Understanding Property Taxes as a First Time Homebuyer

There's certainly a lot to learn when you embark on the journey of buying your first home, but one thing in particular that we think you should spend time on is property taxes. Though buyers often ask for a rough estimate of what the taxes tend to be on the house each year, to understand property taxes you have to know more than just a number.

With that said, today we'd like to share our knowledge about property taxes with all first time homebuyers - here's what we think you should know:

1. How are property taxes calculated?
Property taxes are calculated using a simple formula: multiply your property's assessment by the tax rates for municipalities, counties, school districts and special districts. 

2. How is a home's assessed value determined?
A home's assessed value is determined by looking at a number of factors, such as neighborhood comps, the home's features, the economy, and nearby infrastructure. Remember that your home's assessed value is important to know as it plays a big role in your property taxes each year.

3. Why do property taxes rise?
Property taxes can rise for several reasons, some of which include an increase in property value in your neighborhood as well as home improvements that you make. Property taxes may also rise if it becomes an economic necessity in your neighborhood, such as if the school district needs additional funding.

4. What can you do about rising property taxes?
Now onto the good news - as a homeowner, you are entitled to file a property tax grievance, which allows your assessment to be reviewed by an assessor to see if you are eligible for a reduction. If they do not offer a reduction, you can file an appeal to have an impartial hearing officer determine if your house has been overvalued for tax purposes.

Have additional questions about property taxes and tax grievances? The team here at P.T.R.C. Inc. would be more than happy to help and provide answers!

To speak with one of our experts, please call (516)/(631) 484-0654 or send an email to info@ptrc.com. You can also find answers to some common FAQs on our website!