Red Letter Mortgage -- Ten Steps to A Lower Property Tax Bill

10 Steps to Lower Your Property Tax Bill

With the government deficits at an all time high- along with property values (at an all time high too), your local tax collector has something to smile about- namely, increasing your property taxes.

One day, you will receive an Assessment Notice from your local Assessor’s office and you will need to know if the increase in value is fair- or way out of line. Here are some tips on how to make sure your property taxes are in line with everyone else in the neighborhood.

1. Look for Errors. In the description of your home, like type of house, incorrect age, square footage, condition or lot size. If you find a mistake, document it with blueprints, surveys photos or inspections reports.

2. Compare Assessed Value. It’s public information and it’s easy to compare your assessed value with similar homes in your area simply by visiting your local property tax assessor’s office. Some counties even have the information posted on the web.

3. Ask a real estate agent. Find out what similar homes
in your area have sold for within the last 6 months and ask for a print out of all the sales. Make sure that the property transfer is considered an “arms-length-transaction”.

4. Visit open houses. Only closed sales matter when deterring value. Visit open houses in your area so you know how they compare to yours.

5. Your purchase agreement. If you recently purchased your home and the property taxes have increased substantially, be sure to take a copy of your purchase agreement to the hearing-along with other recent sales in your neighborhood

6. Take photos of your home. Swallow your pride and take photos of your home’s warts- like foundation cracks, old siding, and sagging deck. Then, take photos of your neighbor’s homes, showing their homes at its BEST.

7. Get a professional appraisal. Especially if you have a property that is unusual or not many homes have sold in your area. If you recently refinanced, some appraisers have the tendency to underestimate your value, so be sure to use that appraisal if you are challenging your assessed value.

8. Check for special exemptions. There are homestead exemptions, mortgage exemptions, senior citizens, veteran, disability and sometimes-even energy-conservation exemptions.

9. Reduce your appeal to writing. List all of the reasons why your taxes should be reduced and why you believe you are entitled to a reduction.

10. Complete the required forms. Use whatever forms or complete whatever paperwork they require for the appeal process. Be sure that you also know the deadline dates. It may also be a good idea to watch someone else make a presentation to the board to get an idea of how it’s done.