Lower Your Property Tax

Whether you live in Orange County, California, Broward County, Florida, or Detroit Michigan, there is an opportunity nationwide for homeowners to reduce their expenses by making an effort to lower your property taxes. might be facing exorbitant hikes in property taxes. In one of the more extreme cases, residents of West New York, N.J., are fighting a planned 27% bump in their property tax rates.

What gives? Squeezed by foreclosures and falling revenues, many local governments are facing unprecedented budget shortfalls. To fill some of the gap, more municipalities will have to raise property taxes, says Sharon McCabe, associate director of the Graaskamp Center for Real Estate at the University of Wisconsin. While homeowners would have a hard time fighting the local government on such increases (although West New York residents are certainly trying to), there are ways to reduce the impact of the hit. Like most homeowners, your property’s value has most likely fallen off a cliff over the past year. If your assessment is based on a higher valuation from several years ago, it’s probably time to get it reassessed, says Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA. The end result could save you hundreds of dollars a year. However, this move isn’t right for everyone.

If you decide to hire a lawyer or property tax consultant to help you, for example, you could lose much of the savings you’d otherwise reap to their fees. Here are a few things to consider before seeking a reassessment:

Your Town’s Methodology

While some municipalities revalue properties annually, others do so every five years, says McCabe. There’s also wide variation in how towns assess properties. Homeowners should visit their assessor’s office or check their web site for information about when assessments can be done, what period they cover, and how and when homeowners can appeal those decisions.

You Can Do It Yourself

You may get mailed solicitations from realtors or attorneys offering to help lower your property taxes by filing for a reassessment. But most homeowners can manage the appeal process on their own, says Tara-Nicholle Nelson, a real estate broker. Lawyers and consultants typically charge a percentage of your first year’s tax reduction sometimes as much as 50%.

Check for Errors

Mistakes on property assessment records often mean homeowners are taxed at higher rates than they should be. The record might say, for instance, that your lot is one acre when it’s three-quarters of an acre, or your house has four bathrooms when it has three.

Check Out Similar Home Sales

Towns typically make assessments based on market value. But sometimes those figures aren’t very realistic. If you don’t think you can sell your home at the value your town pegs, find out what comparable homes in your area have been selling for, says McCabe.

Read original article written by Lisa Scherzer  

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