In
25 Ways to Waste Money
, we show you several spending holes that may be in your budget and
how to plug them. Here's one more waste of money to add to the
list: paying too much in property taxes.
As many as 60% of properties in the U.S. are assessed higher
than their current value, according to the National Taxpayers
Union. That's because local governments assess properties, on
average, once every two to three years. As we've seen, home values
can fall a lot over that period of time. So if your property's
value hasn't been assessed since it tumbled, you're probably paying
too much in taxes.
You don't have to keep throwing money away, though. You can
appeal your property tax assessment, and there are Web sites that
can help. These three sites find comparable properties in your area
that have sold for less than the amount at which your property is
valued and provide varying levels of help with the appeals
process.
ValueAppeal.com
. For $99, you'll find out whether you're paying too much and how
much you could save by appealing. You get a property valuation
based on the same data your county uses for its assessments, a list
of ten comparable properties, a customized appeal report to mail to
your appeals board and access to a tool that analyzes the property
assessor's comparable properties to demonstrate that they unfairly
support a higher value for your home. You'll get your money back if
your appeal is rejected. Although ValueAppeal.com recently expanded
its service nationwide, there are some rural areas that are not
covered.
EasyTaxFix.com
. For $79.95, you get three comparable properties (with the option
to select other ones if you think they better reflect your
property's value), a completed appeal form, valuation document and
instructions on how to proceed. You'll get your money back if you
don't win your appeal. However, the site covers only New Jersey and
select cities or counties in Florida, California and New York. But
it will be expanding coverage in Florida, California and New York
this year, says EasyTaxFix.com President Adam Berkson.
LowerMyAssessment.com
. You can see your property's assessed value and market value for
free. For $39.95, the basic package provides comparable sales data.
This package is available to property owners in all 50 states (but
data aren't available for some rural areas). For $79.95, the deluxe
package includes completed appeals forms in addition to sales data
(it's only available in 11 states). For $299.95, the premier
package includes an appraisal by a licensed appraiser, along with
appeals forms and comparable properties.
According to the April issue of
Kiplinger's Personal Finance
magazine, hiring a professional real estate appraiser who will take
a thorough look at your property provides the strongest evidence of
its worth. But check whether your community allows outside
appraisals in an appeal before you get one. You can find certified
appraisers through the
Appraisal Institute
or the
National Association
of Independent Fee Appraisers
.
The April issue also cautions against using law firms or other
services that offer to assist you with an appeal in return for a
high percentage of any savings on your bill. Most often,
residential homeowners can go through the process on their own. You
can get more information about appealing your property tax bill in
the April issue of
Kiplinger's Personal Finance
, which will be available on newsstands and online March 15. For
$9.95, you can buy the National Taxpayers Union's guide
How to Fight Property Taxes
.
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