Property taxes are locked-in at the time you purchase your house and are based on the purchase price, and many troubled homeowners purchased their houses during the rise or at the height of the real estate market. 

Approximately 60% of homeowners in the U.S. are paying property taxes that are no longer commensurate with current property values. In light of this, you may want to get your property(ies) re-assessed, so you can pay less in property taxes every year.

If you suspect or know that your property value has dropped and you can provide proof and documentation that you are currently being over-assessed, you could save up to several thousand dollars a year, depending on the Tax Assessor’s value of your house.

Don’t worry. What the County appraises your house for has little to do with the fair market value of your house and what you can sell your house for in the future.

FYI - - There are some companies and law firms that are currently sending letters to homeowners offering this service for a fee. However, it’s such a simple process, most people can handle the tax reduction request on their own.

The following steps apply to primary residences as well as second homes and investment properties you may have.

Step 1: Get a desktop-type Property Appraisal from an experienced and certified Real Estate Appraiser whose license number begins with the designation ”AR.” This two-letter designation qualifies the Residential Appraiser at the highest level. Two other Appraisal designations: ”AT” for “Appraiser Trainee” and “AL” for Appraiser Licensee” indicate lower levels of experience. 

A desktop-type Appraisal is different from a full Appraisal in that 1) it is usually less expensive; and 2) the Appraiser determines value based on due diligence performed in his/her office versus an actual site visit. 

Many County Assessor’s offices do not require that an Appraisal of any kind accompany your Decline in Value Reassessment Application, the form that initiates the tax reassessment process. Instead, they require that you provide a couple of comparables. However, attaching a desktop-type Appraisal signed by a high-level Appraiser (which carried a lot of weight) may be the thing that ensures that your property is re-assessed at the lowest, most true and correct value. 

Step 2: Cross check the square footage for your lot and house (noted in your appraisal) against the County’s records to ensure that the county has accurate numbers.

Step 3: Take interior and exterior photographs of your house.

Step 4: Contact your County Assessors Office by Phone or via internet and apply for a property tax re-assessment. Here are two links for owners with properties located in the County of Los Angeles:

Frequently Asked Questions about property assessments: 

http://assessor.lacounty.gov/extranet/list/faqList.aspx?id=1 

Step 5: After you make copies for your file, hand-deliver the completed and executed application, photographs, and appraisal to your County Assessors office. Try to talk to someone in the office while you are there. Get name and contact information of person with whom you leave your package.

Step 6: Follow-up with your contact person regularly until you get your answer.

Step 7: Continue to pay your property taxes in-full and on-time while your application is under review by the County Assessors Office and you may want to write “Paid in Protest” on your check.