I’ve been studying the real estate market for the last month, and in that time, I’ve noticed something: Several foreclosed properties have been going to auction—but the amount of jobs in the area hasn’t decreased. So what’s going on? It turns out the answer has to do with homeowner taxes.
Data shows that homeowner taxes, on average, were $3,400 in 2017, which is 3% higher than in 2016. This increase in taxes has caused some real problems for people who purchased a home several years ago. Your property taxes may be higher or lower than $3,400, but the more important thing to focus on is how much they’ve increased since you purchased the home.
One reason property taxes have gone up is that property values are on the rise. That also causes your insurance to increase, so your overall monthly payments may have experienced a spike.
Also, take note of the fact that interest rates have gone up. This has caused many buyers to hold off on buying properties, causing those listed on the market to stay on the market longer. Sellers are having to reduce prices in order to get their homes sold, and, unfortunately, some homeowners who can’t afford to keep up with their payments may face foreclosure.
You might think that because values are dropping that taxes will come down with them, which is partially true. Tax collectors want to collect as much as they can since that money helps pay for libraries, road construction, and other city projects. Taxes are a vital part of life. However, you still don’t want to overpay on your taxes.
Over the course of the next few videos in this series, I’ll discuss how you can appeal your taxes to get them lowered, allowing you some financial breathing room.
If you have any questions or concerns, feel free to reach out to me. I would love to answer your questions and guide you on the right path per your individual situation.