5 Tips For Dealing With Rising Property Tax Assessments

When the housing market is booming, home values go up, and that means property taxes tend to follow suit. When the housing market crashes, home values plummet and so do property taxes. But when the housing market rebounds, home values start going up again—and property taxes follow suit once again. This constant ebb and flow of real estate prices isn’t something most people expect to happen when they buy a home. However, it’s not something any homeowner can avoid either. Rising property tax assessments are one of the most common side effects of a strengthening housing market. If you’ve just purchased a new home or recently updated some of its features, you might find that your property tax assessment increases as a result.

How Property Taxes Work

First, let’s take a look at how property taxes work. Property taxes are based on the assessed value of your home. That value is determined by a county or local tax assessor, who uses recent and comparable sales of homes in the same neighborhood to estimate the value of your property. The higher the value of your home, the higher your property taxes will be. The money for your local government comes from two sources: state and local taxes. State taxes are mostly based on the value of the property. Local property taxes, on the other hand, are often based on a percentage of the value of the property. In some areas, these two amounts are combined to determine the amount of tax you’ll owe.

Assessing Your Home and Property Tax Liability

To find out if your property tax assessment has gone up, log onto your county’s website and check your property tax assessment. Or you can wait for your annual real estate tax bill, which most counties send out between August and October of each year. It’s also a good idea to check your home’s assessed value at least once every 3 years. This will allow you to catch a tax assessment increase as soon as possible, and you may be able to cut your tax bill. The best month to do this is October. This is because that’s when most counties reassess home values for the next year’s tax bill. You can also see whether your home’s assessed value has gone up by logging into your county’s website.

Tips for Coping with Rising Property Tax Assessments

If you find that your property tax assessment has gone up, there are a few things you can do to lower your tax bill. First, you’ll want to confirm that your appraisal hasn’t changed. If it has, you can appeal the decision. You have a couple of options for doing this, including hiring a professional appraisal company or appealing your tax assessment yourself. Another option is to contact your local government and ask for a reassessment of your home’s value. This isn’t something you can do at any time, though. In most areas, homeowners only have the right to request a reassessment after a significant change has been made to the property. This includes renovations, newly-installed features, or changes in the market.

Strategies You Can Use to Cut Your Tax Bill

One way to lower your property tax bill is by appealing your home’s value. Another option is to improve the assessed value of your home. There are a few different ways you can do this. One strategy is to improve your curb appeal. This will make your property look better and more valuable. Another option is to add new features to your home. This will increase the assessed value of your property. If you add a new deck, patio, or swimming pool, for example, you’ll probably see a tax assessment increase because these additions increase the value of your home. There is one caveat to this, though. If you’re adding a new feature to your home, it should be similar to other features in your area. For example, adding a swimming pool in the desert might not have the desired effect.

Rule of Thumb When Aftting Assessed Value

A general rule of thumb when it comes to assessing value is that if you have one home improvement worth $5,000, you can expect to see your taxes go up about 10% or $500. This doesn’t mean you’ll see a $500 drop in your taxes, though. It’s just a rough estimate. The best way to estimate how much your taxes will go up after a certain upgrade is to search for that item on your county’s website. This will allow you to see how much your tax assessment will increase as a result of the upgrade. For example, if you add a swimming pool to your backyard and search for it, you’ll see that your tax bill will go up somewhere between $1,000 and $1,500.

Change the Way You Look at Rising Assessed Values

If you look at the rising assessed value of your home as a negative, you’ll never be happy about it. Instead of seeing it as a negative side effect of home improvements, try to look at it as an opportunity. The rising assessed value of your home means you have the potential to earn additional money every year. If you want to earn more money from your home, you have a couple of options. First, you can sell your home and purchase a more expensive one. While this may sound like a good idea at first, it’s not a very practical solution. You’ll likely have to pay a lot of capital gains tax when you sell the home again. The second and much better alternative is to simply increase the assessed value of your home. This can be done by adding new features or improving your home’s appeal.

Hold Off On Renovations or Improvements

If your home’s assessed value has just increased, it might make sense to put off any renovations or improvements on the property until your tax bill catches up with the new value. If you add new features to your home or landscape, you’ll likely see your tax assessment go up. By waiting a few years before making improvements to your home, you’ll avoid the extra expense of paying higher taxes for a few years. Instead of making changes to your home as soon as you buy it, wait until your tax bill catches up to the new value of your home. Then, you can make improvements to your home without worrying about a higher tax bill.

Conclusion

When the housing market is booming, home values go up, and that means property taxes tend to follow suit. When the housing market crashes, home values plummet and so do property taxes. But when the housing market rebounds, home values start going up again—and property taxes follow suit once again. This constant ebb and flow of real estate prices isn’t something most people expect to happen when they buy a home. However, it’s not something any homeowner can avoid either. Rising property tax assessments are one of the most common side effects of a strengthening housing market. If you’ve just purchased a new home or recently updated some of its features, you might find that your property tax assessment increases as a result.