Odds are you got your updated assessment in the mail recently. It was that great-looking professional mailer that was in full color and had our Shelby County Property Assessor’s picture on it. It’s the one that cost taxpayers an additional $180,000 because your elected officials wanted it to look pretty. Odds are if you live in Collierville, Germantown, Arlington, Bartlett, or Memphis, you were sticker-shocked by the 20% to 75% increase in your property assessment. Odds are you’re ticked.
The good news is we have some recourse and some alternative ideas to recoup some of that increase.
Solution 1: Appeal
First things first- if you got an increased assessment, but still not sure how much that impacts what you will owe, you can use this calculator to see how much your Shelby County and City taxes are going up. Mine personally went up about 25%.
If you have concerns regarding the appraisal or classification, you can submit an informal review and appeal. Here is a link to the Shelby County Assessor of Property’s site that gives instructions on how to file an informal review and appeal.
Solution 2: Refinance
If you haven’t refinanced already, what are you waiting on? You can potentially offset some if not all of the increased taxes you’re going to have to pay. I, personally, went from 3.5% recently to 2.5%. I’m not sure what rates are currently available, but they are still incredibly low and if you haven’t looked at possibly refinancing in a while, now is the time to talk to a mortgage lender.
Don’t know any mortgage lenders? Shoot me an email at firstname.lastname@example.org and I can connect you with some of the best lenders in Tennessee.
Solution 3: Shop Your Insurance
You knew this was coming, right? Because we are an Independent Insurance Agency in Collierville, TN, and can shop with many of the top insurance carriers, we see that rates can vary a lot between insurance companies based on the specifics of each individual. One insurance company might have your homeowner’s insurance priced at $1000 a year while another might have it priced at $2500 a year. That’s the main reason we are independent. We get to shop a number of carriers for the best rates and coverage.
If you do want a local agency to help find the right coverage at the best pricing, click here.
Solution 4: Get Rid of Your PMI
Private Mortgage Insurance is no fun to pay. You’re basically paying insurance to protect the mortgage company from you foreclosing. However, once your pay your loan down to 80% or if you house’s value increase enough, you can potentially get rid of your PMI payment. There should actually be a disclosure from your closing docs from when you bought your house that gives a schedule of when the PMI comes off. However, your house’s value might rise quicker than that schedule.
Solution 5: Sell Your House
I get that this might be an extreme option, but hear me out. Money is tight for a lot of people right now and that is inflated even more so due to the pandemic. If you talk to a realtor, they will tell you that it is a seller’s market right now. That means that there is low inventory so seller’s are commanding and getting top-dollar for their houses. If you are struggling and this might be the straw that breaks the camel’s back, it might be worth getting ahead of it and testing the market. Even if you’re not necessarily struggling, this might still be a good time to take advantage of the current market.
A great realtor can help you navigate through the options and see if selling might be a good option for you. Need a good realtor for anywhere in Shelby County? Shoot me an email, and I can connect you with some of the best in town.