Property Tax Assessments: Is There A Way To Save Money?
Property taxes are often viewed as a necessary evil. Most of us do not like to pay them, however, we are aware that without these taxes our local government, security services and schools could not function properly or would not function at all.
Property taxes are based on the value of your home multiplied by the current tax rate. When you make improvements or additions to your home, your local government may reassess the value of your home and increase your property tax liability accordingly. Likewise, with many property values falling across the country, homeowners have the right to request a property value review called a reassessment. This reassessment can be done by a private company or by your local government. Often, requesting this service from your local government will cost less or even at no cost.
Due to the recession and weak real estate market, many of us are receiving automatic reassessments from our local municipality. Some may have thought that this would result in reduced property taxes for the year. It is not the case for most of us. For the city or county to function, they need income from our households. Therefore, most adjusted the rate to compensate for the decline in property value. I encourage all of you to research this to understand what your financial obligation is.
Before you begin, take a look at your current tax assessment. Check measurements, square footage, and any description of number of rooms or whether or not a foundation is finished, etc. Make a list of any errors. You should also take a look at your neighbors’ property values. These can often be found online at your county auditor’s website. You can also get a quick idea of these values by visiting sites like Zillow or Trulia and searching for homes in your area. If their values are much lower than yours, that’s a good place to start in appealing your own property tax liability.
When considering requesting a property value reassessment, it’s a good idea to consult a real estate attorney who can help you decide if this is a good choice. A real estate attorney may have already worked on a similar case and have the knowledge and experience to tell you if the end result might be worth it.
A real estate attorney can also help you make sure there are no miscalculations in your current property tax rate and should also be familiar with the property tax appeal process in your area. Working with an attorney who specializes in real estate, such as Felix Nihamin and Associates, can prevent you from making costly mistakes when considering appealing for lower property taxes.