Don’t you just love public records? I’m all for transparency in government, but if you own a home, you (like me) probably receive a million pieces of mail “tailored” to your supposed wants and needs based on the data about your home and your mortgage that are on file with your County’s Recorder’s office.

I was horrified when I opened one such piece of mail this week. It was an “offer” for assistance in getting my property taxes reduced from a real estate broker purporting to “specialize in reducing people’s property taxes.”  He wrote on:

My research shows that because you bought your property at the height of the market, there is a very good chance that you are overpaying the property taxes on the property at ____________________ (my address.)

I am one of the most experienced and successful agents in the state at reducing property taxes. . ..

Please understand that I would not spend the money to send this letter unless I was reasonably sure I could save you money on your property taxes.

I’m reasonably sure he could, too. The thing is, though, ANYONE can do this – on their own – for FREE! 

If you bought your home within the last 2–3 years, it is likely that your current, assessed property value – the basis for your property taxes – IS higher than the current market value of your home. It is so commonly true, in fact, that many counties across the country have actually simplified the process of getting your property taxes reduced on the basis of the current market value. In Alameda County, where I live and own two homes, the Assessor’s Office has actually issued an new form called the Informal Request for Decline in Market Value Reassessment.  It’s a one-pager, with a couple of brief questions to make it super easy for you – and the County – to give you a tax break, albeit a tax break intended to be temporary, until the market rebounds.

If you get a letter like this from a real estate broker or real estate attorney – both professions of which I am usually a proud member – don’t take the bait! You can generally do the same things they can - for free! – and might even have an easier time dealing with your County – Counties tend to be a little less rigid with homeowners than they are with hired guns. 

Here are the steps to take to get your property taxes reduced on the basis of the decline in market value:

1.  Search Yahoo! or Google to find the website for your County Tax Assessor’s Office or Tax Collector’s Office.

2.  Go to the Forms section and look for a form with the words “reassessment request” or “decline in market value.” If you can’t find it, give the office a ring and ask them to fax, mail or email the form to you.

3.  Usually the request will ask you for (a) an estimate of the current market value of your home, and (b) a list of recent, comparable sales in your neighborhood supporting that estimate of value.

You have two routes you can take here:

1.  Call up the Realtor who sold you the house and ask them to complete the form for you or to at least provide the information necessary.  They want to keep you as a long-term client and referral resource, so 9 times out of 10 they’ll do it for you.

or

2.  Go to CyberHomes.com – you’ll get both an estimated value and a list of the comparable sales on which it was based.

For this step, keep in mind that you are trying to make the case that your property value is significantly lower now than when you bought it – so list legitimate comparable sales which support that argument, or you are wasting your time! In other words, don’t list the cutest, best, highest-priced homes – use lower priced homes that are similar and close to yours (within .5 mile, if possible).

4.  Sign it and mail it! Allow several weeks, then call and check on the progress of your request. If it’s accepted, you’re golden. If it’s denied, there will be a more formal application and appeals process available to you, and you can decide at that time whether it makes sense to undertake that.

Either way, you won’t have coughed up half your savings to some “consultant” to do something that should take you less than a half-hour to do yourself!

 

 

Filed under: Asset Protection, Sell