Methods to reduce property taxes
Owning a home is expensive as property taxes can be extremely onerous. Annual property tax bills tend to increase steadily over time. Even if you pay off your mortgage, the taxes keep coming. Most homeowners don’t realize they have to pay less and don’t understand how their taxes are calculated. Most households take their tax assessments at face value, and most of the time, your property is overvalued.
Here are some tips you can follow to challenge your assessment and save money.
1) Understand the process
Local governments send out evaluation notices in the first months of the year, although times may vary. The notice provides the details of the contact to contact if you disagree with the assessment. It also provides the details related to filing an appeal, and provides a specific time frame during which you can challenge or present a case. The time frame varies in different areas. In some places, it is two weeks; in others, it can take up to six weeks. If you miss this appeal window, you may have to wait until next year to protest. Also, check how your property is appraised in your area.
2) Request the property tax card and review it
The property card is often included with the appraisal notice; however, it can also be accessed online. Alternatively, you can go to town hall and request a copy of the property tax card from the local assessor’s office. The card contains information used by the appraiser to determine the appraised value of your home, such as the size of the property, the number of bedrooms and bathrooms along with its dimensions, garage, etc.
Check for card discrepancies as these errors are common. If there are any wrong details, raise the issue with the tax assessor. He / She will make the correction and a reevaluation will take place.
3) Gather evidence of houses in the neighborhood.
You can research 5 to 10 homes that are comparable in size and value to your home in the neighborhood. Check the price at which they have been sold. You can also check the cost of comparable houses on real estate sites and have the photos of the houses with the price and size. If your home has been overvalued, you can build your case and request a review by the appraiser.
4) Do not build or add to the house
If you make any structural changes to your home, there will be an increase in your tax bill. The property tax bill is directly related to the value of your home. If you add a new bedroom, deck, porch, pool, or any permanent fixture to your home, your tax burden will increase. You can research the cost of a new addition in terms of pre-construction property taxes at your local building and tax department.
5) appeal to yourself
You should appeal yourself rather than seek professional help, as expert third parties such as attorneys, appraisers, and consultants charge fees of up to 50% of the first year’s reduction. Additionally, some appellate boards are sympathetic to homeowners who represent themselves.