Most every homeowner enjoys finding new ways to improve their home, and many of these improvements can greatly increase the value of the home. Unfortunately, some home renovations may also lead to a visit by the tax assessor and a higher tax bill.
Home Improvements That May Raise Your Taxes
• An Additional Bathroom: Many homeowners add a bathroom for their teenagers to share or for use as a guest bath. This is a great convenience, but the tax assessor will look at it as an improvement that will allow more people to reside in your home. Because this addition will increase the square footage of your home, this will raise the home’s value and raise your tax bill.
• Outside Improvements: If you enjoy your outdoor living space, then you may want to add improvements to make your yard more family friendly. Popular improvements include an in-ground swimming pool, a large deck at the back of your home and even a simple storage or garden shed. All of these items have the potential to increase your property value and your tax bill.
Know Your Facts Before Making Improvements
These are just a very few of the many home improvements that may trigger a reassessment of your property and potentially raise your taxes. It’s best to do your homework before you commit to making any improvements so that you can decide if any potential tax hikes will be worth the improvements. Both your real estate agent and your local tax office may be contacted for more information.