Homeownership can be one of the most significant achievements in life. It’s a dream for many people and achieving it is a great milestone. However, paying property taxes is part of it.
Homeowners and buyers are generally aware of the property tax rates in their specific locations. If not, that is one thing that a buyer should research before making a purchase. You may know about property taxes, but you might not understand what can drive up your property taxes. Let’s look at some of the factors that can drive up property taxes:
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Home improvements
Renovating a kitchen or bathroom revitalizes a home and adds to its worth. It’s also one of the most common reasons why your property taxes may rise. It’s argued that improving your home adds value to it and its worth goes up automatically, and so do the property taxes. Before making that significant improvement, calculate how much it is likely going to cost you in higher taxes and how much value the renovation will add to your home and see if you can afford higher taxes.
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Increase in home sales around your area
More sales in the neighborhood may cause your property tax bill to rise. The more homes sell around your house, the higher the taxes. More sales, according to evaluators, generally means an increase in the value of properties in the area. The assumption being that the area is more desirable to people and so are the properties. Nearby home construction increases your home’s value too. The value of homes is assessed by counties every few years, but some states re-assess annually.
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Local and state budget decisions
The property taxes charged on your property are used to fund the state and local governments. If the local and state government decides to fund a public service subsidized by property taxes, that is reflected directly in your taxes. It doesn’t matter if you use the services or not. As long as you reside in that area, you are subject to the tax increase.
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Building new schools
Building a school is great for the teachers, students, parents and the community in general. This, however, comes with a price tag that can cause higher property taxes. The community and county may help pay for school projects and property taxes are sometimes raised.
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New Facility in the neighborhood
If the local or state government decides to build a public facility like a park, a public swimming pool, golf courses, lake or other amenities, your property taxes may go up. The cost is spread out among the residents. The value of homes may also go up with the new added facility making the neighborhood a nicer place to live.
In a bid to lower your property tax rates, ensure the property records reflect the layout of your property accurately. If the records say you have more bedrooms and bathrooms than you really do, you may be overpaying your property taxes.
Published on 2018-08-17 17:59:56
