Travis Kim, Home Buyer in 90039

What should I make of the fact that property tax is so low relative to the price of home?

Asked by Travis Kim, 90039 Tue Jun 4, 2013

This question was asked from http://www.trulia.com/property/3117015056-5657-Stoll-Dr-Los-…

Help the community by answering this question:

Answers

9
The taxes are based upon the rates when the home was purchased by the current owner. This could be up to 40 years ago or longer. The taxes will not be the same when you purchase and the home is re-assessed.
0 votes Thank Flag Link Mon May 26, 2014
The taxes are low due to the fact that the current owners have owned the house for a long time ,as soon as the home sells the taxes will rise to approximately 1.125-1.25 % of sales price .
0 votes Thank Flag Link Sun May 25, 2014
Most probably is due to the fact that the property has been owned for a long period of time, and the taxes will re-assess on the next property purchase.

If you are not already working with a reputable and good buying agent i would be more than happy to make your property search as effective and smooth as possible.

I am more than happy to answer any questions you may have no matter the circumstances.

Best of Luck finding your home!

Josh
http://www.joshsixxrealestate.com
0 votes Thank Flag Link Sat Jun 8, 2013
Properties are assessed for taxes based on value at the time of change of ownership/ whenever sold based on sales price. Tax assessors may re-assess every year and adjust the tax amount no more than 2 percent per proposition 13. So if a property purchased 20 years ago now is worth double the purchase amount, its current taxes wont match the current value. If you are buying a property right now you have to calculate your taxes based on the price you are paying.
0 votes Thank Flag Link Wed Jun 5, 2013
Hi Travis,

Prop 13 is another reason a property's tax would appear low if the Seller's have owned the property for a long time. This, and other property tax details, can be found at:

"Estimating Property Taxes in CA"
http://tinyurl.com/bjjledz

-Steve
0 votes Thank Flag Link Wed Jun 5, 2013
Hi Travis,

Just so you know, this property is currently in escrow, and is no longer available unless you want to make a backup offer, which I would be happy to explain and walk you through.

Like the others mentioned, the tax rate might be low if the property has been owned for a long time or if it was purchased in a foreclosure. However, the amount of tax you pay will be based on the assessed value of the home at the time of purchase, which will likely be more than it shows now.

Feel free to contact me directly at JamieTian@RodeoRE.com if you have any other questions/concerns. I would also be happy to send you a list of available properties that fit your search criteria (let me know your price range, location, number of bedrooms, etc).

Best,

Jamie Tian
Rodeo Realty
(310) 717-1321
JamieTian@RodeoRE.com
DRE #01920120
Web Reference: http://www.jamietian.com
0 votes Thank Flag Link Wed Jun 5, 2013
Another possibility is that the home was purchased in foreclosure sale at a very low price. This too "resets" the assessable tax value.
0 votes Thank Flag Link Wed Jun 5, 2013
Is this why I see a certain home (quite a lot of homes) purchased, get fixed up and put on the market at 200% of the price tag? So many homes in the listing were for instance, were sold at $200k then 4 months later is on sale for $330k....
Flag Wed Jun 5, 2013
John is correct. Values get reassessed upon transfer, so the current owners have probably had the property for some time.
0 votes Thank Flag Link Wed Jun 5, 2013
Many homes have low tax payments because re-assessments haven't caught up with changes in the home's value. When a home is purchased, the home is automatically re-assessed and the tax payment will be re-set based upon the purchase price. In other words, the current tax payment is not what you'd pay if you bought the home. You would need to apply the tax RATE to the purchase price to estimate your new tax payment.
0 votes Thank Flag Link Wed Jun 5, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer