New Homeowners Urged to Review Property Tax Assessments for Potential Long-Term Savings

Newly minted homeowners may have an opportunity to cut long-term housing costs by reviewing the accuracy of their property tax assessments, according to real estate experts.

“A home sale will typically trigger a property tax reassessment,” said Sal Cataldo, a real estate attorney and partner at O’Doherty & Cataldo in Sayville, New York. “You’ve gotten a wealth of information about your house, whether you realize it or not.”

A property tax assessment determines the taxable value of a home. Errors in that valuation—such as incorrect square footage or outdated information about the number of bathrooms—can result in overpayment of taxes.

House | Source: Pexels

Cataldo notes that many recent buyers already have the necessary documentation to begin an appeal. Title reports, home inspections, appraisals, and mortgage statements gathered during the purchase process can be used to support a reassessment request.

“It’s not uncommon for properties to be over-assessed,” said Pete Sepp, president of the National Taxpayers Union Foundation. “It pays to check.” NTUF estimates that between 30% and 60% of taxable properties in the U.S. are overvalued by local assessors.

Success in appealing a property assessment can lead to annual tax savings. According to Realtor.com, over 40% of homeowners nationwide could save $100 or more per year, with median savings of $539.

House | Source: Pexels

The frequency of property reassessments varies by jurisdiction, meaning a successful appeal can provide tax relief for years.