My New Blog

Recently, I appeared with a client at a tax reassessments appeal hearing in Orange County. My client bought his home just as the market was turning downward in mid 2006 for $890,000 in the city of Fountain Valley (Orange County, CA). After I did his retroactive appraisal last week, we discovered it was worth less than $800,000 by January of 2007. (Incidently, it's now worth about $725,000). The client was appealing his January 2007 assessment, as very well he should have. Not only did the County Assessor not recognize that he lost almost $100,000 on his home, the Assessor actually said his value increased 2% (the maximum allowed by Proposition 13, or they probably would have increased it more).

I was somewhat surprised to find that the hearing officials actually tried to defend the Assessor's action, even when presented with overwhelming evidence from my client's appraisal. The Assessor had his own representative appraiser at the hearing who presented evidence (although weak) to support the tax increase, but our facts were hard to overcome. In the end, my client will have his assessment reversed and decreased, but probably not to the full extent that the market dictates.

For those of you considering a reassessment appeal, more decreases are coming with time. The County officials are slowly loosening up, and the 2008 Assessment Appeals will be very successful, in my opinion. I'm sure the Assessor's Office is under strict orders to fight these assessments appeals as much as possible, but their attempts are becoming more anemic and futile as property values continue to drop and affect every facet of our economy.

If you purchased your home in the last 2 years it's very likely your market value has dropped below your tax assessment level. Do not expect the Assessor to automatically decrease your assessed value, you will need to request it. Even when this declining market forces the hand of the Assessor to cut some tax assessment levels on a "few" homes, I guarantee it will be only cut a token amount. When you request an appeal, even an informal appeal over the phone, they will require some sort of appraisal or comp search on your part.

If you are interested in appealing your tax bill, send me a quick email and I will reply with my suggestions, or at least point you in the right direction. My contact info is;   mcrose@coastappraisalinc.com