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The amount due on a property tax bill is obviously the main thing that catches a homeowner’s eye”but there are other parts of the bill that should be checked for errors and confirmed as updated.

Here are some ways to review your property tax bill and how to appeal it:

Check the Numbers
Look at the rate of taxation and assessed value of your home. Are they correct?

Assessments are generally tied to fair market value. A home’s attributes, such as square footage, number of rooms and type of property, are put into an automated valuation formula. Ask your assessor’s office for a detailed checklist and make sure it’s correct.

The value of a home assessment is usually done in two ways: based on recent sales, and based on replacement value as determined by an insurance company.

When to Ask for a Reassessment
If your home assessment is based on similar properties, then check on sales of homes in your area. If the assessor puts the value higher than at least three to five comparable homes, then you may want to appeal.

Property tax assessments are updated only every few years in some places. If property values have dropped significantly in your area since the last assessment and your property taxes haven’t changed, you can request a reassessment.

How to Appeal
Filing deadlines and procedures for an appeal should be included in your property tax bill. If not, look on the assessor’s website.

Submit your documentation, such as a list of comparable properties, in a letter or online for the review board to look at.

If you need help, hire a tax or real estate expert who specializes in tax assessment. If you win the appeal, the lower tax assessment should apply for a few years and make the fee worthwhile.

When filing an appeal, you’re still required to pay your property taxes on time and in full during the process. If you win, you’ll get a refund. There’s also the possibility that if it’s found that comparable home prices are higher, you could see an increase in your property taxes.

If you lose your appeal, you can appeal it to a state board or court, though those may require paying extra fees. At the very least, you can appeal your property tax bill next year when it arrives in the mail.

I hope you found this helpful. Contact me for more home and real estate insights and info.

Published with permission from RISMedia.

Siding is a critical component of a home that protects it from extreme temperatures, rain, snow and wind. Although siding is designed to last many years, it can become damaged over time by repeated exposure to the elements and lack of maintenance. If your homes siding needs to be replaced, you have many options.

Most Popular Siding Materials
The most commonly chosen type of siding is vinyl. Homeowners prefer vinyl siding because it is inexpensive and durable and requires little maintenance. Vinyl siding comes in an array of colors and styles and can even be made to resemble other siding materials.

Although wood siding has declined in popularity, many homeowners still choose it because of its strength and classic appearance. Several types of wood can be used for siding, and pieces can be cut into shingles or shakes. With proper maintenance, wood siding can last several decades. It requires caulking and painting or staining, and skipping those steps can cause the siding to become worn and damaged. Wood siding is also vulnerable to insects and rodents.

Stucco is made from a combination of sand, Portland cement, lime and water. Wood walls are covered with a waterproof barrier and metal screening, and then stucco is applied on top. With proper installation and routine maintenance, stucco can last a lifetime.

Fiber-cement siding can be manufactured in several styles and can be made to resemble wood, stucco or masonry siding. It can be easy to maintain and can resist fire and termite damage, but it is susceptible to moisture problems. The lifespan of fiber-cement siding depends on the manufacturer.

Solid brick used to be a popular option for the exterior of homes, but nowadays, a brick veneer covering a wood frame is more common. A membrane installed beneath the brick veneer can prevent water damage. Brick veneer is more expensive than other types of siding.

Stone house coverings, made from solid granite or limestone, can be a beautiful but expensive addition. Stone veneers cost less and are easier to install than solid stone. Both natural and synthetic materials can be used. Stone and stone veneer siding require very little maintenance.

How to Choose the Right Siding for Your Home
Replacing the siding on your house is an investment that can last for decades and increase your homes value, as well. The siding material you select should be attractive, durable and relatively easy to maintain. Options abound, and your choice will depend on the style of your home and others in the neighborhood, your personal preferences and your budget. Look at photos of houses with various siding materials and discuss your options with several local contractors. Compare quotes and warranties so you can choose the right material and company.

Published with permission from RISMedia.

If you’re shopping for a mortgage, you need to decide whether to choose one with a fixed or adjustable interest rate. An adjustable-rate mortgage, or ARM, might be a good idea if you’re only planning to stay in your home for a short period of time, but you need to ask questions and read the fine print first. You might be surprised by skyrocketing payments if you don’t understand the terms clearly.

How an ARM Works

With a hybrid ARM, the interest rate will change periodically based on market conditions. That means your monthly payments will also change. The interest rate will be fixed for a period of time, and then it will adjust periodically after that. The interest rate is typically low at the beginning, but it may rise dramatically once the fixed-rate period ends and the adjustment occurs. The lender decides which index to use to set the interest rate and adds a margin to the index to determine the interest rate on the mortgage.

Some lenders offer an initial discounted interest rate that is less than their fully indexed rate. This usually ends when the interest rate adjusts for the first time, which means the interest rate can rise significantly. The amount the interest rate can go up is capped periodically (from one adjustment period to another) and over the lifetime of the mortgage.

With an interest-only ARM, your payments for the first several years will only go toward interest. After that, you will need to pay for both interest and principal, which means your payments could skyrocket overnight.

A payment-option ARM allows you to decide every month whether you want to make a payment toward principal and interest, interest only, or a smaller payment that does not cover the total cost of interest. If you choose the last option, the unpaid interest and principal are added to the total amount of the mortgage.

Potential Problems

Many people have gotten into trouble with ARMs because of negative amortization. That happens when the amount of payments made is not enough to cover interest. The amount of unpaid interest is added to the loan, and then interest is charged on that. This means the total balance on the mortgage can actually increase, even if you make payments on time every month. Avoid an ARM if negative amortization is possible.

Some ARMs have prepayment penalties. You might have to pay thousands of dollars if you decide to sell your house or refinance your mortgage.

Weigh the Pros and Cons

The most attractive feature of an ARM is the low, fixed rate for the first several years. This could help you save a significant amount of money if you plan to sell your house before the rate adjusts. If you decide to stay in your house longer, your payments could become too much for you to handle. Before you choose an ARM, think carefully about your future plans and make sure you understand the terms.

Published with permission from RISMedia.

Taxes are an unfortunate fact of life. However, the tax code includes several provisions that can help homeowners save money when it’s time to file their returns. Making improvements to your home could potentially save you a significant amount of money, both now and when you eventually sell your house.

Tax Deductions Now

If you need to make home improvements for medical reasons, those costs could be tax-deductible. Upgrades such as adding a wheelchair ramp, widening doors to accommodate a wheelchair and adding handrails can be tax-deductible if they’re deemed medically necessary.

You can also get federal tax credits if you make improvements to increase the energy efficiency of your house. Installing solar panels, a geothermal heat pump, a solar water heater or other eco-appliances can lower your tax liability for the year that those items were installed.

If you know when you buy your house that you want to make some improvements, you might be able to have extra money for those projects included in your mortgage. Then you can deduct the interest for the entire mortgage when you file your income taxes.

Reducing Taxes When You Sell Your House

If you’re thinking about selling your house in the future, taxes may eat into the profit you make from the sale. Making improvements to your house when you own it might be able to reduce your tax liability.

When you sell your house, your profit will be calculated by adding the amount you paid for the house, including fees, plus all improvements you made over the years. That total is the adjusted basis. That number is compared to the sale price to calculate your profit.

The lower your profit margin, the less you’ll have to pay in taxes. If you’re single, the first $250,000 in profit from the sale of your primary residence is tax-free. For a married couple filing taxes jointly, the first $500,000 is tax-free.

It’s important to keep receipts for all home improvements, particularly if you’re planning to live in your house for many years and do a lot of work. Having all those records when you sell your house can help you reduce or avoid paying taxes on your profit.

Upgrades Could Help You at Tax Time

Home improvements can make your house more comfortable and energy-efficient when you live there. They could also save you money, either when you file your annual income taxes or when you eventually sell your house. It’s important to keep records of all the money you spend on home improvements and check with your accountant to find out how those upgrades will affect your individual taxes.

Published with permission from RISMedia.

In some communities, many houses dont have garages, or they have carports with a roof and open sides. For some homebuyers, the lack of a garage isnt a big deal because they walk or use public transportation to commute. For others, a house without a garage is a deal breaker.

Security
Storing your vehicle in a garage can be safer than parking it on the street. A garage reduces the risk of theft, vandalism and accidental damage, which can go a long way toward providing added peace of mind. A garage may even lower your insurance rates.

Weather
Anyone who has gotten into a car after it’s been sitting outdoors on a sunny day knows that the sudden, sweltering heat can be unbearable. Even if you crank up the air conditioning, it takes time to cool off the car, and, in the meantime, your clothes can become drenched in sweat. This is particularly problematic if you’re on your way to work.

On the other hand, if you live in an area that’s prone to wintry weather, brushing, scraping and defrosting your car’s windshield can take up valuable time in the morning when you’re in a hurry to get to work.

Parking a car in a garage can eliminate these problems, saving you a lot of hassle as you deal with the elements throughout the year.

Storage
If you buy a house with a yard, you’ll likely need space to store a lawnmower, gardening tools and lawn furniture. If you and your kids enjoy riding bicycles, you’ll need a place to keep them safe, as well. That means you’ll need a garage or a shed. You might be able to build either, but that would take time and money, and local zoning laws might restrict your options. You could make things easier on everyone involved by putting a garage at the top of your must-have list.

Resale Value
Unless you’re confident that you’ll stay in your new house for the rest of your life, you should consider its potential resale value. A garage might not be a priority for you, but it could be a must-have for future buyers. Even if the house has many strong points, prospective buyers could immediately rule it out if it lacks a garage, or you might not get as much money as you would if it had one.

How Important Is a Garage?
For many homebuyers, a garage is a necessity. If you own a vehicle, a garage offers safety and convenience, as well as extra storage space. Even if you dont need a garage, you could decide to sell your home in the future and have a hard time if it doesnt have one. Weigh the pros and cons and discuss the issue with your real estate agent.

Published with permission from RISMedia.