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Property taxes: How to beat 'em

By
Real Estate Agent with Realty Direct

Property taxes: How to beat 'em
Getting overcharged? Appeal your property tax bill the smart way.
By Beth Braverman



You know that your home's value has tanked. So why doesn't the blasted tax man?

Home prices fell 27% from the 2006 peak to the end of 2008, according to the S&P/Case-Shiller Index, while the amount municipalities collected in property taxes rose 12% from 2006 to 2008.

There's a simple fix: Dispute your home's assessment -- and win. Simple, but not always easy. Municipalities are flooded with homeowners seeking tax reductions, and many towns are reluctant to deliver "because they can't find money anywhere else," says Leslie Sellers, president-elect of the Appraisal Institute.

That means your argument has to be airtight. Follow these steps to help the assessor see it your way.

Learn what you're up against
Each municipality's assessor reevaluates properties periodically, usually every one to three years. (Those who do so every five to 10 years often adjust assessments annually based on market factors.)

You can appeal your assessment in any year, as long as you do so within a certain amount of time after you get your tax bill -- typically within 30 to 90 days. Don't get a bill because you pay through mortgage escrow? Call town hall and ask for a copy.

In a few areas, your assessment must be off by a minimum percentage for you to make an appeal (in New Jersey, it's 15%). Call your assessor to see if such a limit applies.

Make like Nancy Drew
First, check the accuracy of your official property record, available online or in the assessor's office. Factual errors aren't uncommon. Prove that, say, your house has three bedrooms rather than four, and your tax can get lowered immediately.

Also gather info on comparable homes using real estate sites like Zillow.com or with the help of a realtor. Look for homes like yours within a mile of your address that sold within two months of the municipality's assessment date (usually Jan. 1) for less than your home's assessed value. (Forget about foreclosure sales -- most towns won't consider them.) If your home is older or smaller than the "comps" you found, adjust the price down; if you recently renovated, adjust up. Collect five solid comps -- more is overkill.

Next, informally discuss your findings with the assessor. He or she is probably inundated by angry homeowners, so stand out by being pleasant. "If you establish a rapport, it will be harder for him to tell you no," says Melinda Blackwell, a property tax attorney in Dallas. Can't get a meeting, or the meeting goes nowhere? Time for a formal appeal.

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Source: CNN Money

Comments (5)

Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Thanks for the great info. We have homes worth thousands less than the tax rolls have them at.

Sep 07, 2009 01:36 AM
Leslie Helm
Tennessee Recreational Properties - Jamestown, TN
Real Estate For Trail Riders

Good information, Brian. Alot of people do not know that they can challenge their property tax bill. You're right; if you marshal a cogent argument and present it pleasantly, you'll get alot farther than just going in to complain that your taxes are too high!

Sep 07, 2009 01:42 AM
Brian Turner
Realty Direct - Washington, DC

Thanks for the responses!  This is good information to share prior to taking a buyer out to look b/c a lot of buyers get discouraged based on property taxes. 

Sep 07, 2009 02:12 AM
Anonymous
Judy Harrington

Hi Brian - that's good information for people. I just recently met with the auditor's office concerning the high taxes on my home and my rental property. In two weeks I received letters on all properties and saved a little over $3000 a year in taxes on all properties. It took some work but well worth it.

Sep 07, 2009 02:12 AM
#4
Brian Turner
Realty Direct - Washington, DC

Thanks for that information Judy!

Sep 07, 2009 02:29 AM