8 Smart Ways to Reduce Your Property Taxes?

8 Smart Ways to Reduce Your Property Taxes

With the increase of property cost constantly going up, this, in turn, causes property taxes to go up too. Increasing property taxes puts a big dent into your pockets and profits as an investor. Finding ways to lower your property taxes has been a must so you can stay ahead. But don't worry—there are several proactive steps you can take to potentially lower those bills. Here are eight strategies that might help you keep a little more money in your pocket:

Review Your Property Tax Card

Ever wonder what the city thinks about your home? Go to your local assessor’s office, grab your property tax card, and see what they’ve written down. Find a mistake? Politely point it out. Correcting an error here can be like finding a 20-dollar bill in your laundry—satisfying and unexpectedly profitable. Corrections can lead to lower assessments.

Hold Off on Building New Structures

Adding a fancy new deck or a sparkling pool sounds great until you realize it could hike up your tax bill. It's like eating cake in your diet; enjoy now, regret later. While adding a new deck or a pool might enhance your lifestyle, these improvements will likely increase your property’s assessed value and, thus, your taxes. Before you build, weigh the potential tax increase against the enjoyment or utility of the new addition.

Manage Your Curb Appeal

Assessors are subjective in their evaluations. A home that looks particularly appealing can end up with a higher assessed value. Keep things nice but not too nice; think comfortably on the middle road. You want your home to look good, just not "best on the block" good, unless you’re aiming for a higher tax bill. If you know the assessor is scheduled to visit, you might want to hold off on exterior enhancements until after their assessment.

Compare Your Home With Similar Ones

Ever peek over the fence and wonder if you’re paying more taxes than Mr. and Mrs. Jones next door? Gather some intel on their property values. If theirs are lower despite similar charms, you might just have a case for a tax reduction. It’s not nosy if it saves you money; it's resourceful! Sometimes, errors in assessment can be spotted by comparing your home to similar ones in your neighborhood. If your home is assessed higher than a comparable one, this could be a mistake. Gathering evidence from neighboring properties can support a case for lowering your assessment.

Let the Assessor In

If the assessor hasn't seen the inside of your home, they might imagine it’s lined with gold. Let them in—it’s the perfect chance to show off your less-than-golden quirks that should lower your valuation. It might seem counterintuitive, but letting the assessor into your home can prevent them from assuming the existence of upgrades or luxury finishes that aren't there. If you've kept your home's interior modest, a walkthrough could lead to a fairer, often lower, assessment.

Guide the Assessor During Their Visit

Don't just let the assessor wander; accompany them and point out things that might detract from the property’s value—like that old plumbing or the crack in the foundation. This ensures they see the full picture, not just the shiny new updates.

Investigate Tax Exemptions

Many localities offer tax exemptions for seniors, veterans, people with disabilities, or certain types of agricultural properties. Check with your local tax office to see if you qualify for any exemptions and how to apply for them.

Consider an Appeal

If your tax assessment seems off, consider appealing it. This process might require a small fee or the help of a lawyer, but if successful, it can significantly reduce your tax bill. Make sure you’re prepared with ample documentation and photographs to support your claim.

Being proactive and informed can lead to significant savings on your property taxes. Don't assume your tax bill is set in stone; a little effort could uncover savings that make a big difference in your annual expenses. By understanding and utilizing these strategies, you can better manage your property taxes and potentially save a significant amount each year.

Contact us at chooselovesolutions.com for more information on how we can assist you in lowering your property taxes.