ValueAppeal is a B2C service that helps homeowners to determine if their home is over assessed. If ValueAppeal determines that the home is over assessed, for a fee they will provide the necessary documentation and instructions to appeal the assessment. ValueAppeal appears to be targeting middle to upper income families who own a home. More specifically, the ones they are targeting first are those that put thought, effort and time into managing their personal finances. ValueAppeal has been written about in publications that have readership in the middle to upper income bracket that fit this description – Forbes, Smart Money, Kiplinger, Puget Sound Business Journal, and Real Simple.
Approximately 31 Million homes are owned in the 100K – 500K range in the United States. According to ValueAppeal, 25% of homes in the US are over assessed. This equates to 7.5 million homes that fall into ValueAppeals broader category of potential customers (middle to upper income homeowners). If ValueAppeal captured 5% of this market (gut feeling tells me this is quite optimistic), they would have a customer base which owned 375,000 homes. The average fee for their primary product, the “Property Tax Appeal Evidence Kit”, is $150 so the potential value of this market, assuming they capture 5%, is $56.25 Million.