Are property taxes really that high on new homes in Orange County?

[expatCA]

Originally Posted by slo1318

How does the assessor determine the value? Is it disclosed in real estate transactions?

Yep disclosed as the sale price.

[Ultrarunner]

Prop 13 requires a property be reassessed upon transfer... 99% of the time the sales price is used and taken from the recorded deeds and/or required property transaction detail form that the assessor reviews... it has interest rate if financed, loan term, etc.

Several times the Assessor contested the price I paid even though it was through the MLS and listed with a broker...

The last time it did frost me... so at the same time the Assessor wanted to use price higher than I paid, I filed for a reduction and won... the sales price included $2,000 worth of personal property negotiated in the purchase and since the Assessor was making a big deal, I demanded the 2k be removed and it was... my 600k purchase price was reduced to 598k and was a far cry from the 680k the assessor wanted... unlike neighboring property this home had never been remodeled and was all 1958... and thus the lower price.

[Jennyrx2007]

Originally Posted by Ultrarunner

Prop 13 requires a property be reassessed upon transfer... 99% of the time the sales price is used and taken from the recorded deeds and/or required property transaction detail form that the assessor reviews... it has interest rate if financed, loan term, etc.

Several times the Assessor contested the price I paid even though it was through the MLS and listed with a broker...

The last time it did frost me... so at the same time the Assessor wanted to use price higher than I paid, I filed for a reduction and won... the sales price included $2,000 worth of personal property negotiated in the purchase and since the Assessor was making a big deal, I demanded the 2k be removed and it was... my 600k purchase price was reduced to 598k and was a far cry from the 680k the assessor wanted... unlike neighboring property this home had never been remodeled and was all 1958... and thus the lower price.

Hi Ultrarunner,


I'm hoping if you can help me with my situation. I bought my house last year Oct 2015 at $660K and received a letter from the assessor that they reassessed my house and is now taxing me at $725K. I sent them the appraisal from the bank which was appraised at $660K and they didn't agree with that appraisal. My impression is that they think my house is worth more and that I paid under the table the difference to get the lower price. I did not paid under the table and bought the house for $660K.
Any ideas how to win the appeal and be able to pay taxes based on my purchase price? Thanks so much

[Ultrarunner]

Each California county has a formal appeal process.

In my county a filing fee is collected... think it was $50 last time I appealed.

Once filed, the Appeal Board has 2 years to act meanwhile the full tax as billed must be paid.

I have never lost an appeal... but, the process can wear you down and many drop out.

Prop 13 states Fair Market Value at the time of transfer... which most often is the sales price when sold conventional with brokerage, MLS, commission, etc.

I've had values challenged several times... one angle the assessor has used is saying that repairs should be added to the purchase price... in other words any repairs need to be added to the purchase price.

In my case one home needed foundation work... I made the case it does but I may never do it... as the home is usable for me as-is...

In another... the Assessor actually made several visits to see if I had many ANY repairs/updates... 3 visits only to see the same Formica, Linoleum, etc... was left untouched.

In California it is crucial to have the assessment accurate as it is the basis going forward.

If you bought from a parent or possibly a grandparent... there are special rules that may apply to keep the original assessed value...

[Jennyrx2007]

Originally Posted by Ultrarunner

Each California county has a formal appeal process.

In my county a filing fee is collected... think it was $50 last time I appealed.

Once filed, the Appeal Board has 2 years to act meanwhile the full tax as billed must be paid.

I have never lost an appeal... but, the process can wear you down and many drop out.

Prop 13 states Fair Market Value at the time of transfer... which most often is the sales price when sold conventional with brokerage, MLS, commission, etc.

I've had values challenged several times... one angle the assessor has used is saying that repairs should be added to the purchase price... in other words any repairs need to be added to the purchase price.

In my case one home needed foundation work... I made the case it does but I may never do it... as the home is usable for me as-is...

In another... the Assessor actually made several visits to see if I had many ANY repairs/updates... 3 visits only to see the same Formica, Linoleum, etc... was left untouched.

In California it is crucial to have the assessment accurate as it is the basis going forward.

If you bought from a parent or possibly a grandparent... there are special rules that may apply to keep the original assessed value...

Thanks so much for your response. I did spent about $20K to upgrade the bathrooms and kitchen. Will it hurt my chance of appeal if the assessor actually come out for a visit? Do you have any tips in preparing for the appeal process?
Thanks!

[Jennyrx2007]

Originally Posted by Ultrarunner

Each California county has a formal appeal process.

In my county a filing fee is collected... think it was $50 last time I appealed.

Once filed, the Appeal Board has 2 years to act meanwhile the full tax as billed must be paid.

I have never lost an appeal... but, the process can wear you down and many drop out.

Prop 13 states Fair Market Value at the time of transfer... which most often is the sales price when sold conventional with brokerage, MLS, commission, etc.

I've had values challenged several times... one angle the assessor has used is saying that repairs should be added to the purchase price... in other words any repairs need to be added to the purchase price.

In my case one home needed foundation work... I made the case it does but I may never do it... as the home is usable for me as-is...

In another... the Assessor actually made several visits to see if I had many ANY repairs/updates... 3 visits only to see the same Formica, Linoleum, etc... was left untouched.

In California it is crucial to have the assessment accurate as it is the basis going forward.

If you bought from a parent or possibly a grandparent... there are special rules that may apply to keep the original assessed value...

Thanks so much for your response. I spent about $20K to upgrade the bathrooms and kitchen. Will it hurt my chance of appeal if the assessor actually come out for a visit? Do you have any tips in preparing for the appeal process? Seems like a hassle process to go through and the government is just out to get our money
I live in Orange County btw.
Thanks!

[Ultrarunner]

Originally Posted by Jennyrx2007

Thanks so much for your response. I did spent about $20K to upgrade the bathrooms and kitchen. Will it hurt my chance of appeal if the assessor actually come out for a visit? Do you have any tips in preparing for the appeal process?
Thanks!

A formal appraisal is most helpful along with supporting information as to how the property was marketed.

Many times once you file for a Formal Appraisal you will be approached with a figure you can accept of reject as the Assessor focuses in on your property.

My most difficult appeal was a for sale by owner because the Assessor tried to make a point that the property had not been exposed and I was able to buy below market... it was sold as-is and I did make improvements... in the end it was stipulated at a higher value than my purchase price and significantly less than what the Assessor originally wanted...

In another case the number of visits was simply to see if I had made any upgrades... I had not and the property was on the MLS.

Each county will have a format for the process and you will have an opportunity to present supporting evidence...

There are also firms that specialize in Assessment Appeals for a fee or percentage.

Just be aware that it can be a two year process that tends to drag on... they have your money so no rush to give any back.

[Jennyrx2007]

Originally Posted by Ultrarunner

A formal appraisal is most helpful along with supporting information as to how the property was marketed.

Many times once you file for a Formal Appraisal you will be approached with a figure you can accept of reject as the Assessor focuses in on your property.

My most difficult appeal was a for sale by owner because the Assessor tried to make a point that the property had not been exposed and I was able to buy below market... it was sold as-is and I did make improvements... in the end it was stipulated at a higher value than my purchase price and significantly less than what the Assessor originally wanted...

In another case the number of visits was simply to see if I had made any upgrades... I had not and the property was on the MLS.

Each county will have a format for the process and you will have an opportunity to present supporting evidence...

There are also firms that specialize in Assessment Appeals for a fee or percentage.

Just be aware that it can be a two year process that tends to drag on... they have your money so no rush to give any back.

I really appreciate your responses, thanks Ultrarunner !!