Property tax appeal.

Monday, May 04, 2009

by Rob Zwemmer

Monday, May 04, 2009

www.DesertRealEstatePrices.com

Good Monday Morning

82°F | 58°F

Let's talk about this property tax scenario and how it affects the marketplace.

We’re seeing a lot more confidence in the marketplace right now as prices stabilize and buyers are taking advantage of some great incentives. However, the property tax issue does come up once in a while, and it’s something our readers need to be aware of. In some areas, the property’s tax assessment is much higher than it should be because of the adjusting market, which definitely warrants concern. This is especially true in areas where home values peaked back in 2005 or 2006

What should people do if they think their assessment is too high?

Basically, there are a few approaches you can take. The most traditional remedy is to file a property tax appeal. In some areas, you can lodge an appeal at any time, while other states do impose a deadline. It helps to have some hard data to back up your claim. For instance, take a look at the tax records of similar properties and see if they have lower valuations. A good agent can help you with this.

You may also have grounds for an appeal if you can show that the “type” of Real Estate you own -- like a condo or luxury home -- has failed to keep pace with the local market. This is especially evident in new developments where builders have had to sell their homes at a loss, or in areas where there have been short sale sales or foreclosures.

So what’s the best first step?

Readers should check with their Realtor to see when the last time the property taxes showed assessment. This will help you track the changes in the market over time. Consider the location, size, and condition of your property to see if the basis for the assessment is accurate. Even in some states where the properties are identical, the value can differ dramatically due to the time it was built.

It helps to do your homework, and to work with a realtor who can advise you on the process. We need to restore every confidence to buyers and sellers on their investments, and the taxable assessment is an important factor.

But whatever you choose to do, if you plan on filing an appeal, don’t wait! Too many local governments limit refunds to the year’s prior bills and if you are up for a rebate for over payment, it’s better to find out now as a seller and as a prospective buyer.

Palm Springs Area Mortgage Market update!