Home Buying in Laguna Hills>Question Details

Alexandra S., Home Buyer in California

Why wd a fixer upper be assessed for $185,752 more than ones w/same sq ft, same street, same year, w/nothing else special about it?

Asked by Alexandra S., California Mon Jul 18, 2011

This house is in a cookie cutter development - not a "model home" at all but a fixer-upper. $323,248 was the average assessment for 2-bedroom houses on this street in 2009 (latest assessment available online; 15 adjacent homes with the same square footage were used in this calculation). This house was assessed at $185, 752 more on average than the others. This house also has one of the SMALLEST lots for 2-bedroom properties on this street and it doesn't boast anything special like an ocean view. In 2006, the seller had paid $110,000 more for this house than the same one down the street - a cookie cutter with the same specs. He DID convert part of the living room into an additional bedroom (walled it off), "turning" it into a 3-bedroom, but keeping the same overall square footage. Does this conversion increase the price of the home by THAT much? How much should a third bedroom conversion increase the price of a home in Laguna Hills?

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4
Mark Gundlach’s answer
Karen's answer is absolutely correct. Adding to that, contact a local Realtor to get updated comaprable data from the MLS and don't rely too heavily on Tax Assessment Values. You're doing the right thing by asking a question in this forum. We are here to help!

<i>The "assessed" value is based on what the current owner paid for the home, not market value. Those are two different things. The tax assessor normally assumes that whatever the purchase price is for the home when it transfers title is the current value.

Prop 13 prevents them from adjusting the assessed value at will....they can only increase the tax by 2%/year.

So...if someone bought the first home for $185K and the one down the street for $320K you can see how the assessed values can be different? </i>
Web Reference: http://www.markgundlach.com
1 vote Thank Flag Link Thu Dec 8, 2011
No one knows what is going through the thoughts of a seller. Maybe theres bars of gold in the basement! honestly it sounds like there must be something more inside than the others. However upgrades of that amount would be useless for sales purposes in that area!
0 votes Thank Flag Link Wed Jul 20, 2011
Hi Alexandra,

The "assessed" value is based on what the current owner paid for the home, not market value. Those are two different things. The tax assessor normally assumes that whatever the purchase price is for the home when it transfers title is the current value.

Prop 13 prevents them from adjusting the assessed value at will....they can only increase the tax by 2%/year.

So...if someone bought the first home for $185K and the one down the street for $320K you can see how the assessed values can be different?

Does this make sense?

Karen
0 votes Thank Flag Link Wed Jul 20, 2011
Hi Alexandra,

The amount assessed for Property Taxes has nothing to do with the market value of the property. No, an additional bedroom is not worth $185K - maybe $3K-$10K. The owner of the property in question should contact a Realtor to pull some comps in the area (SOLD within the last 3 months, within a 1 mile radius of the property-the closer, the better). The owner should then file with the Tax Assessor using the SOLD comps from the Realtor to see if the Assessed Amount can be changed.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Jul 18, 2011
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