How to Lower Your Costa Mesa Real Estate Taxes

There was a wonderful article in the Wall Street Journal this week about the fact that homeowners have the right to lower their property taxes. That certainly applies to those of you who own any Costa Mesa real estate, and you probably just got your tax notices in the last few weeks for the proposed real estate tax for next year. Everyone asks me how to lower your Costa Mesa Real Estate Taxes – here is the way.

 

I have helped lots of homeowners over the years by providing simple valuations – if you need help please contact me via my contact info at the end of this post.

Despite home prices in decreasing over 30 percent between 2007 and 2011, property taxes in Costa Mesa and across the U.S. increased by nearly 20 percent. There is good news, however; homeowners can fight back. Here’s a quick primer:

• Homeowners should keep in mind that property taxes do not always correspond with home values, because local governments typically don’t measure values every year and some have limits on annual property-tax increases.
• As a result, current property taxes might reflect the home’s value when the market was healthier. According to the Congressional Budget Office, property-tax adjustments lag behind changes in home prices by an average of three years.
• Although homeowners cannot change their property-tax rate, which is set by the local government, homeowners can get their assessment lowered if they appeal to their local assessor.
• One key to a successful appeal is fact checking the Orange County assessor’s work. About half of all successful appeals come from homeowners pointing out an error in the assessor’s description of the home, according to one property tax expert.
• During the appeal process, which is very similar to a less-formal court hearing, homeowners may present their case to several local officials or representatives. The simplest way to convince officials that a property has been incorrectly valued is to provide evidence of the sales price of homes that are comparable to the property being discussed.
  
  This should include square footage, amenities, and neighborhood characteristics. Sale documents and photos of the property in question, as well as the comparable properties also should be brought in. Do you have a recent appraisal? This would be great information to provide to the assessor during this process.
• Homeowners who have made improvements or substantial changes to the property should be cautious about appealing an assessment though, as it could have negative effects and actually increase the property’s value and, in turn, the property taxes.

Many of ideas here were found at the Wall Street Journal article and is courtesy of CAR. The ideas do transcend the national level, and many of our properties have dropped in value over the last four years. If you need help or an approximate valuation on your property, feel free to reach out to me at (714) 743-9882 or email me.