Why did my Escrow Account increase?
Property taxes tend to adjust a lot in the first year or two of you purchasing your home. This tends to happen because the local assessor’s office is now aware of the true value of the home. The home may have been well under assessed if the seller of the property owned the home for several years.
Here is how you can tell if you are paying the right amount of property taxes. In January 2008 you should receive a statement from your assessor’s office that looks like this. I have included an example that should help you recognize the form I am describing.
To figure out how accurate your assessment is, you must take the taxable value times two. This is not a perfect test, but it will get you very close to paying the correct amount of property taxes. When you take the taxable value times two and the amount you come up with is much higher than your home is worth you should act immediately.
Disputing your taxable value to the local assessor’s office usually requires immediate action. In the City of Grand Rapids, the assessment form is sent some time in January, and the dispute form has to be delivered to their office by the middle of February. Time is of the essence with most assessors’ offices. Your best bet is to contact your local assessor’s office immediately if you would like to dispute your taxable value and ask them what is the easiest and most efficient way to go about getting this corrected.
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