FAQ
Why do so many newer tracts of homes built around 2005 have so many houses that are not assessed accurately?
Communities that were built over the past five years were built during the peek of the housing market and have since seen values decline rapidly. Frankly, the Assessor has not kept up on the decline in some cases and therefore home owners need to present accurate information to the Assessment Appeals Board to make sure that they are not paying too much in property taxes.
What makes your company different from those companies we get letters from in the mail?
There are a number of ways we are different: 1) We are local and we are extremely familiar with the Sacramento Region since we are actually based in Rancho Cordova; 2) Some of the other companies are at times known to provide home owners with less than quality work; 3) We are glad to talk with you about the process, educate you about what to expect, and stand before the Appeals Board on your behalf. We view our work as something that truly assists and informs the property owner; 4) We are upfront and honest with you. We are not a gimmick and we don’t try to send you something in the mail that looks like a bill from the Assessor but is not (have you received one of those from a company wishing to “help” you?); 5) Lastly, big companies that target home owners can often times have a distaste in the eyes of the Assessor because of the great amount of applications that these companies send in and the less-than-quality level of work they produce. Many times these companies are not located anywhere near Sacramento at all.
Where is your company based?
We are based in the Sacramento area (Rancho Cordova).
The Assessor sent me a letter stating that they lowered my property taxes, so why is this relevant to me?
Imagine this scenario. You purchased your home (or commercial property) in Sacramento County for $550,000 in 2005 and so you were paying about $6,000 in property tax based upon 1.25% (the maximum percentage in CA). The assessed value of your home was based upon the purchase price which was assumed to be fair market value at the time of sale. Your home has since declined in value over time and the Assessor says your home is now worth $450,000. Thankfully your current taxes get bumped down then to around $5,500 based on the adjusted assessment at $450,000.
This is wonderful news, right? You are happy to save five hundred dollars and the Assessor looks really good too in light of gaining a ton of positive publicity in the media because he has “lowered property taxes”. The Assessor event sent you a letter stating that your property taxes would go down. This should be great cause for celebration, but the only problem is that your home is actually worth somewhere between $375,000 and $400,000 rather than $450,000. In effect, this means that you are being taxed on $50,000-$75,000 of value that you don’t actually have. In essence, this comes out to paying $500 to $750 out of your pocket each year that you should not have to pay.
What are the potential savings I can have?
Since we are taxed at a rate of up to 1.25% on the total assessed value of our properties, this basically means that for every $10,000 of assessed value you are paying $100 more or less. Imagine the following:
Assessed Value $25,000 too high = you overpay by $250 per year
Assessed Value $50,000 too high = you overpay by $500 per year
Assessed Value $100,000 too high = you overpay by $1,000 per year
Assessed Value $150,000 too high = you overpay by $1,500 per year
Assessed Value $200,000 too high = you overpay by $2,000 per year
What are common reasons why people appeal their property taxes?
There are four basic reasons: 1) Decline in Value (If you believe the market value for your property has declined and is no longer as high as the assessed value); 2) Change in Ownership (If you believe the market value of your property is less than the assessed value based upon a change of ownership); 3) New Construction (If you believe that the market value of your property based upon completion of new construction is less than the assessed value); 4) Calamity Reassessment (If your property has experienced a misfortune or calamity that has decreased the market value).
How is it that you can stand before the appeals board? I thought we had to do that.
By law a home owner can have a specified agent fill out the Application for Changed Assessment by providing written permission to do so. When you hire me I will fill out the application for you and then request your signature on the application so that I can be your agent. Then sit back and I will handle the process for you.
When is the best time to hire you to do an assessment on my property?
The most relevant time is between May and the end of November for the most part (unless you are located in a county that has a deadline of September 15 for filing an appeal). Property Tax Appeal applications can be turned into the Assessor from July 2, 2009 through November 30, 2009. Our work can be done before then or within that time period.
What do I get for my money?
From my background and extensive work as a licensed real estate appraiser in the Sacramento area, I will act as a consultant on your behalf. I will do all the research, stand before the Appeals Board on your behalf, make charts and graphs, assess neighborhood trends, and put together convincing evidence for an accurate opinion of value – a true reflection of the real estate market. Moreover, I will help you understand the process of tax appeal so that you can know what to expect.
Why should I NOT fill out the “Decline in Value Reassessment Application (Prop. 8)?
This form is something you can fill out and give to the Sacramento County Office of the Assessor at 3701 Power Inn Road. The form asks you to provide two comparable properties which will then be reviewed by the Assessor. The Assessor states on the form “If you do not agree with our decision (on the value), you may have formal appeal rights with the Sacramento County Assessment Appeals Board”. This sounds good and all, but the problem is that you may very well never hear back from the Assessor (especially in light of how busy they are these days). Ultimately though, this form is basically meaningless and should therefore be avoided (in my opinion). Since the Sacramento County Assessment Appeals Board was set up to resolve differences of property value between the Assessor and property owners, they are the direct source to interact with when there are value issues to consider for your property. My suggestion to home owners is to bypass dealing with the Assessor and filling out their application and instead fill out the “Application for Changed Assessment” that is turned into the Sacramento County Appeals Board. This is the application that gets you what you are looking for – an opportunity to appeal your property taxes before the Appeals Board. The other form does NOT result in this opportunity.
What is an Appeals Board hearing like?
The board will first present their evidence for the assessed value of your property. They will give their reasons why they believe market value is at a certain level (the assessed level most likely). The burden of proof is on the Assessor to determine that the value is correct. You (or me as your agent) will then provide evidence for a lowered opinion of value (and provide copies for each board member too). It is important that the information is packaged and presented to the board in an Assessor-friendly manner that is easy to follow and makes sense based upon the true market trends of your neighborhood as it pertains to your property.
Can I hire you to do the work, but then stand before the Appeals Board myself?
Yes, if that is what you want, it is certainly fine by us. We will provide you what you need to do that. The most important thing is that you will definitely need to understand the information we compile for you and be able to ask questions, answer questions and defend your position.
Why don’t more home or commercial property owners appeal their property taxes?
Many property owners are unfamiliar with what to do and how to do it, so disputing property taxes and handling something new can feel intimidating. Or life gets busy and this whole process seems like a pain to deal with. This is exactly why some home owners opt to give their money to random out-of-town companies that have mailed them a letter. Many home owners do not know who to turn to.
Can you send me all of this information in a document by email?
Yes. Email us at info@SacramentoTaxAppeals.com and we’ll get this to you so that you can consider what you are going to do.
Do you service other areas too?
We cover a wide range of counties within the Greater Sacramento Region. We provide tax appeals for Sacramento County at the rates listed in the “pricing” section, but other outlying counties may require an additional drive fee due to additional time involved. Are rates are extremely reasonable and competitive.
What other services does your company offer beyond property tax appeals?
We provide residential real estate appraisals for clients and home owners for purchase, refinance, divorce, estate settlement, PMI removal, litigation, bankruptcy, FHA, USDA and more. We cover the following counties: Sacramento, Placer, Yolo, El Dorado, San Joaquin, Stanislaus, Merced, Solano, Yuba, Sutter and Nevada.
Can you help my family member or friend out in another local county?
Yes. Just have your family member or friend contact us (or give us their information and we will contact them). Keep in mind that the deadline for appealing property taxes in some other local counties is September 15 instead of November 30 (Sacramento County).
When is the deadline for appealing property taxes in 2009?
July 2 through November 30, 2009 is the assessment filing period for Sacramento County. Some of the other local counties have these same dates, but others have a filing deadline of September 15, 2009. Your property tax appeal will be based on the market value of your property as of January 1, 2009.
