How can I Avoid Home Remodelingโ€™s Ugly Surprise: Higher Property Taxes?

To avoid a higher property tax bill after a home remodel, homeowners can take the following steps:

Check local property tax laws: Before beginning any remodeling work, homeowners should research their local property tax lawsto understand how renovations may impact their property taxes. This information can be obtained from the local property tax assessor's office.

Get a pre-remodel appraisal: A pre-remodel appraisal can provide an estimate of the home's value before renovations, which can be useful in determining the potential impact of the renovations on the property's assessed value and property taxes.

Consider the type and cost of renovations: Some renovations, such as adding living space or making energy-efficient upgrades, may result in a higher property tax bill, while others may not. It's important to carefully consider the type and cost of renovationsto determine their potential impact on property taxes.

Take advantage of tax credits and exemptions: Many states offer tax credits and exemptions for energy-efficient upgrades or home improvements, which can help offset any increase in property taxes. Homeowners should research these benefits to determine if they are eligible.

Keep accurate records: Homeowners should keep detailed records of the cost and type of renovations, as this information may be useful in the event of a property tax appeal.

Consider a phased approach: Homeowners who are concerned about the impact of renovations on their property taxes may choose to complete the work in phases, which can help to limit the increase in property taxes.

Consult with a professional: Homeowners who are unsure about the impact of renovations on their property taxes should consult with a tax professional or real estate agent, who can provide valuable advice and help ensure that they make informed decisions.

 

By taking these steps, homeowners can help minimize the impact of renovations on their property taxes and avoid any unpleasant surprises. It's important to keep in mind that property tax laws and exemptions vary by state, so it's always recommended to check with your local property tax assessor's office for specific information and guidelines.

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