To stay legal while remodeling your home, you're going to need a permit for the work issued by the city in which the home resides. While posted at your home during construction, a copy heads straight to the county tax assessor's desk where the value of the home is recalculated upward. This increases the property tax associated with the home.

Be prepared for tax consequences, especially if you're purchasing a fixer-upper or a smaller home with plans to add on or build up. Adding square footage increases the tax bill, maybe not right away, but eventually.

Once the tax bill comes in, make sure it's reasonable. You can challenge the assessment if you think the new valuation is too high.