Unless you've been living in a cave for the last year or so, you won't be surprised to learn that home values in many parts of the country have plummeted. According to some studies, 44 million homes throughout the country will lose over $200 billion in value in the next few years.
While that's hardly good news for the roughly two-thirds of American families who own homes, there may be a silver lining to this scenario. If you're paying property taxes based on inflated market values (assessed at the peak of the housing market), the taxable value of your home may be due for a downward adjustment.
Unfortunately, many local governments throughout the country are also struggling to meet budget shortfalls, so they may raise tax rates at the same time assessed values are moving lower.
Nevertheless, if you live in a declining housing market, you may be able to build a solid case for a reduced property tax assessment. Here are four suggestions.
Get a copy of your tax assessment.
Often these can be obtained via the Internet or directly from your county assessor's office.
Review the assessment for inaccuracies.
Mistakes happen. Does the assessment give your home's square footage as 3,700 when it should be 2,200? Does it list three bathrooms when you only have two? Many factors can impact your assessed value, so look for discrepancies.
Also, be sure to document any of your own square footage measurements. Take photos. Dig out appraisal documents if you've taken out a home equity line of credit or refinanced your home in recent years.
Research comparable homes.
Walk your neighborhood streets and jot down addresses of homes about the same size and age as your house. Then check out their assessed values.
Are your neighbors paying lower property taxes than you are? If so, bring that fact to the attention of your tax assessor.
Build a solid case.
Ranting and raving about high taxes won't help. In discussions with the assessor's office, be polite and fill out all necessary forms. Lay out your photographs, comparables, measurements, and other data in an organized and logical manner.
And if you don't get your taxes lowered the first time around, ask how to file an appeal.
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