Are Your Property Taxes Accurate?

This evolving real estate market has a lot of people wondering what homes’ values REALLY are, and if the value that taxes are based on is fair anymore.  A lot of recent homebuyers are turning to property tax appeals in order to get their bills more in line with today’s prices. My advice is not to let yourself be intimidated by bureaucracy. If you think you might be overpaying in taxes, you may be right. The National Taxpayer’s Union reports that as many as 60 percent of homes may be overvalued by tax assessors.

The first thing you should do is to find out how the appeals process works in your state. A quick web search for your state + “property tax appeals” should bring up instructions from your state government. (For example, Texas are at https://www.poconnor.com/property_tax_exemptions.asp)

The next step is to read your tax bill carefully and review the survey map and property description you received when you bought your home. If you’ve just purchased a home, the most obvious discrepancy to look for is how the value on the bill compares to what you just paid. It’s also worth making sure there aren’t any glaring errors, like more acreage than you actually own or an extra story when you really just have vaulted ceilings. Property tax assessments can happen without the town’s assessor ever setting foot inside, so you can’t assume they always know better than you do. It’s also useful to take a close look at the houses like yours in the neighborhood. If homes like your own have lower taxes, it’s definitely worth looking into.

After that, consider your timing. If you bought a fixer-upper, you’ll want to get re-assessed BEFORE you get the house looking its very best. The depreciated value of the house is much easier to sell if it’s not completely refurbished.

The timing is also important if you own an income property and market conditions have forced you to reduce your rent. If the rent is less, then so is the value of your rental property.

I encourage you to thoroughly explore all of your options before you just accept high taxes on your property. Your bank accounts will most certainly thank you.”