Understanding The Property Taxes and Special Assessments!!! Temecula, Murrieta, CA
UNDERSTANDING THE PROPERTY TAXES AND THE SPECIAL ASSESSMENT TAXES 
The variance can be HUNDREDS of dollars a month. There is so much information to cover on this topic so I am merely trying to summarize in hopes that this helps you understand a bit. Your Realtor can and should give you the information you need in regards to the property that you are considering for your purchase!
Here in the Temecula Valley, Murrieta, Winchester, Menifee and surrounding areas THESE ARE 2 VERY IMPORTANT QUESTIONS TO ASK.
What is the property tax rate? What are the special assessments?
PROPERTY TAX RATE
The property tax rate is a percentage for that specific area, generally for these areas, the percentages do not have a great variance to them. What you need to know is that tax will vary in dollars, it is based on the assessed value of the home by the tax rate for that area.
This is an Example (not intended to be your home figures)let's say a home has an assessed value is $300,000 and the tax rate is 1.03013. Yearly taxes will be approx $3,090.39 or approx $257.53 per month.
NOTE.... The current assessed value by the county may not be what your assessed value will be.
SPECIAL ASSESSMENTS OR MELLO ROOS
The special assessments are what can push you over the edge. That can vary significantly depending on when, where and who built the home. Once established, they generally will not vary or change even when the property value changes except if a particular bond expires or government decides to make a change.
This is where the big variance comes in. An older home built in 1988 will in general but not always, be hundreds of dollars per month less than a home build in 2006. The newer homes will more than likely have bonds that you must pay for a specific period of time. This bond or bonds are usually embedded in the special assessments. The time frame for these bonds can vary so it is best to call and find out the terms on each bond that is on the property. When the bond expires, your special assessments should go down. Again, if you have a Realtor they should be able to provide this information to you.
Property Taxes and Special Assessments should be a very important factor in , although you may save money in special assessments on an older home... They are gendetermining your decision in the investment of your home!!! When you are in the possession of this information, you should be in a better position to make the best choice for you in evaluating your finances for the purchase of your home. This is one of the biggest investment in your life so make a wise choice that is best for you! Also...Keep in minderally not as energy efficient as the newer homes. This may cost you in higher utility bills. The insulation, windows and other factors are not as good unless the property has already had upgrades regarding these items.
So bottom line is that the total property taxes that you will need to pay is...
(Property Tax rate x Assessed value) + total special assessment for the year = total tax for year.
Divide by 12 to figure approx monthly amount.
One last thing I want you to keep in mind.... when a lender tells you that you qualify for $300,000. Know what that means!!! More often than not it is based on a property taxes and special assessment value estimated between 1.25 and 1.5. In this area, most the newer homes exceed that. So if you are looking for a newer home you may need to look for a home valued under $300,000 to compensate for the high property taxes. You do not want get into escrow, pay for appraisal and inspection.... just to find out that you cannot get the loan because taxes are too high and it puts you over your expected monthly payments. Or... finally find the house of your dreams.... just to find out it is out of your range!
I hope this helps a little in getting you on your way to finding that wonderful home that is meant for you!!!
Thinking about buying or selling a house or relocating to Temecula or Murrieta? COME AND VISIT. If you have any questions about this area I am only a phone call or an email away.
Dianne Hicks
Tarbell, Realtors
email diannehicks@di4homes.com
phone (951) 514-5709
website http://www.di4homes.com
The Realtor You can Expect More From!!!
Comments
I have had to go to the Assessor’s office with clients and friends lately to sort things out. If the bill was already prepared for the previously assessed amount then the current owner who purchased the property for half of that amount still has to pay the tax bill. Then they get a refund for the amount overpaid based on their sale amount...
I now get a bill printout of taxes owed and let the buyers know ahead of time what their bill and refund will be, if in fact that is the case: Two reasons, one to make sure that any delinquent taxes are paid by the bank, with short sales, and two, to let the new owners know what is going on before escrow is closed.
The Riverside County Assessor's office is currently doing a blanked re-assessment of all Riverside County properties based on prices back in 2002 and 2003. What a mess.
Good for you! Great post that consumers need to pay attention to, before they even place an offer on a home!
I agree, whenever possible I print out the record and staple to the back of the listing so they can see full picture of current tax status as they are reviewing the house for consideration. Tax rolls being down has been a nightmare!!! Coming from a computer programming background, I say get with the times Riverside County. There is no reason for the system to be down while updating. It would be a simple matter of locking current record it is updating but our hands are tied in that matter.
In addition, I think a good idea to use just in case county falls down on the assessing job, it is also great to give buyers when house closes, a form from the county with 2 - 4 comps to use as a backup process in case the record falls through the cracks. On that note, all you homeowners that have a value that is assessed to high, contact local Realtor, get updated comps and submit with form to County for a reassessment (just know ahead of time it can take serveral months to actually be processed).
I wrote a similar blog on my website awhile ago, but it wasn't nearly as detailed as yours.
I would also like to add that I like your answers in the Trulia Voices community. You never try to self promote, which is how it's supposed be; I get so tired of reading agent's answers that are all about them and how they are the best. I respect you. Keep it up!
I am not a great writer but I felt it was a very important issue that so many agents do not focus on. Lay on the line so they can make the decision that is best for them.
I also want to thank you for your kind words, they are greatly appreciated. I especially appreciate that you took your time to express that to me, It made my day! :) Actually, I have noticed also that you are one of the few that do the same, I always notice and have an admiration for that. . I think smart people can tell the difference and someone who is confident in their ability does not have to go there and someone who has to puff themselves so they can try to make a buck and not care about much else.
Your information is very detailed oriented. I've actually learned a few things from your Blog. Love your format and attention to detail.
I've read most of your Blog's on Trulia and Active Rain.
Great job! Agents and client's should appreciate your hard work alike!
Have a good evening!
Ahhhhh, blushing (grinning). Thank you so much for such kind and thoughtful words, they are truly appreciated!!!
This is coming from a retired RE paralegal preparing to migrate to Riverside Co. Your info is terrific, and oh so timely! I've referred you to my Facebook page.
We have been considering the Hemet area, and also Elsinore/Murrieta, since I've lived in both in the past, and we just can't afford San Diego anymore. But, having had a business in Temecula, I know there were a lot of problems with city management, the old guard, etc, when I was there in the 90's.......has it changed at all for the better since then?
Keep up the good work!
WJ Carroll
Thank you so much... I am honored!
Yes, the city managment it has changed tremedously. It is run very smoothly. But... you better obey the traffic laws because the police are everywhere and they will not blink in writing you a ticket(LOL).
Kindest Regards,
Dianne