No, you don't have to be a rocket scientist, appraiser, engineering expert, builder, architect, or any other industry expert to be successful. It starts with a visit or call to your local assessment authority. There are literally hundreds or possibly thousands of ways that your assessment can be reduced. In fact, did you know that the government is completely accountable to you if an error exists on your record? Some people go years and years, sometimes 20-plus years, paying too much property tax based on an error on their record. Please do not let this happen to you.
One of the common errors why people end up paying too much property tax is due to a discrepancy in square footage of their home. Since property details form the basis for your assessed value, it is critical that these details be correct. Let's start by giving you an example. As a rule of thumb check, the assessment industry uses 1% as a tax rate to give you a ballpark amount of taxes payable on the specific assessment. Did you know that when it comes to errors, the average adjustment in square footage when it comes to errors can range anywhere from $200-$500 back in your tax account immediately? Let's assume that you owned a bungalow and the size was out by 50 ft.², and this resulted in a drop of $25,000 in assessment. You would multiply the $25,000 x 1 percent to get a reduction of $250 in taxes payable.
Also, the importance of classifying your home into the right type of structure is critical when it comes to making comparisons between your property and others in the neighborhood. Over the years, I've seen many people go to assessment review board hearings and compare their bungalow to a two-story home. Let me elaborate on this a little bit more. The average perimeter size of a two-story home can range from 600 to 800 ft.². The average perimeter size for a bungalow can be 1,000 ft.² to 1,200 ft.². Which home would cost more to construct? It's obvious, the bungalow would, because there would be more cost involved for such components as concrete, cribbing, forms, labor, etc. For this main reason alone you need to compare apples to apples, not apples to oranges. Many times I've seen people make the wrong comparisons in review board hearings and walk out unsuccessful.
Homes are classified according to their structure, and of course, various other components like square footage, quality of finish, existence the basement finish, garages, renovations, and additions. Many other property components come into play when forming the basis for your assessed value. Also, if you live on a hillside, another major factor to consider is the existence of a walkout basement. Many homes take advantage of sloping hillsides when it comes to their construction and design. This can add significant cost to your home, and henceforth, more assessment. Over the years, I've seen hundreds of homes that are assessed for walkout basements when, in fact, they don't have one! Is your home one of these? A small book can be written on the importance of property details and how they affect the assessed value of your property. Remember, if you haven't checked your property details with your local assessment authority, call them now and review them as soon as possible.
Henry Switzer is a regular contributor to www.propertytaxtip.com/ '>www.propertytaxtip.com supplying you with all the information and resources you need to know about your property taxes.
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