Our team combines deep local market knowledge with years of experience navigating the Texas property tax system to deliver real results.
Here’s what we offer:
- Comprehensive Property Tax Reviews: Identifying opportunities to challenge inflated valuations.
- Data-Backed Appeal Preparation: Leveraging NOI, market trends, and property-specific insights to build your strongest case.
- End-to-End Appeal Management: Handling everything from filings to negotiations and ARB representation.
- Long-Term Tax Planning: Proactive strategies to forecast future liabilities and optimize your tax position year after year.
Don’t Let Rising Property Taxes Hurt Your Bottom Line
Rising valuations in 2024 don’t have to mean higher tax bills. By partnering with property tax experts, you can ensure your property is assessed fairly, protect your NOI, and save significant time and money.
Contact FirstPointe Advisors today for a complimentary property tax review and let us help you plan ahead for success.
James “Garrett” Cope
Senior Manager, Property Tax
FirstPointe Advisors, LLC
3201 Dallas Pkwy., Suite 200
Frisco, TX 75034
Main: 214.253.0056
info@first-pointe.com
