When shopping for a home, it’s easy to just see the listing price but forget the sum of property taxes that come with it.
A fixed mortgage will keep the monthly prices the same, but taxes can fluctuate.
The taxes fluctuating will impact your mortgage and what you pay monthly.
To find a property’s tax value, the assessed value is multiplied by the local tax rate which is decided on by the local municipality.
Here’s how to appeal the property taxes you pay for your home
You may not agree with the amount you’re told to pay in property taxes, and you have the right to appeal.
If you appeal, you are saying your home is being assessed for a greater value than what it’s really worth.
Check with your local town or city on how to appeal your property taxes. It may be an online form or paper form you mail in.
Some municipalities require that you go to court against the local tax assessor.
If you win, your tax bill will be lowered until the next assessment, which depends on the area. Some places assess annually and others do it every few years.
Sometimes assessors raise the property’s assessment just because they have the power to do it. If you fight them on it, they may not do it in the future.
There are different kinds of assessments that impact your taxes.
Replacement method estimates what it would cost to replace a building. Sales comparison method compares your property to similar properties. Income method looks at what income could be made off of a property. Apartments, commercial estate, and office building are usually assessed with the income method.
By successfully lowering your homes assessed value, you could then be helping to get your neighbors homes to be assessed lower as well.
Lower home value is great for less property taxes, but keep this in mind if you want to sell your home.