Home Buying in 90265>Question Details

Jim, Home Buyer in Malibu, CA

Hi, I'm wondering how accurate the tax assessed values are for properties for sale in Malibu?

Asked by Jim, Malibu, CA Wed Oct 10, 2012

To clarify, assuming these are recent assessments including any improvements, can these be used as an indicator of fair value?

Thanks!

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8
Not necessarily, these are just an assessment based on the last sales price. If the home was undervalued and someone paid less than market value (or vice versa) it won't be a good indicator.
0 votes Thank Flag Link Mon Oct 6, 2014
Taxes in California are for now determined by THE SALE PRICE. Howard Jarvis got a proposition passed by the electorate in 1978 known as PROPOSITION 13. It holds all property taxes to 1% of the value of the sale price of the property.

It was designed to protect the elderly from losing their homes, as the values increased and their income decreased. Most counties, including Los Angeles allow sellers to relocate within the county and keep their original tax base. Some counties around California co-operate and allow people to move from county to county and move their tax base.

The tax rate has been adjusted to 1.25% so that the county are able to collect a more dollars than originally mandated. The county ASSESSED value normally has no relationship to the actual tax owed.

It is important when buying a new home to negotiate the very best possible price for purchase, as that does determine what the tax will be and of course that's how you as a buyer get the best possibility for an increased return on your real estate investment.

Always use your own agent and choose an agent who is a negotiation expert!

Good Luck,

Jim
0 votes Thank Flag Link Sun Oct 5, 2014
If the assessment is within the last year and it was made for a non-distressed sale at arms-length on a standard sale (no short sales, no REO, etc., then it will be in the ballpark of today's fair market value.
0 votes Thank Flag Link Sun Oct 14, 2012
Jim,
The assessed values are based on the assessors value at the time of the sale,... then any improvements thereafter.
Each property is different.
Assessors make mistakes all the time.
Their job is to make a value on a home without seeing it.
As Diverse as Malibu is with top of the line ( Redone14 times) and crap ( non modified since 1973 when it was built ) two doors down the possibility for screw ups is easy.
Have you ever seen an assessor come to visit a property?
Nope neither have I as they sit in a cubicle and use info on their laptops sales, comps and google earth.
Take the steps if you feel over valuated. They do have + or - error rate that they are allowed of around 20% which I think is crazy.
Ask specifically for the comps ( addresses ) they used for their valuation.
In the hills in Calabasas they have similar issues as well.
0 votes Thank Flag Link Sat Oct 13, 2012
Jim it all depends when the property was bought. In California the last sale triggers what the Tax value is. Basically you have two options to find out what the true market value is of a property: 1. you hire an Appraiser to determine the value or 2. a free benefit use a Realtor and you will get a good and realistic value of what a property is really worth in today's market.
Should you need help feel free to reach out to me directly at homes@endrebarath.com or call me on my mobile. 310.486.1002 I represent buyers and sellers in Malibu

Endre Barath,Jr.
Prudential California Realty
Beverly Hills, CA 90210
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Wed Oct 10, 2012
No, there is a large disconnect between assessed value and market value. Differentials are often 10-25%
0 votes Thank Flag Link Wed Oct 10, 2012
Not at all. The assessed value is usually based upon the last sale. If you want an indicator of value, you should speak with a local Malibu Realtor. I'd be happy to help you, call me at (310) 403-4623 and I can offer you a Broker Price Opinion on the property based on comparables in the area.
0 votes Thank Flag Link Wed Oct 10, 2012
They can be a good general indicator with some exceptions. Properties are reassessed each time they are purchased by the value of the purchase price. Properties that have not been sold recently may be assessed much lower than their current market value.
0 votes Thank Flag Link Wed Oct 10, 2012
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