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On the page, the taxes, are listed as follow:
Property Tax
Year Taxes Land Additions Total Assessment
2018 Price Not Available $181,560 + $221,340 = $402,900
2017 $3,739 $201,410 + $99,422 = $300,832
2016 $4,069 $223,355 + $81,220 = $304,575
Does this mean that in 2017, the homeonwer had to pay $300,832 in Tax? That seems a lot of tax to pay on a $625,000. I am guessing that it must mean something else.
It tells you the amount. in 2017 taxes were $3,739 assessments means the property value that the local government thinks the value is, but if you buy it will go up to the new selling price.
Im surprised no one has mentioned going to the county website. I use Realtor.com a lot, but Ive found the taxes and appraised value is not always updated or even the same as the county records. My personal home is not correct.
I bookmark the county records page, open a new windows tab, and can search the property in less then 60 seconds.
It is in California. California has prop 13. The value is usually the sales price unless it was no an arms length transaction, meaning the buyers have no existing relationship before the sale.
If the sale price is lower than market value, an appraiser will assign an estimate of market value using sales comps.
It might be accurately reflective for one day: the day of sale. But real estate markets change quickly and dynamically and assessed value is soon worthless, even if properly calibrated to the actual sale. Plus, even a legitimate arms-length sale can indicate a false value conclusion. A highly motivated buyer might overpay for something he really wants. In which the case the assessed value is wrong even on the day of sale. My advice stands: do not use tax assessments to estimate value.
It might be accurately reflective for one day: the day of sale. But real estate markets change quickly and dynamically and assessed value is soon worthless, even if properly calibrated to the actual sale. Plus, even a legitimate arms-length sale can indicate a false value conclusion. A highly motivated buyer might overpay for something he really wants. In which the case the assessed value is wrong even on the day of sale.
In California, property taxes in an arms-length transaction are initially assessed on the market value (usually, if not always, this is the purchase price). You can check the Board of Equalization website (http://www.boe.ca.gov) for Property Tax Rules and Assessors' Handbook. http://www.boe.ca.gov/proptaxes/ahcont.htm
Buyers who "overpay" in order to ensure they obtain a property that they "really want" do so willingly and should not expect the Assessor—nor their fellow taxpayers—to cut them a deal on their property taxes, at least for the first year they own that new property which has been purchased in an arms-length transaction.
It seems to me that you are suggesting that the wealthiest buyers should throw their big bucks at a sale in order to "win" a property, but then should be entitled to a discount on their property taxes from the Assessor by claiming that the property they bought is not really "market value" even though those buyers themselves established the new higher market value of that property by virtue of willingly paying "too much".
Last edited by SFBayBoomer; 10-15-2018 at 09:29 PM..
I've had the problems the other way in that the Assessor attempts to assess more than paid in a Arm's Length transaction listed on the MLS with Brokerage.
These properties are ususally fixers... and that makes it hard.
One property the Assessor became to onerous with multiple unannounced visits I filed an appeal to lower the value and won!
I paid 600k and that included personal property with a bill of sale for 2k... so when the Assessor wouldn't stop I insisted the 2k be removed...
Got another one that I am certain will be an issue... the owners had several brokers out and paid for an appraisal... they did not want to stage or spend any money on paint, cleaning, etc...
I took their numbers and backed out the commission, staging and clean up and made them an As-Is offer with a 90 day no rent rentback... closed the deal... so I am sure it will be another fight in the months ahead...
The as-is and 90 day to get out after close cinched the deal... plus I have the estate lawyer's appraisal for 65k more than I paid...
Buyers who "overpay" in order to ensure they obtain a property that they "really want" do so willingly and should not expect the Assessor—nor their fellow taxpayers—to cut them a deal on their property taxes, at least for the first year they own that new property which has been purchased in an arms-length transaction.
It seems to me that you are suggesting that the wealthiest buyers should throw their big bucks at a sale in order to "win" a property, but then should be entitled to a discount on their property taxes from the Assessor by claiming that the property they bought is not really "market value" even though those buyers themselves established the new higher market value of that property by virtue of willingly paying "too much".
Focus. Please. The point is people should not rely on property assessment as a reliable measure of current value. That’s it. Look to current, model-match, closed comparable sales to estimate value.
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