Real estate taxes too high?

Real estate taxes too high? Do you feel your real estate assessment is too high? Filing for a real estate tax abatement in North Andover Massachusetts involves a specific process with common steps to follow. An abatement is a lowering of the assessed value on real or personal property. The lower assessment results in a lower tax bill. Abatements may be issued for reasons of:

Overvaluation – the assessed value is too high compared to the actual real estate market.

Disproportionate Assessment – property is assessed in excess of assessments of comparable properties.

Improper Classification – for instance, a property is classified as commercial land when it is actually residential land.

Statutory Exemption – the property is exempt from taxation based on use.

Are you eligible for a rebate?

Understand Eligibility: To be eligible for a tax abatement, you typically need to demonstrate that your property is over-assessed or incorrectly assessed. Common reasons for seeking an abatement include a recent decline in your property’s value, errors in the assessment, or physical damage to the property that affects its value. Research your city or town’s specific eligibility criteria.

Check Deadlines: North Andover has specific deadlines for filing an abatement application. You must meet this deadline to be considered.

Before proceeding, consider consulting a real estate professional to get a true market value of your property, a tax professional or attorney who specializes in property taxes to help you navigate the process, especially if your case is complex or if you are unsure of the eligibility criteria and evidence required for your specific situation.

What next?

Obtain the Abatement Application: Contact your local tax assessor’s office or visit their website to obtain the necessary abatement application form. In some cases, this may be available online.

Gather Supporting Documentation: Collect any documents or evidence that support your claim for a tax abatement. This may include recent appraisals, photographs, or any other information that demonstrates your property’s overassessment or the reason for your request.

Complete the Application: Fill out the abatement application form accurately and completely. Be sure to include all required information, such as your property details, the reasons for your request, and the supporting documentation.

File the Application: Submit your completed application to your local tax assessor’s office. It’s recommended to keep a copy of the application and any supporting documents for your records.

Review and Decision: The assessor’s office will review your application. They may contact you for additional information or clarification. They will determine whether your request is valid and whether a tax abatement is warranted.

Decision Notification: You will receive a decision in writing from the tax assessor’s office. If your abatement request is approved, you will receive a revised property tax bill reflecting the lower amount.

Appeal if Necessary: If your abatement request is denied, you may have the option to appeal the decision. The appeal process varies by municipality, but it typically involves filing an appeal with the local board of assessors or the Massachusetts Appellate Tax Board.

Pay Taxes: Continue to pay your property taxes based on your original tax bill until a decision is reached regarding your abatement request.

It’s crucial to follow your specific city or town’s guidelines and deadlines for real estate tax abatement applications, as they can vary. Some communities may have additional forms or requirements.

Action by the Assessing Department

The Assessing Department has three months from the date of filing to process all abatement applications. You will be informed of the status of the application through the following notices:
NOTICE OF APPROVAL: The Assessing Department will abate the amount specified in the notice. If the tax has been paid, the taxpayer will be reimbursed by the city.
NOTICE OF DENIAL: No abatement will be granted. A denial will be issued in cases where the Assessing Department has made a decision based on the merits of the abatement application.
NOTICE OF DEEMED DENIAL: An application is deemed denied if the department has not made a decision on an abatement application within three (3) months of its filing date.

If you are dissatisfied with the decision of the Assessing Department, you may file an appeal to the Appellate Tax Board. It is located at 399 Washington Street, Boston, MA 02108-5292. The telephone number is 617-727-3100.  Appeal to the Appellate Tax Board

 

 

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Building wealth through real estate

Building wealth through real estate is a goal pursued by many investors, but it’s important to recognize that it typically requires a combination of strategy, knowledge, resources, and time. Here are some steps and strategies to consider if you want to build wealth through real estate:

Educate Yourself: Start by learning about the real estate market, including different types of properties, financing options, and local market conditions. Read books, take courses, and follow real estate news to gain a solid understanding.

Set Clear Goals: Define your financial goals and investment strategy. Are you looking for short-term profits, long-term wealth, or passive income from rental properties? Having clear objectives will guide your decisions.

Build a Solid Financial Foundation: Real estate often requires significant upfront capital. Ensure you have a good credit score, an emergency fund, and manageable debt before starting your real estate journey.

Develop a Business Plan: Treat real estate investing as a business. Create a detailed business plan that outlines your strategies, financing options, and expected returns on investment.

Start Small: Consider beginning with a single property or a smaller real estate investment, like a duplex or a single-family home. This will allow you to gain experience and learn the ropes without taking on too much risk.

Choose the Right Location: Location is a critical factor in real estate. Look for areas with strong job growth, good schools, low crime rates, and potential for appreciation in property values.

Understand Financing: Learn about different financing options, including mortgages, hard money loans, and seller financing. Explore the best financing option for your investment goals and financial situation.

Invest in Income-Producing Properties: Rental properties can provide a steady stream of income. Select properties that have the potential for positive cash flow after expenses, such as mortgage payments, taxes, insurance, and maintenance.

Leverage Your Investments: Real estate often allows you to use leverage by borrowing money to purchase properties. When used wisely, leverage can amplify your returns, but it also comes with risks, so be cautious.

Add Value: Look for properties that you can add value to through renovations, improvements, or better management. Increasing the property’s value can lead to higher rents and greater appreciation.

Diversify Your Portfolio: Don’t put all your eggs in one basket. Diversify your real estate investments to spread risk. Consider different types of properties (e.g., residential, commercial, industrial) and various locations.

Network: Build a network of real estate professionals, including real estate agents, property managers, contractors, and other investors. Networking can provide valuable insights and opportunities.

Be Patient: Real estate investing is often a long-term game. Be prepared for market cycles and fluctuations, and avoid making hasty decisions based on short-term trends.

Seek Professional Advice: Consult with real estate professionals, financial advisors, and attorneys to ensure you’re making informed decisions and complying with all relevant laws and regulations.

Monitor and Adjust: Regularly review your real estate portfolio and financial goals. Make adjustments as needed to align with your objectives and market conditions.

Building wealth through real estate is achievable but requires careful planning, perseverance, and an understanding of the risks involved. It’s essential to be patient and adaptable as you work toward your wealth-building goals.

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The What, Why, and How of Flood Insurance

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Natural disasters, like what towns and communities in Massachusetts’s have experienced have the potential to wreak havoc on our lives and properties. Flooding stands out as one of the most destructive forces of nature. As climate change continues to impact weather patterns, the risk of flooding has increased significantly in many regions. In this blog post, we will dive into the world of flood insurance – what it is, why it’s important, and how it works. Whether you’re a homeowner, renter, or business owner, understanding flood insurance can be a crucial step in protecting your assets.

What is Flood Insurance?

Flood insurance is a specialized type of insurance coverage designed to provide financial protection in the event of flood-related damage to your property. Unlike typical homeowner’s insurance, which usually excludes coverage for floods, flood insurance specifically addresses damages caused by rising water, heavy rainfall, storm surges, or other water-related incidents. This coverage is typically offered through the National Flood Insurance Program (NFIP) in the United States, as well as through some private insurance companies.

Why is Flood Insurance Important?

Limited Coverage in Standard Policies: Most standard homeowner’s insurance policies do not cover flood damage. As many home owners in North Andover have found out; this means that if your property gets damaged due to flooding, you would be responsible for covering the repair and replacement costs out of your own pocket, which can be financially devastating.

Increasing Risk of Flooding: With the changing climate, the risk of flooding has increased in many areas. Even if you live in a region that hasn’t historically been prone to flooding, the changing weather patterns and increased urbanization can lead to unexpected flood events.

Peace of Mind: Floods can strike without warning, leaving little time to prepare. Having appropriate  insurance provides you with peace of mind, knowing that you have a financial safety net in place should the worst happen.

How Does Flood Insurance Work?

Flood insurance policies typically cover two main components: building property coverage and personal property coverage.

Building Property Coverage: This part of the policy helps cover the physical structure of your home or property, including its foundation, walls, electrical systems, plumbing, appliances, and more. It’s important to accurately assess the value of your property to ensure you have adequate coverage.

Personal Property Coverage: This component covers your belongings, such as furniture, electronics, clothing, and other personal items. Keep an inventory of your possessions along with their estimated values to facilitate the claims process.

Considerations:

Coverage Limits: Flood policies have coverage limits, which means there’s a maximum amount the policy will pay out. Be sure to understand these limits and consider purchasing additional coverage if your property’s value exceeds the limit.

Waiting Period: Many flood insurance policies have a waiting period before they become effective. This means you can’t purchase coverage just before a flood is predicted to arrive for immediate protection. Planning ahead is key.

Elevation and Risk Factors: Premiums can vary based on your property’s elevation and its proximity to flood-prone areas. The higher the risk, the higher the premium.

Conclusion:

Insurance for flooding is a vital tool in safeguarding your property and possessions from the devastating effects of flooding. With climate change increasing the frequency and severity of flood events, the importance of having appropriate coverage cannot be overstated. By understanding what this type of insurance covers, why it’s crucial, and how it functions, you can make informed decisions to protect your investments and find peace of mind in an increasingly unpredictable world.

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