When appraised value of house drops, should the assessed value also drop?

Asked by Russ, Riverside, CA Wed Dec 7, 2011

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15
Lance King, Agent, San Francisco, CA
Fri Aug 24, 2012
A lower appraisal does not trigger a lower reassessment. And the truth is that appraisals often don't have much to do with market value, especially on refinance. If you want to get reassessment, be prepared to have a lot of comps that support the reduction.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes
Garrigus Real…, Agent, Redlands, CA
Fri Aug 24, 2012
The county assessor may re-value the property. You can request a re-valuation by contacting your county assessor.
0 votes
kevin nguyen, Landlord, anaheim, CA
Sat Aug 4, 2012
will property tax/assessed value drop if there is a sale involved? in other words, I just bought and closed escrow a short sale house at 160k, that its assessed value in Riverside tax site at 202k, and tax rate is $2300 / year which is 1.14%, should I expect the tax drop to 160k*1.14%=$1820 per year for next year on?
0 votes
Steven Ornel…, Agent, Fremont, CA
Sat Mar 3, 2012
Witty:

The determination of assessed value is not tied to an Appraisal (unless of course it’s part of a successful Prop 8 challenge).

The process of assessed value increases and reductions are covered in this blog post:

"Estimating Property Taxes in CA"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

“Note that each year the Assessor compares the factored Prop 13 base year value to the current year Jan 1 market value after applying the California State Board of Equalization CA Consumer Price Index increase and uses the LESSER of the two figures.”

-Steve
0 votes
Marco Gomez &…, Agent, Jackson Heights, NY
Fri Dec 9, 2011
As much as we would love for Assessed values to drop the same as appraisal values, so homeowners can pay less in taxes, it is not the case. Generally County assessors, assess the property once a year and live don't you value them as much as an appraiser touch. The only recourse you have is to fight the assessed value which is a lengthy process.

Marco Gomez
NY state Associate Broker
Keller Williams Landmark II
Marco.gomez@gmail.com
0 votes
Shawn Ryan R…, Agent, Belleville, NJ
Thu Dec 8, 2011
appraised value done by appraiser being payed by owner

assessed value done by appraider being payed by city or town

no way to tie the two together

you can always file for a tax abatement from your city or town
0 votes
Lance King, Agent, San Francisco, CA
Thu Dec 8, 2011
Witty,

Logic would dictate it should. but don't count on it. Even when the value increases it takes many counties/cities a year or more to catch up.

The are avenues for appeal of values because it affects your taxes, but be prepared with data well beyond your new appraisal to support your claim. The agent who helped you buy should be able to get you comps of recent sales for your home to substantiate the claim.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes
Celia Hogan…, , Sioux Falls, SD
Thu Dec 8, 2011
It may not drop automatically. In South Dakota, you can appeal the taxes between November 1 (if you are a resident on November 1) and March 15.
0 votes
Joanne Berna…, Agent, Northfield, NJ
Thu Dec 8, 2011
Your assessed value is a big factor in determining your real estate taxes. If your assessed value is dropped, your taxes should decrease to! You will need to file a tax appeal with your municipality. There is a deadline each year to do this. In our municipality it is April 1. Check with your local tax office. Be prepared to support your claim with additional proof that comparable properties in your neighborhood have sold at reduced prices. A local realtor should be able to give you this information. There usually is a time limit where the sales are accepted as valid, ie. 6 months to a year from when they settled. Listing prices don't count, only sold values. Armed with that proof, and your appraisal, get the paperwork for the tax appeal from your local tax office and file an appeal! If you are successful your assessed value (and taxes) will be adjusted. Good Luck!
Joanne Bernardini
Keller Williams Oceanside Realty
Ocean City, NJ 08226
0 votes
Jeff Smith, Agent, Poway, CA
Thu Dec 8, 2011
Witty -
San Diego County has an assessment appeals form for this online. You may want to go to the Riverside County website and pull their form, if they have the same system.
Jeff
0 votes
Bill Eckler, Agent, Venice, FL
Thu Dec 8, 2011
Witty,

Sure makes sense to me.....however, this depends largely on the policy of your particular tax district. In some locations tax assessors have tried to adjust their numbers to reflect declining values while others have not.

For the most reliable information, we recommend being in touch with your local tax assessor's office.

Good luck,

Bill
0 votes
Suzanne MacD…, Agent, Morristown, NJ
Thu Dec 8, 2011
An assessor IS an appraiser and an assessment, like an appraisal, is nothing more than an opinon of value that was made at a particular time. In New Jersey homes are assessed only once every ten years or so. In between a mathematical formula is applied to adjust the assessed value so it more accurately reflects the market value. It is VERY rare that this formula decreases the amount of tax due but in theory it could happen. I have also heard the argument made that if other similar homes, same neighborhood, same square footage, same number of beds and baths and so on, are assessed at or near the same value you could have a difficult time getting an adjustment. Still it is worth a try. Contact your county tax assess or to learn the process and go for it. You've got nothiing to lose.
0 votes
Terry Bell, Agent, Santa Rosa, CA
Wed Dec 7, 2011
I wouldn't count on your county dropping it automatically! Contact your local assessor's office and find out what the procedure is for requesting to lower your assessment!
0 votes
William Hala…, , Riverside, CA
Wed Dec 7, 2011
Hi Witty, yes the county should automatically offer a reassessment but it is always prudent to check the 3 most current closed escrow sale in your area that are similar in sq footage age and amenities to your home, taking an average price per sq ft and comparing. You can always file an amendment to the assessors office
0 votes
Walter 'Skip'…, Agent, Brea, CA
Wed Dec 7, 2011
Hi Witty,
Yes you can appeal your assessed value with the county. Have a local realtor supply you with recent sales that will support the lower value.
Good luck,
0 votes
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