Appeal tax assessment: Should you appeal your property assessment in Los Angeles County, California?
Property owners in Los Angeles County are completely aware of the burden of property taxes; those that have invested their lives in locations where these taxes are typically high feel the impact more than many. The impact of these taxes can be even worse for those who have resided in their homes for some time, as they have seen firsthand the taxes increase year after year. The bad news is maybe overpaying your residential property taxes and be totally uninformed. Here are some common reasons individuals are overpaying their residential properties tax.
Is your Los Angeles County property over evaluated?
A high property evaluation is the main factor that people appeal the amount they are paying on their real estate tax. In many cases, people feel that the appraisal placed on their residential property does not show the market value need to they attempt to offer it today. The most convenient method to discover this out is to contact some regional real estate agents. They ought to be able to inform you the series of values comparable homes are selling for in your area. Remember, the real value of your home will not be realized until a sale is finally closed. When you receive your house valuation, you will be given a 30-day window in which to appeal any valuation. Otherwise, you will have to wait until next year to appeal.
Can you get the real market value of your house?
It is probably beneficial to get in touch with a regional real estate representative or your assessor in Los Angeles County, California. If you feel your home has been severely overvalued, an expert evaluation might prove really economical in the long run
Most do not know you are not entitled to dispute your real estate tax bill directly in California, however you can undoubtedly submit an appeal, remember that regardless of how you feel about the bill, if you do not pay, it can result in the foreclosure of your home.
To effectively appeal, you will require to reveal a minimum of 3 similar properties that have actually been evaluated at a lower assessed value. The closer these residential properties are in size and place to yours, the higher the opportunity of success you will have on appeal
Particular circumstances that may have decreased the value of your home
If there are exceptional circumstances that directly result in the decrease of your property value and these are not shown in your house assessment, these are clear grounds for appeal. Simply provide evidence of these circumstances, and the appeals process should be straightforward.
You have just recently bought your property in Los Angeles County, California for lower market value than the assessed value
If you have proof of the purchase price of your home or you possess a recent appraisal that does not show the amount your house has been valued at by the assessor, this is clear premises for appeal. If an expert evaluates your residential property much lower than that of the tax assessment, this is substantial evidence to back your petition. You can always order a new appraisal despite the fact that this will cost a couple of hundred dollars it could be worth it in the end. The good news is that you do not have to accept a high real estate assessment; you can always appeal and get them decreased while doing so.
How do you appeal your real estate assessment in Los Angeles County?
Every State has their own criteria for real estate assessment value appeals. One thing they all have in common; the only groungs that they will accept is that your home has been evaluated higher than it‘s worth. As your Los Angeles County property taxes are computed basically by multiplying the evaluated value of your house by its areas set tax rate, you do not have any premises to appeal the tax rate just the property assessment. Your only avenue of approach is to prove your house is less than the value the assessor believes.
On receiving your home assessed value, your county will give you a predetermined window in which to appeal. These can vary considerably from 30 to 90 days so your county appeal deadline is the first thing you want to determine. However, remember if you miss this due date there’s nothing you can do, and you will be required to wait a further year for an opportunity to appeal your house assessment!
The fastest and simplest way to file an appeal in Los Angeles County is to do so on the website of your county, town or city. The fees associated with each request can vary dependent on the preliminary value of your house assessed value. The expense of an appeal differs could be as little as $10 to $100, depending upon where you live.
The first step in the procedure is to make sure that your regional tax assessor has included the correct house details to start with. In some cases, details may be incorrect such as, homes have actually been raised with basements that do not exist; such examples are wrong and might lead to your home value being decreased right away. The more information that you can gather regarding why you feel your home is overvalued, the stronger your case for an assessment appeal.
If there are no obvious problems with the info on your property, you will need to discover information of equivalent homes in your community that have a lower assessment. This will be the most convenient way to show your case. You will want to find 3 or four properties that are all the same size as yours, in the exact same location, whose value is much less lower than your property; this will be your premises for appeal.
In some areas, you’ll be asked to go to a property appeal hearing, so if this does occur, don’t be intimidated. In general, these hearings are simply contacted us to allow you to provide the info you‘ve collected in support of your claim. You will likewise be allowed to examine any false info that may be on file about your home. You should be ready for this hearing and have all the data you have actually gathered about comparable houses and sales of similar homes in Los Angeles County.
Be ready for the tax assessor to argue his/her counter-argument. One of the most popular ones here is that your home in concern is more modern-day than the ones you’re comparing it to. Be ready for such an argument because if you get to this point, the Assessor believes you are not deserving of a reduction in assessment and will want to win his/her case by embellishing on the facts to support their position. It’s is always important to bear in mind that there are no additional penalties connected to submitting an appeal; the worst outcome being that your house assessment is the same.
Is it worth filing an appeal?
If you genuinely feel that your home has actually been miscalculated, an effective appeal of your Los Angeles County property assessment value might result in substantial cost savings. If there are just a few hundred dollars of prospective cost savings, it might not be worth your time. You also need to consider that the hearing could be arranged during a workday, which might result in a loss of earnings. Find out as soon as possible when the hearings take place, and will it be a teleconference or in-person hearing. This way you can make the arrangements to minimize wage loss.
Prorations - Real Estate Tax and Property
To prorate means to divide something so that each person pays her fair share. The real estate term for dividing expenses that are paid after they are incurred or are prepaid is called prorations. For example, sometimes real estate taxes are paid in arrears. This means that they are paid currently for the year before. The practical effect of this is that the buyer will in many cases get a tax bill for time when she did not own the house and therefore was not responsible for the taxes.
An example will make this easier to understand. Let's say you closed on the house you bought on August 31, 2007. You are responsible for 4 months worth of real estate taxes for 2007. Unfortunately, the tax bill does not arrive until May of 2008. This is where prorations come into play. At the closing, you will be responsible for 1/3 of the tax bill that will arrive in May, 2008. That means the seller will give you, the buyer, an amount equal 2/3 of the agreed to prorated tax amount and you will pay the real estate tax bill.
The tricky part comes about because real estate taxes always seem to be going up. This is usually handled as part of the negotiations. The buyer will ask for an amount based on the seller's last year's tax bill plus a small percentage, usually 5 or 10% extra, and some agreement will be reached.
An unusually large increase in the real estate taxes due to a reassessment, rate increase or both can further complicate matters. With the gains in real estate prices in the recent past, many taxing bodies have become eager to capture at least part of that gain. So it is buyer beware and make sure you check with the local taxing authorities.
Prorations can also be used to adjust for any expenses that have been paid by the seller ahead of time, such as prepaid mortgage interest, prepaid casualty insurance, or such items as rent or utility bills.
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