The bad news is that if you purchased your home in the last few years, it may have gone down in value.

The good news is that you may be able to have your home’s property taxes decreased due to that decline in value.

Here in Alameda County, the Tax Assessor’s office has a website with detailed information on how to determine if your home qualifies for  lowered property taxes.   Here is Alameda County’s site:  http://www.acgov.org/assessor/reassessments.htm, and examples that they have provided on that site to help you determine if it makes sense for you to apply for a reassessment:

• Decline in Value Qualifying Examples

  Example 1

  • I purchased my home in the early 1990s
  • The assessed value on my property for 2010-11 is $454,082.
  • The market value of my property as of January 1, 2010 was $660,000.

  Your property in this example does not qualify for decline in value relief, as the assessed value is lower than the market value.

  Example 2

  • I purchased my home in May 2008 for $600,000.
  • The assessed value of my property for 2010-11 is $610,548 ($600,000 x 1.01758).
  • Similar model homes in January through March 2010 sold for $575,000.

  Your property in this example qualifies for decline in value relief, as the sales of comparable properties indicate that the market value on January 1, 2010 is lower than the assessed value.

  Example 3

  • I purchased my home in September 2007 for $700,000.
  • As of January 1, 2009 comparable sales indicated a market value of $650,000.
  • I was provided a temporary reduction for the 2009-10 year because the market value was less than the assessed value.
  • As of January 1, 2010 comparable sales indicate a market value of $625,000.

  Since the property qualified for a temporary reduction for 2009-10, our office will automatically review the assessed value for 2010-11 and based on the indicated value the property qualifies for a further reduced assessment of $625,000.

 

If you’re not in Alameda County, you should be able to find similar information on YOUR county’s website.

If you need help determining your home’s current market value to see if it makes sense for you to apply to lower your taxes, call me at (510)  250-6702, or email me at MMitchell@apr.com, and I will provide you with sales prices of recently sold comparable homes.  

And remember, unless you’re comparing  homes within tracts with identical floor plans, online real estate sites such as Zillow.com can provide wonderful data, but their projected market values can vary greatly from actual values due to the wide variation in styles and amenities of  homes within a community

GOOD LUCK !