Challenge Real Estate Assessment to Reduce Property Tax

Posted by: Nader Malek  :  Category: Los Angeles Realty, Orange County Appraisal, Realty LA

In all investment opportunities, investing in real estate might be the best form of all. Your money in the bank will not grow as fast compared to real estate property sales and increase in value. Cars depreciate year by year while real estate properties increase in value yearly as long as the economy is thriving. Even in poor economy, some real estate properties remained strong in the market especially in high-end locations such as Orange County in California. Stocks come and go while real estate investments are here to stay. Houses, vacant lots, apartments and buildings are tangible and can be sold instantly with a large profit, unlike stocks and bonds. The sale of a real estate property can make you liquid in a matter of months and even a few days.

One great issue about real estate is property taxes. The government does not mean to exhort money from the people but they can legally do so by means of the imposing taxes. Taxes required to be paid concerning real estate is not something you should ignore. There was a time, during the economic breakdown of 2008 to 2010 when the real estate industry was included in the slump. Properties are decreasing in value for most of the locations. The weird thing is that in some areas, property taxes are still going up. There is no explanation for this because the logical thing to happen is for taxes to go down as well. For this, challenging real estate assessment became popular. Why would people just sit down and pay for taxes that is not due to them?

Challenging real estate assessment is not that easy to do. You first have to know the background of the assessing process. You should know how your taxes are calculated so you can compute it yourself and analyze where the difference lies. Here is a simple explanation to get you through.

You can get your real estate tax by multiplying the assessed value of your home by the tax rate. Note that tax rates differ from one state to the next. The tax rate in Orange County is different from that to New York so better get your facts straight. It is the government who sets the tax rate so you cannot change or challenge it. However, you can challenge the assessment of your home.

If you think that your property has decreased in value due to unforeseen events such as economic breakdown and even natural disasters in your area, you are free to have a licensed appraiser re-assess your property. You can also do your due diligence by collecting appraisal report from similar properties in your area and show this to the appraiser. This will prove that the value of your home has significantly decreased so your property tax should decrease accordingly.

Do not be afraid of challenging the authorities especially if you know you are on the right side. They can squeeze more money out of your pocket if you let them so do not be outsmarted by them. Know your rights and know how your property is valuated so that you can pay the appropriate taxes due.

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