Curious as to your insights on first year ownership and tax spike. I recently received my tax bill for a property I purchased in Chicago and was stunned to see an increased in assessed value of about 50%. The previous owner's assessed value was much less than what their purchase price was when they acquired 10 years ago, however, my tax assessed value was in line with my purchase price (slightly above purchase price). My question is whether an increase of this nature is reasonable or whether I should appeal the increase? Also, would I qualify for the chicago homestead exception? Any recommendation for lawyers who are particularly good at appealing the increases?
If you buy higher than the tax assessment your taxes will be readjusted to the purchase price. You can try appealing it but chances are it won't do much. If you buy lower than the assessment you have to appeal it cause the city will not adjust it automatically.
Chicago taxes are paid in arrears, so this bill is from last year. Depending on when you moved into the property you can apply for a 2015 homeowners exemption next year
Raila & Associates P.C.
These guys have served me well in the past with tax appeals on my properties.
Plus they will only bill you a portion of any savings realized if there are any.
I second the recommendation of Andrea Raila. I saw her recently at the WCRT meeting here in Chicago. The woman was not only very educated on the topic, but made a boring topic very entertaining. She clearly knows her stuff. I have a few properties she is appealing for me. I will let you know how it goes.
We too also use Raila & Associates P.C.for all of our properties. In crook county you must contest every year, make sure your excemptions are right, and be sure to document all vacancy.
If you purchased from a senior citizen who was using the senior property tax freeze, their taxes may have been artificially lower because of the freeze. Be wary of this law when purchasing a sfh home or 4 unit or less rental buildings and bake this tax hike into your valuation.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing