It is probably quite apparent that the U.S. economy is experiencing inflation, or rising prices on consumer goods. You may be concerned about our grocery and utility bills going up, but there are also some benefits to inflation – including the rising value of your home.
This means that you will have the same property assets, but they will be worth substantially more dollars. If you are looking to sell your home or put it up as collateral, you can expect to get a greater sum for the same property without making any real improvements.
The downside, however, is that your real estate taxes will be going up (although it will take between one and three years for your real estate taxes to start adjusting for the increase in value.)
The takeaway is that the next few years are going to be a period of volatility in the real estate market. It will require real insight to predict how your real estate assets will perform, which is why you should rely on Diamond Real Estate Law to manage your real estate needs.
Why Your Illinois Home’s Value Is Increasing
As the price of goods and services goes up due to inflation, the cost of building homes naturally rises.
This means that the price of new homes will go up, which, in turn, will throttle the ability of prospective buyers to purchase newly constructed homes.
More buyers will resort to buying previously-owned homes, which will drive up prices on existing properties.
Rising Home Values and Taxes in Illinois
Over the last few years, we have seen rapid increases in property values. As the value of your property rises, so can your real estate taxes which are based on the assessed values.
In Illinois, most assessors reassess every property once every three years. Depending on the last time your property was assessed, it will take between 1 and 3 years for the assessor to adjust the value of your property for the current market conditions.
Of course, you want your property to appreciate in value, and you want to minimize your tax exposure. Every year (usually during the summer) the assessor assesses the value of your property. Once the assessor finalizes their calculations, they send you a notice of your property valuation.
The best thing to do is watch for your assessment notice in the summer. Once you get it, look at what the assessor says your property is worth and make sure you agree with it. Once that notice is published, you only have 30 days to dispute the value. If you do not dispute it within that 30 day period, you will probably not be able to appeal your real estate taxes.
If you don’t believe the assessment is accurate, it is important to contact a real estate attorney like McHenry’s Adam Diamond to see if you have a strong basis to dispute the valuation.
The most important thing is to watch for assessment notices in the mail or newspaper during the summer to make sure you preserve your right to appeal your real estate taxes.
Choose Diamond Real Estate Law
Diamond Real Estate Law has become the firm of choice for many Illinois families who want to sell a home quickly and seamlessly. Contact Diamond Real Estate Law today to work with our team.
DISCLAIMER: Any information contained herein is solely for informational purposes. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.