Time to Challenge Your Property Assessment and Lower Your Taxes

| November 19, 2011 | Comments (0)

Appeal your property assessment, reduce your property tax

Over the last few years since the Great Recession of 2008, property values have fallen like a proverbial stone.

Home values have seen falls of up to 50%, depending on the part of the country the homeowner lives in.

Something strange has happened in the meantime – your property taxes have continued to rise.

Yes, you are justified in wondering why your property taxes should rise even as the value of your property falls.

The reason in most cases is that most townships don’t assess property values every year. In fact, due to the cost (and strategy) , many assess only every 4-8 years.

Since townships know that home values have plummetted, many have pushed back township assessments, not wanting to lose revenue.

This is where your appeal comes in. If, after checking your home value online on sites like Zillow, Real Estate ABC and Eppraisal, you find that your home value has declined significantly, it is time to file an appeal.

The first thing you need to do is check the procedure in your township, including all the documentation required and any deadlines. There are typically narrow windows of time available after you receive your property bill for the year.

Many townships require a formal appraisal, not just a website estimate in order to be successful in an appeal. Go ahead and order one if you feel you have a strong case where you will save much more than the value of the appraisal, which can cost up to $500.

After you receive this, file the forms. You may need to be present for a hearing, or simply have a phone conversation, or just have the procedure done entirely by the township office.

If you succeed, you’ll receive a letter stating your new property tax, together with a new bill.

Good luck in challenging your assessment and reducing your property tax.

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Category: Mortgages, Personal Finance