ValueAppeal, which allows home owners to easily submit a property tax appeal, has raised $1.2 million in an oversubscribed round of funding that the company will use, in part, to roll out a new service called ValueAppeal Pro. That offering allows accountants, real estate professionals, home inspectors and others to offer the tax appeal service directly to their clients.
The funding follows a $1.6 million round that ValueAppeal raised last summer. Total funding now stands at just over $4 million. Since the previous round, the company has been undergoing a growth spurt, opening a new office in Seattle’s South Lake Union neighborhood. It now employs 40 people, up from 15 last year.
ValueAppeal charges a one-time $99 flat fee for its do-it-yourself tax appeal kit, which counters the more expensive offerings from attorneys and tax consultants who typically charge homeowners 50 percent of their savings. The company — which offers a 100 percent money-back guarantee — estimates that about 20 to 25 percent of properties in the U.S. are overassessed.
Last year, ValueAppeal saved customers on average $1,346 on property taxes, boasting a success rate of more than 80 percent. That’s double the success rate for those who challenge property taxes on their own.
With the new Pro service, ValueAppeal is expanding its base of sellers, allowing professionals to use the tool to run multiple tax appeal reports on properties.
“If a professional wants to quickly identify all the homes within thirty miles of their office that are overassessed and could save at least $3,000 on their property taxes, we can deliver this,” said ValueAppeal CEO Charlie Walsh.
Given ValueAppeal’s niche in the consumer space and recent expansion into the professional market, I wouldn’t be surprised if Zillow took an interest in the company. I’ve not heard anything official on that front, but Zillow has gotten quite acquisitive lately, and ValueAppeal’s latest offering seems to be right in its sweet spot of tools for real estate professionals.