One thing about the real estate market that is consistent: it will always have its ups and downs! Living within that reality can be a challenge indeed, but it's always important to work within the conditions at hand to maximize potential, even in what appears to be the worst of times. Such is the case with assessed property values and the subsequent property taxes.
San Francisco homeowners are blitzing City Hall with informal requests to reduce their property values in light of the current market conditions, a request whose deadline is today, with the deadline for formal filing set for September 15th. The rate of inquiry is three times that of last year's. In spite of falling home prices, the city's overall property value has increased by 8.7 percent on average in the past year. The assessed value of homes continues to increase predominantly due to Proposition 13, which strongly limits the amount assessors can charge in property taxes. Hence, while home prices seem to decline, they are still well above the assessed value in many cases. In short, it may be time for an adjustment to the assessed value, saving a homeowner considerably in taxes.
According to Proposition 8, the 1978 voter-generated initiative, a reduction in home value is allowed in accordance with dips in market values. The bottom line is this: Anyone who has bought property in the past few years should expect the assessed value to decrease. Anyone interested in paying less property tax should file for a reduction. This is making the most out of the dip in the housing market!