Owning a home is expensive because property taxes can be very taxing. The annual property tax bill tends to increase over time. Even if you pay off your mortgage, the taxes still come. Most homeowners don’t realize they need 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, their properties are overvalued.
Here, we provide some tips you can follow to challenge your judgment and save money.
1) Understand the process
Local governments send out assessment notices in the first few months of the year, although the schedule may vary. The notice provides contact details that you need to contact if you do not agree with the assessment. It also provides details related to filing an appeal, and a specific time frame is given in which you can appeal or file a case. The time frame varies in different regions. In some places, it is two weeks; in others, it may be up to six weeks. If you miss this appeals window, you may need 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
Property cards are often included with appraisal notices; however, it can also be accessed online. Alternatively, you can go to city hall and request a copy of the property tax card from your local appraiser’s office. The card contains the information used by the appraiser to determine the appraised value of your home such as the size of the property, number of bedrooms and bathrooms along with their size, garage, etc.
Check if there is any discrepancy in the card as such errors are common. If any of the details are incorrect, please report the matter to the tax assessor. He will make corrections, and a re-evaluation will be carried out.
3) Collect proof of houses in the neighborhood
You can research 5 to 10 homes that are comparable in size and value to your own in the neighborhood. Check the price at which they have been sold. You can also check for comparable home prices on real estate sites and have pictures of homes with prices and sizes. If your home is overvalued, you can build your case and request a review by an appraiser.
4) Do not build or add houses
If you make 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 new bedrooms, decks, patios, swimming pools, or permanent fixtures to your home, your tax burden will increase. You can investigate the new surcharge in terms of pre-construction property taxes from your local building and tax department.
5) Withdraw yourself
You should appeal on your own instead of seeking professional help, as third-party experts such as lawyers, appraisers, and consultants charge up to 50% of the first year deduction. In addition, some appeals boards are sympathetic to homeowners representing themselves.