Property Taxes Too High? Get Reassessed!
Written by Susanne on September 19th, 2008
My sister, a new homeowner (see my post – The American Dream), called me regarding a letter she received offering assistance to get her property taxes reduced. The letter stated that she could save hundreds of dollars in property taxes and it would cost her less than $200. She was so excited and thought “what a deal!”
That very same week I also received a similar letter. Mine was from a local real estate agent purporting to “specialize in reducing homeowner’s property taxes”.
I’m reasonably sure that either one of the above could get the job done and get our property taxes reduced, but the thing is, ANYONE can do this – on their own – and for FREE!
Here’s what you need to know
If you bought your home within the last 2 or 3 years, it is likely that your current assessed property value – the basis for your property taxes – is higher than the current market value of your home.
In California the County Tax Assessors office determines your property taxes off the sale price of the home. The reassessment every year is an automatic increase of 2%, rather than an actual reevaluation of fair market value based on factual market dynamics.
You also need to know that any reduction will be temporary. The law allows the assessor to raise your property taxes back up at a later date to the original tax assessment plus the 2% per year increase.
Here’s what you need to do
With property values continuing to decline, many counties have actually simplified the process of getting property taxes reduced based on the current market value of a home.
To get your property taxes reduced on the basis of the decline in the real estate market:
Go to your county website to the Forms section and look for a form with the words “reassessment request”, “contesting your property value” or “decline in market value”. If you can’t find the form give them a call and ask them to e-mail, fax or mail the form to you. I have included a few county sites below:
www.lacountypropertytax.com – LA County
assessor.countyofventura.org – Ventura County
www.oc.ca.gov/assessor – Orange County
www.riversidetaxinfo.com – Riverside County
www.sbcounty.gov/assessor – San Bernardino County
Usually the form will ask for an estimate of the current market value of your home and to list the recent comparable sales in your neighborhood supporting that estimate of value. How do you obtain this info? Here’s what you do:
Call the real estate agent who sold you your home and ask that they complete the form for you or at least provide a list of comparable sales. Realtors want to keep you as a long-term client, friend or referral source, so 9 times out of 10 they will do this for you.
Alternatively, go to either www.zillow.com or www.cyberhomes.com – you’ll get both and estimate of value and a list of comparable sales on which it was based.
Keep in mind that you are trying to make a case that your property value is significantly lower than when you bought it – so list legitimate sales that support that argument. Use only homes that are similar to yours, same room count and square footage (within 1 mile), that have sold, preferably in the last 6 months.
Sign it and mail it! Allow several weeks before you call and check on the status. If it’s accepted you’re golden. If it’s denied, there will be a more formal application and appeals process available to you.
So if you get a letter like the one my sister and I received – don’t take the bait and pay a fee. You can do the very same thing they can do….. and for FREE!
