As a homeowner, you have an obligation not only to pay your mortgage but also property taxes. Unlike a mortgage payment that stays fairly consistent, property taxes can fluctuate based on the assessment of your property and other changes. If you receive a tax bill for your home that's higher than you think is reasonable, you have the option to fight it. Some homeowners might think that there's no point in fighting their property taxes, but a property tax appeal is beneficial in many ways. Here are three reasons to consider a property tax appeal for your property.
It Can Reduce Your Taxes For Several Years
In most cases, property valuation assessments are only done every few years. That means you'll pay the current rate until the next assessment is completed. If you appeal your property taxes and win, you can reduce your tax liability for your property for the next couple of years or until your area does a new tax assessment. When you live in an area that only does those assessments intermittently, this can save you significantly over the course of several years.
It Can Save Your Neighbors Money
You may not realize it, but when you appeal your property tax bill, you're arguing that the assessment of your neighborhood may be overvalued. If you win your appeal, this provides your neighbors with additional evidence to help them fight their assessments as well. It's easier to win an appeal when there's already a home in your neighborhood receiving an adjustment. That means you could be the trailblazer for your neighborhood if you contest it and win.
You Could Prevent A Future Increase
In some areas, the assessed value of your home is subjective. If you are proactive about fighting for the property tax valuation that's fair for your home, you'll be less likely to fall into that group that your tax assessor raises rates on. When your neighborhood has a reputation for fighting assessments, you're more likely to receive fair valuations because the assessment office wants to avoid the time and cost associated with the court hearings for the appeals.
These are a few of the things that every homeowner should understand about property tax appeals. With the right evidence and legal support, you'll have a better chance of reducing that property tax increase that you just received. Be proactive about defending your home's valuation and tax assessment so that you don't spend needless amounts in excess taxes.
