Receiving a Property Tax Reassessment Due to a Decline in Market Value.
Why pay for a service when you can easily do it yourself?
Many homeowners receive unsolicited offers for assistance in getting their property taxes reduced by companies purporting to specialize in reducing property taxes. Some are cleverly disguised to look like mandatory bills which if not paid will trigger an increase in taxes. Not only is it possible to have your property value reassessed and have your taxes reduced due to a decline in market value, it is a requirement that the tax rolls reflect an accurate value of property, both real and personal (By the way, if you think Buildings, Bulldozers and Boats, you will have a good idea of what an Assessor must value). Homeowners do not need to hire a service to do this.
If you bought your home within the last four to five years, it is likely that your current assessed property value is higher than the current market value of your home. In most areas of California annual reassessment is an assumed, automatic increase in value. It is not an actual re-evaluation of current market value based on market transactions.
Given the large scale nature of this situation, many counties have simplified the process of getting your property taxes temporarily reduced based on the current market value. A homeowner can generally do the same things property tax reduction services do with just a little effort. In fact local property owners might even have an easier time dealing with the County. (Local government offices tend to be friendlier with homeowners than consultants.)
First, you may try going in to your Assessor’s Office and just ask for a reduction in Assessed Value. It would be best to talk to the Appraiser assigned to your area, keeping in mind that you might need to make an appointment.
Alternatively, go through the following steps:
- Find the Web site for your County Tax Assessor’s Office.
- Go to the Forms section and look for forms with the words “reassessment request” or “decline in market value.” If you cannot find it, call the office and ask how to get it.
- Usually the request will ask for an estimate of the current market value of your home, and a list of recent, comparable sales in your neighborhood supporting that value.
- Contact the REALTOR® who sold you the house and ask them to provide information about comparable sales. Most will be happy to assist you.
- Find an online valuation site, like www.Zillow.com, where you can get an estimated value and a list of the comparable sales on which it was based.
- You are trying to support the fact that your property value is lower now than when you purchase it. List legitimate comparable sales which support that argument.
- Deliver the form! Allow several weeks, then call and check on the progress of your request. If it is accepted, you have a reduction — for this year. Once you have received a reduction, it is considered temporary. California’s Proposition 8 requires reevaluation every year and your assessment could return right back to previous assessment levels, but never more than allowed under Proposition 13.
Regardless of the way you choose to complete the process, you will not pay a fee to an “Assessment Reduction Specialist” to provide a review of your property assessment!©
Rolf Kleinhans is a Broker/REALTOR™ with Recreation Realty Inc./Sierra Cascade Properties in Nevada City, and a Licensed Appraiser. He also holds a Masters Degree in Business Administration from UCLA, concentrating in Real Estate and Finance and has over 25 years experience in transacting and valuing property. Actively involved with the Nevada County Association of Realtors (NCAOR), he has held all officer positions of NCAOR including President. He can be reached at 530-559-5000 or www.SierraCascadeProperties.com.
Rolf Kleinhans is also a Candidate for the Nevada County Office of Assessor 2010. www.ROLFforAssessor.com.
