Question about property tax

C

Chuck_IHB

New member
I've noticed a few homes on Redfin that have a property tax base that is lower than the last purchase price of a property. 31568 Eagle Rock Way in Laguna Beach, for example, is listed for sale for $1.075 million, was last sold in 2006 for $1.095 million, but it has a property tax base of only $816,500. It seems to me that the owners must have applied for a re-assessment and reduction in property tax based on the fact that that market declined after they bought it in 2006. Is there any other reason that the tax base coud be this low?



If this is true, it would be interesting to ask the sellers why they think the house is worth more now than when they applied for the re-assessment just a few years ago!
 
[quote author="Chuck" date=1254185198]I've noticed a few homes on Redfin that have a property tax base that is lower than the last purchase price of a property. 31568 Eagle Rock Way in Laguna Beach, for example, is listed for sale for $1.075 million, was last sold in 2006 for $1.095 million, but it has a property tax base of only $816,500. It seems to me that the owners must have applied for a re-assessment and reduction in property tax based on the fact that that market declined after they bought it in 2006. Is there any other reason that the tax base coud be this low?



If this is true, it would be interesting to ask the sellers why they think the house is worth more now than when they applied for the re-assessment just a few years ago!</blockquote>
They want the best of both worlds....lower assessed value which translates to a lower property tax bill but in their mind the true value of their home is still there. Gotta love it!
 
Yes, that seems to be the case. The sellers think the value is $816k, the county thinks the value is $816k, but they want a buyer to pay $1.1 million! Sounds fair!
 
Sometimes the county will do a re-evaulation even without the homeowner requesting one. In any case, if it does sell for the WTF asking price, the county will move the value up to the sale price.
 
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