Homebuyers & Homeowners: What’s Your Tax and Permit Status?

Owner-occupied tax status and the pulling of work permits on your home are two very important subjects to be aware of.

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First, if you plan on purchasing a home soon, you should know that our property taxes are in arrears, which means that once November arrives, you need to file for an owner-occupied tax status.

This is a form your real estate agent should send out to you or remind you about. You must have this form completed and submitted before March of next year, otherwise, your taxes could go up 20% to 25%.

If you’re a current homeowner and you don’t remember filling out this form when you purchased your home and you feel like your taxes are higher than your neighbor’s, it couldn’t hurt to call the county courthouse and double-check that your taxes are in owner-occupied status. We’ve had a few homeowners call us recently who realized they were paying about 20% more in property taxes than they needed to be.

Here are some helpful websites for property taxes!

Lincoln County

Minnehaha County

Once November arrives, you need to file for an owner-occupied tax status.

Second, if you’re doing work to your home, please pull a permit if it’s necessary because this is an issue that will come up when you sell your home. On your seller’s property disclosure, it specifically asks: “Are you aware of any work being done to the property which required a building, electrical, or any other permit? Was a permit obtained and was the work approved by an inspector?”

Why is this important? We just had a homeowner who never bothered to pull a permit for some work they did, and it cost them several thousand dollars to redo it once they sold. Don’t let the same thing happen to you.

As always, if you’re looking to buy, sell, or you have any other real estate questions at all, don’t hesitate to reach out to us. My team and I would love to help you. 

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