Property tax dispute: Should you appeal your property’s assessed value in Santa Clara County, California?
Homeowners in Santa Clara County are completely knowledgeable about the problem of property taxes; those that have actually spent their lives in areas where these taxes are typically high feel the impact more than most. The impact of these taxes can be even worse for those who have resided in their properties for some time, as they have experienced firsthand the taxes increase year after year. However the bad news is maybe overpaying your real estate tax and be entirely uninformed. Here are some common reasons people are overpaying their homes tax.
Is your Santa Clara County property over evaluated?
A high property valuation is the main factor that people appeal the dollar amount they are paying on their real estate tax. In most cases, individuals feel that the valuation put on their home does not show the marketplace value need to they try to sell it today. The easiest way to find this out is to call some regional real estate agents. They should be able to inform you the series of worths comparable properties are selling for in your location. Keep in mind, the actual market value of your property will not be realized until a sale is finally closed. When you receive your property valuation, you will be given a 30-day window in which to appeal any appraisal. Otherwise, you will need to wait until next year to appeal.
Can you get the actual market value of your home?
It is most likely worthwhile to call a local property representative or your assessor in Santa Clara County, California. If you feel your residential property has actually been severely overvalued, an expert valuation might prove really economical in the long run
Most do not realize you are not allowed to contest your tax bill directly in California, however you can unquestionably lodge an appeal, remember that regardless of how you feel about the bill, if you do not pay, it can lead to the foreclosure of your home.
To effectively appeal, you will require to reveal at least 3 comparable homes that have been assessed at a lower value. The closer these properties remain in size and area to yours, the greater the opportunity of success you will have on appeal
Particular circumstances that may have reduced the value of your home
If there are exceptional situations that directly result in the reduction of your home value and these are not reflected in your property assessment, these are clear premises for appeal. Just provide evidence of these situations, and the appeals process should be straightforward.
You have actually just recently bought your home in Santa Clara County, California for lower market value than the assessed value
If you have evidence of the purchase price of your home or you have a recent appraisal that does not show the dollar amount your home has been valued at by the assessor, this is clear grounds for appeal. If an expert values your home much lower than that of the tax assessment, this is significant evidence to support your appeal. You can always request a brand-new appraisal despite the fact that this will cost a few hundred dollars it could be worth it in the end. The bright side is that you do not have to accept a high real estate assessment; you can always appeal and get them lowered at the same time.
How do you appeal your house assessment value in Santa Clara County?
Every State has their own requirements for real estate assessment appeals. One thing they all have in common; the only argument that they will accept is that your residential property has actually been assessed higher than it deserves. As your Santa Clara County real estate taxes are calculated 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 assessed value. Your only avenue of approach is to show your home is valued less than the value the assessor thinks.
Upon receiving your home assessment, your county will provide you a predetermined window in which to appeal. These can differ 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 forced to wait a further year for a chance to appeal your house assessed value!
The fastest and easiest way to submit an appeal in Santa Clara County is to do so on the assessment website of your county, town or city. The charges related to each request can vary dependent on the initial value of your property assessment. The cost of an appeal varies could be as little as $10 to $100, depending on where you live.
The first step in the process is to make sure that your regional tax assessor has included the appropriate house details to start with. In many cases, details may be in error such as, houses have been lifted with basements that don’t exist; such examples are wrong and could cause your house value being decreased instantly. The more details that you can gather as to why you feel your house is miscalculated, the more powerful your case for an appeal.
If there are no clear concerns with the details on your property, you will need to discover information of similar homes in your community that are assessed at a lower value. This will be the simplest way to prove your case. You will want to discover 3 or 4 homes that are all the same size as yours, in the exact same location, whose value is much less lower than your own; this will be your grounds for appeal.
In some locations, you’ll be asked to go to a real estate appeal hearing, so if this does take place, do not be frightened. In general, these hearings are simply called to enable you to present the information you‘ve collected in support of your claim. You will also be allowed to examine any incorrect information that may be on file about your home. You need to be prepared for this hearing and have all the information you have actually gathered about similar homes and sales of similar houses in Santa Clara County.
Be ready for the tax assessor to argue his or her counter-argument. One of the most popular ones here is that your home in concern is more modern than the ones you’re comparing it to. Be prepared for such an argument because if you get to this point, the Assessor believes you are not deserving of a reduction in assessed value and will want to win his/her case by elaborating on the facts to support their case. It’s is always crucial to remember that there are no additional penalties attached to filing an appeal; the worst result being that your real estate assessed value is the same.
Is it worth filing an appeal?
If you really feel that your house has actually been misestimated, an effective appeal of your Santa Clara County house assessed value could result in considerable savings. If there are just a few hundred dollars of prospective savings, it may not deserve your time. You also need to consider that the hearing could be scheduled during a workday, which may lead to a loss of profits. 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 reduce wage loss.
Property Tax - Pros and Cons
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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