You may never stop paying for some improvements

14041766_s.jpgYou’ve saved the money and are ready to pay cash to build a new pool for your
home.  However, that’s just the beginning of your soon to be increased
expenses which will include maintenance, higher utilities and higher taxes.

Homeowners obviously benefit by a larger equity when their home increases in
value due to appreciation.   A not-so-obvious effect that will also more
than likely take place is that their property taxes will increase.  In most
cases, a property’s assessed value is generally tied to market value to
calculate the property taxes based on the tax rate for that year.

Similarly, a homeowner can affect the value of their home by making capital
improvements.  Some small items may never be recognized by the taxing
authority but items that require a permit, certainly are brought to their
attention.  Items such as a fence, roof, remodeling, windows, new rooms or
swimming pools can easily increase the assessed value of a property.

Most states have an established time frame in which to challenge the current
tax assessment for that year.  The process is relatively simple and doesn’t
require professional representation.  It generally involves showing that
there is an error which has overstated the value or that current comparable
sales indicate a lower value.

If you’d like more information or need the comparable sales data, please let
us know.  We would be happy to help you investigate the possibility of
lowering your property taxes.