How to Save Money on Your Property Taxes

Property taxes are usually unavoidable, but you may be able to lower the amount of tax you pay

Each homeowner's property tax is based on the assessed value of the home. During economic downturns, the real value of homes often declines. In such circumstances, you may seek a reassessment of your home toward the objective of having your property tax lowered. The method for lowering your property tax will vary by location, but a few essential elements of the process will be the same no matter where you reside.

Things You'll Need

• Real estate agent
• Property value assessment

Instructions

1. Take initiative. Don't sit back and expect your local department of taxation to send you a letter saying your next property tax bill will be lower.

2. Educate yourself about the current housing market. Find out how much homes similar to your own are selling for in your town and on your street. Compile records of real estate sale prices to use as evidence to support your claim for lower property tax.

3. Ask your property tax assessor to explain the criteria used to determine the value of your home. If anything seems out of line with the current market, question it. Ensure data pertaining to your home is accurate.

4. Obtain an independent valuation from a real estate agent.

5. Examine available records of sales of similar homes over the most recent six-month period and note the sales prices. The objective is to find homes that although similar to your own have a lower assessed value.

6. Make your appeal. Be prepared for questions you may get from the tax office in relation to your appeal.

Tips & Warnings

• Speak to a reputable realtor for local house value information

• Don't get sucked in to offers from those making promises to lower your property tax. Stick to reputable people in your local area.

References

• Bankrate.com: 6 tips to make a case for property tax cut Read more: Challenge high property tax and win