The real estate agent assessed the home’s value to have increased by $150,000, resulting in an increase in monthly mortgage payments.
However, she contested the assessment and took three steps to reduce her mortgage.
Real estate agent and content creator Quen Williams (@quenwilliamss) shared the steps she’s taken to combat skyrocketing mortgage costs.
“Governments will try to deceive you if they get the chance, and they tried to do that to me,” she said in a February TikTok video.
Williams explained how the county determined that the home’s value had increased by $150,000 a year after she moved into it.
Rising property values lead to higher mortgage payments due to higher taxes.
The real estate agent refused to believe the valuation and protested, asking for the tax assessment to be reduced.
Three steps
The real estate agent shared three steps homeowners can take to dispute their property tax assessment.
She said that every year she helps her family and friends win their protests, and every protest she has attended has been won.
- Tax Assessment
The first step, Williams says, is to check your assessment notice and make sure the information on it is correct.
This includes the name, address, parcel description and tax exemptions.
2. evidence
The next step is to gather evidence. There are two types of evidence: evaluation and comparison.
Williams noted that if you purchased your home within the past year, you should have an appraisal that is “more than enough proof” to submit to the county.
If you don’t have an appraisal, you can use comparables as evidence. Comparables are properties that are comparable to your home that are used to gauge the value of your home.
Williams noted that homeowners can ask a real estate agent to find them or they can look for them themselves.
She suggested using Realtor.com instead of Zillow because Zillow’s estimates aren’t always accurate.
Homeowners must find five comparable properties to challenge their property tax assessment, and all five must be homes that have been sold within the last 90 days or within the past year.
Property Tax Assessment
The Treasury Department assesses homes annually as one of the steps in calculating a homeowner’s property tax liability.
Property tax assessments are conducted by government assessors who calculate property taxes based on the assessment results.
Several factors can affect your tax assessment, including market conditions, renovations, property characteristics, local tax rates and economic factors.
Rising property values lead to a sharp increase in mortgage payments due to higher taxes.
If a homeowner believes their property tax assessment is inaccurate, they can appeal it through their local government.
Williams shared five things to consider when searching for each competition:
- Location – The house needs to be in a neighborhood.
- Year Built – The home must have been built within five years of yours.
- Square Footage – The square footage of the home should be within 20% of the square footage of your home.
- Bedrooms and bathrooms – should be within a door or two of the house.
- Features – The home should have similar features to yours, such as solar panels or a swimming pool.
3. Check Price
Williams noted that finding five comparable properties would provide most of the information needed to challenge a tax assessment.
The final step is to use comparables to determine the final price for your home.
“It’s just playing a little game of adjusting the price to see what your home would be worth based on those homes,” Williams said.
In related news, a real estate agent has shared his experience with the “golden handcuffs” effect, and said homeowners don’t need to feel trapped.
Additionally, one homeowner was unhappy that her mortgage payment had jumped by $1,200, which may not seem like a “big deal,” but it left her feeling trapped in her home.
