TOP 10 Property Tax Tips For HOMEOWNERS

TOP 10 Property Tax Tips For

HOMEOWNERS

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The joy of owning a house is a manifold. Homeownership can be fun but property taxes seem to be a nightmare?

TIP 01

Here are top 10 property tax tips for homeowners!

Homestead exemption is available to anyone.

The requirements are: 1. you must own the house on January 1 and 2. it must be your primary residence.

There are even better exemptions for those over 65 and the disabled.

Veterans who have a 100% disability based on a service-related incident receive a 100% exemption and pay no property taxes for their homestead.

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TIP 02 You do not have to be taxed out of your home of you are over 65 and can’t afford the property taxes. You can defer the property taxes as long as you live in the house, and even longer in special circumstances.

TIP 03 Check the appraisal districts information for your home. Many appraisal districts use aerial photography to “inspect” property.

Appraisal districts are required to inspect properties every three years but in practice they inspect property much less frequently.

This means the appraisal district’s information on your house is likely not accurate.

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TIP 04 Five critical factors to check on the appraisal district’s records for your property are: 1) grade (quality of construction), 2) condition, 3) eective year built, 4) level of remodel and 5) building area.

Appraisal districts tend to double count the atrium area by measuring the perimeter and multiplying by the number of stories. Be extra vigilant regarding the size of your home if you have an atrium.

TIP 05 Appraisal district’s use the cost approach to value for houses.

Professional appraisers generally do not consider this the best method to value houses. It is more prone to error. Appraisal district values for land tend to be low, so they overstate the value of improvements to hit market value. This convoluted valuation model is accurate within 10% of actual value only about half the time.

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TIP 06 Texas law requires you file a protest to get the appraisal district’s evidence regarding your house. You cannot get the sales data that will be considered at a hearing unless you file a protest. At least half the time the appraisal district’s sales data supports a reduction in value.

TIP 07 You can protest your property taxes based on excessive value and unequal appraisal. Excessive value is when the tax value exceeds market value.

Unequal appraisal is when your home is assessed higher for property taxes than similar homes.

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TIP 08 The tax appeal process includes an informal hearing (one-on-one with an appraiser), appraisal review board hearing (panel of three citizens who hear the appeal) and either binding arbitration or litigation.

TIP 09 Most property tax appeals are successful. Most of the appeals result in a reduction at the informal hearing.

In 2015, 69% of appraisal review board appeals (second step after informal hearing) generated lower property taxes for the property owner.

TIP 10 Protest every year

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Ta x R e d u c t i o n E x p e r t s

If you would like to ďŹ nd out if your property is over-assessed, visit the Free Fairness Checker @ www.cutmytaxes.com