Before moving into a new property, you are likely to look into its exterior and interior aesthetics and whether these components fit your vision. However, what often goes unnoticed is the home’s property tax history. With 25% of Florida first-time homebuyers in 2019, this was a consideration that likely went unnoticed, causing significant financial turmoil down the line. If you still have no clue why this is an essential part of home buying, here is a guide detailing the importance of a home’s tax history.
Benefits of Looking into a Home’s Tax History
The first benefit of a property’s tax history is the information it reveals, most notably the property’s average incremental tax rate over the years and the extent of the change. As is the case with taxes in every state, rates will vary due to aspects such as the prevailing economic conditions. However, significant increases can signal constant assessments, resulting in increased property values that mean huge taxes on your home.
In addition to this, property tax history can also help you determine a property’s value over the years. A steady tax history will, for instance, be evidence that the neighborhood you are moving into comes with promising home values. In contrast, a downward tax history is proof of a declining real estate market.
Appealing for Lower Property Taxes
Property assessments can sometimes come with inaccurate estimates, with high values causing significant property taxes. If your desired property comes with exorbitant tax rates, you have the option to appeal for a lower tax rate. However, going about this will require you to prove that your property’s assessed value falls on the higher side. Based on your preference, you can either submit forms to the required parties or proceed with negotiations with your town tax assessor.
Keep in mind, however, that your assessment value will be based on several factors. These include disability or veteran status where applicable and if you have homestead exemption that looks at your home’s usage. This exemption mainly comes in handy for properties used as primary residences and not for vacation or investment purposes. Other factors that may also work in your favor include the current state laws, limits on taxable value, and lastly, area values.
As you check for your property’s physical attributes, make it a point also to review its property tax history. The last thing you want is substantial taxes that could cause a downward spiral in your income.