If you’re looking to lower your property taxes, understanding the system and using online tools effectively can be a huge advantage. Homeowners often miss the chance to challenge property tax assessments, even during economic downturns or when facing unreasonable increases in their property taxes.
Since the financial crisis in 2008, I’ve challenged my property taxes annually. Without a fight, the property assessor’s office might continuously increase the assessed value to maximize their revenue, capitalizing on homeowners who don’t contest these changes. Most renters won’t contribute voluntarily, which unfortunately translates to higher rents, affecting everyone in the community.
Your primary goal should be to convince the assessor that your property value is lower than assessed. It might seem counterintuitive, especially if you’re proud of your home’s value, but remember, a higher assessed value means higher taxes. Similarly, openly boasting about high income can lead to financial disadvantages.
Using online platforms like Zillow, Redfin, or Trulia can be instrumental. Input your address, find the lowest comparable property sales in your area, and use these figures to argue for a lower assessed value. Zillow’s data isn’t always perfect, which can work to your advantage if you highlight the discrepancies and errors that lead to overvaluations.
Be proactive and persistent. The property assessor’s office often uses online data for quick evaluations, hoping homeowners won’t find the time or motivation to challenge their property taxes. Equipped with the right knowledge and data, you can effectively contest unfair tax assessments.
Here’s an example: despite using Zillow’s data to lower my property taxes by an average of $3,600 annually, a nearby sale in 2013 of a remodeled unit skewed my home’s Zestimate, leading to an unwanted increase in the assessed value. I plan to challenge this by arguing the inapplicability of the condo sale to my single-family home’s assessment.
Remember, rising property values, while generally positive, can significantly complicate efforts to lower your taxes. It’s crucial to keep a vigilant eye on how assessments correlate with actual market trends in your neighborhood.
The key takeaway is that you can influence your property taxes. With diligent research and strategic use of available data, homeowners can save significantly. While the system may seem daunting, the potential savings make it worth engaging in the process. If you’re not ready to dive into real estate management but still want to invest, consider exploring options like real estate crowdfunding to diversify your investments without the hassle of direct property management.
