I need money to pay real estate taxes, what should I do? You have several options to round up the funds to make your arrears that you may have, or your outstanding balance due. In this article, we’ll go over many ways to raise some money to make your property tax, along with going over some ways you can reduce your annual obligations to the county or city treasurer, regardless of the mill rate charged in your county. Let’s dig in.
Ways to Reduce Property Taxes
Assessed Values: In a soft housing market, property values and the values of the improvements go down. Unfortunately, assessed values are only done every few years. To combat this, ask for a reassessment of your home as soon as possible.
Local Comps: What have similar home sold for in your area recently? If they have sold for less, you have a good chance to decrease your assessed value and pay less in real estate taxes. If you need money today to pay your taxes, there’s a good chance you’ll need it next year to. Being proactive is almost always preferred. You may need to file a petition to get this done.
Ways to Avoid Falling Behind
If you need money to pay real estate taxes, what’s going to change next year? As you know by now, getting a new assessment is a good proactive approach. Of course, there are other things you can do to reduce the burden of keeping up with the payments to your county for your home and property.
Included in Mortgage: How are you paying your mortgage? Many banks will allow you to roll your mortgage payment, property tax, and homeowners insurance all into one payment each month. You’ll still pay the same amount, but in small, monthly amounts. This makes it easier to budget and be prepared.
Installments: This will vary depending on where you live. In some areas, the full amount of real estate taxes is due in one payment. Some areas will allow you to pay in two or even three payments. Call the treasurer’s office to find out if this option is available for you.
Reasons People Fall Behind
There are many different reasons people fall behind on their real estate taxes and need money to make good on them. Listed below are some common reasons for this, at least one of which will likely apply to you. Knowing the problems now can help you to avoid having the same problems in the future.
Increased Assessment/Mill Rate: In many cases, the assessed values of homes and properties increases every few years. This means that you could have been fully prepared to pay the amount you expected to pay, only to find out you have to pay more. Keep on top of current events in your community, like reassessing values of homes, houses, real estate, and property in general, to avoid needing money for taxes.
Bought a New Home: Most often, the new homebuyer is given a credit off the purchase price for a proportional amount of the taxes. For example, if you buy a home exactly half way through the year and the previous year’s real estate taxes were $2000, you would get a $1000 credit off the price of the house. At the end of the year, the buyer would be required to pay the full tax liability. Many first time homebuyers don’t realize this is how it works.
Poor Budgeting: Maybe you just didn’t do a good enough job of planning. If so, you really need to sit down and plan out a budget. This will help you out for the next year.
Getting Money to Pay Real Estate Taxes
Of course, if you need money to pay real estate taxes, you may need to explore means of borrowing money. Banks, online lenders, credit unions, or even friends and family members are all potential sources of cash when you need it. If you have some equity in your home, you may be able to get a line of credit at your bank.
In addition, you may look to sell off assets. This can be a great option when you realize; I need money to pay real estate taxes.