• Tweet

• Tweet

With properties at nearly half the value they were just three years ago, now is definitely the best time to buy a home.  However, if you already own your home, there is good news despite the recent drop in housing prices.  It’s estimated that roughly half of homeowners are overpaying on their property taxes.  For many homeowners, this means losing thousands of dollars that could be going towards a mortgage payment or other living expenses.

So how do you know if your taxes are too high?

Well, the first step is to read your notice of assessed valuation.  Generally, this amount is about half of the value of your home.  While many homes have dropped in value – taxes have not kept up with this change, which is why it’s critical to make sure the assessed value isn’t too high.

The assessed value is also called the state equalized value or SEV.  The taxable value is then multiplied by the millage rate for the final taxes value.  If you double the stated SEV, you should get roughly the value of what your home will sell for.  If this is too high, then you should look into appealing the assessment.

If you want to appeal your taxes – don’t wait.  There is a deadline to appeal for the year.  For places like Detroit, residents only have a two week span (between February 1-15) to file an appeal with the Board of Assessors.  Check with your local City Hall to find out the dates and specific appeal process.

The process is relatively simple.  You go to City Hall, follow the time line, and file an appeal.  If it is not granted, then you can always go to the Board of Review (for Detroit it’s in March, but every city has a different time line).

To appeal, you also need evidence that your house is worth less than what they assessed.  You can get comparables of recent sales from your neighborhood from your real estate agent, or even hire a property appraiser which costs around $300.  The Board of Assessors must respond by a certain date as well, so be sure to check the dates.

For more information about appealing your taxes if you live in the Detroit area, check out this article.

(Photo courtesy of Elyce Feliz.)

 Printer Friendly Version