As much as 60 percent of taxable property in the United States is over-assessed.
That startling fact comes from the National Taxpayers Union, a Washington, D.C., advocacy group.
Just as assessments increased during the real estate boom, they should now be lower for most homeowners — especially in California, where property values have plunged.
Telltale signs that your property may be over-assessed include:
Your neighborhood looks like foreclosure alley. When homeowners bail out of a neighborhood en masse, property values for the remaining homes can plummet.
Your neighbors have lower assessments. Similar homes (size/age/construction, etc.) should have similar assessments. Likewise, look for comparable homes in the area that have sold for less than your appraised value.
You bought your home in a bidding war. If you bought at the peak of the market and competed with other buyers for the same property, the sales price was probably overvalued. An overvalued property is an over-assessed property.
Your tax bill contains errors. Your tax bill lists your condo as a single-family home, or adds extra rooms to your place. That’s a problem. Mistakes happen more often than you may think. Many assessors don't even come on your property to inspect it. They may use historical information that's wrong (for instance, your home's square footage might have been incorrectly calculated on original construction documents).
You have “value reducers” in your home or area. When compared to other homes, your assessed value should be lower if your home is impacted by drainage problems, easements, heavy traffic, nearby railroad tracks and freeways. Ditto for depreciation factors, such as structural cracks, deterioration or chronic defects.
You Can Fight City Hall
If your property taxes haven't declined along with your house's value, you can take action: Appeal the assessment.
Sure, the process is tedious and bureaucratic, but appeal work is something most homeowners can do — about on par with representing yourself in small claims court.
The good news is that your chances of winning are good. Nationally, about one-third of the people who challenge their taxes see some savings. And we’re talking real money here. Consider an appeal for a $350,000 house where the value is reduced by 5 percent. This would reduce the assessed value by $17,500 and the property taxes by $525, based on a 3 percent tax rate.
Most property tax appeals are resolved at an informal hearing, which is the first step in the process. Your local tax collector’s/assessor’s office is the place to start. You can review comparable home tax valuations in your neighborhood either online or in person (these are public records, so don’t take “no” for answer).
You may also need the services of a good home appraiser (call a reputable real estate agent in your area and ask for a referral). This person will check your home and report his/her findings to your local property tax office. You can also hire a real estate agent with access to your local multiple listing service. They can quickly generate a comparable market analysis of homes both recently sold and those in escrow to hone in on your home's true value.
“I Protest!”
If you meet with the assessor but fail to reach an agreement, the next step is to protest the assessment.
Before your hearing, gather all your evidence and put it in order. For example, you may want to collect photos of comparable properties or put the market data into a spreadsheet that makes it easy for the hearing officials to follow your argument. Consider sitting in on somebody else's hearing before your appeals date to see how the board operates and get a sense of what arguments do and don't work.
To successfully make your case, you'll need to find three, five or more comparable homes in your neighborhood with lower assessments. Remember that truly comparable homes are homes nearly identical to your home's floor plan, age, lot size, improvements and other factors.
For More Information & Free Insurance Quotes Please Contact Jason Shroot @ Diversified Insurance
714-988-3325
