Methods to reduce property taxes
Owning a home is expensive as property taxes can be extremely burdensome. Annual property tax bills tend to steadily increase 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 more often than not, your property is overvalued.
Here, we provide some tips you can follow to challenge your assessment and save money.
1) Understand the process
The town halls send liquidation notices in the first months of the year, although the hours may vary. The notice provides contact details to contact if you disagree with the assessment. It also provides the details related to filing an appeal and provides a specific time period during which you can challenge or file a case. The time frame varies in different areas. In some places, it’s two weeks; in others, it can be up to six weeks. If you lose this appeal window, you may have to wait until next year to protest. Also, check how your property is valued in your area.
2) Request a property tax card and review it
The property card is often included with the appraisal notice; however, this can also be accessed online. Alternatively, you can go to the 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, the garage, etc.
Check for card mismatches, as these errors are common. If any details are incorrect, raise the issue with the tax adviser. He/She will make the correction and a reassessment will take place.
3) Gather evidence of houses in the neighborhood
You can research 5-10 houses that are comparable in size and value to your house 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 structural changes to your home, there will be an increase in your tax bill. Your 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 property tax terms prior to construction at your local building and tax department.
5) Appeal to yourself
You should appeal yourself rather than seek professional help, as outside experts such as attorneys, appraisers, and consultants charge fees of up to 50% of the first year’s reduction. Also, some appeals boards are sympathetic to self-represented homeowners.