Tony's Big Bear REO Blog

Are You Paying Too Much In Property Tax?

Previosly Posted On Tony's Big Bear REO Blog

You bought your week end get a way in Big Bear in 2006 and sat helplessly as your property taxes were adjusted to reflect the new value of the property.  I can't think of one of my clients who were thrilled when they got the supplemental tax bill.  Because of Proposition 13, the state is unable to increase taxes until the property sells.  Once the property changes ownership, the new owner is taxed off of the assessed value of the property.  Up until recently, that meant your taxes were going up as home values in Big Bear were up.  With the increase of bank owned, REO properties coming on the market and the decrease of home values, property taxes also have taken a dive.

In December of 2007 I sold a bank owned, REO property for $60,000 less than the previous owner paid for it.  The new home owner had to show the county assessor's office that the value of the home had in fact decreased before he would adjust the property taxes down to what he paid for it.

As most, if not all of California is in a declining real estate market, the county assessor's offices are being inundated with requests from home owners to reduce their property taxes.  If you feel that you're paying too much in your property taxes, simply contact your county tax assessor office and request a reduction. 

Requesting a reduction is as easy as logging on to your county tax assessor site, pull up the form and simply fill it out.  Once you have filled the form out, simply hit the submit button and your done.  San Bernardino  County has a one page form that you can fill out and submit on line. The process in Los Angeles and Riverside counties are very similar to San Bernardino.  The site for San Diego County is also set up to handle the decline in property tax request

How Can A Seller Compete With the Bank Owned, REO Listing

As a Realtor in Big Bear Lake, I have the opportunity to meet with a number of people, some Buyers and some Sellers.  In the five years that I've been selling Real Estate in Big Bear, I've gone from a very strong seller's market to the current Buyer's market.  The days of taking an overpriced listing and simply waiting for the market to catch up with the price have fallen by the way side.   The MOST IMPORTANT FACTOR in 2009 that a seller must understand if he or she is going to be successful in selling a Big Bear property is PRICE!

Currently, there are 949 properties for sale in the Big Bear Valley.  140 of these homes are Short Sales and Bank Owned, REO properties.  The Bank Owned, REO and Short Sale properties account for 15% of the current inventory, yet the account for 70% of the sales.  Did you get that?  70% of all property selling in Big Bear today are Bank Owned, REO and Short sale properties!

What does this mean to the home owner who wants to sell his home?  Simply put, the home owner who wants to sell in today's market MUST price his property so that it competes with the bank owned, REO property.  If he doesn't understand this basic concept, he won't have any success in selling his home.

Just for the fun of it, below are the top excuses sellers have given me over the years for why they won't reduce the price.

"My house is worth it." Well, according to who? Are you, the seller the highest bidder on your own home?Usually, this statement is followed by a shopping list of items that have been added to the house: hardwood floors, 9-foot ceilings, new appliances, upgraded bath/kitchen, you name it. Yeah, your house is unique, just like everybody else's. The reality is while your house may have all those neat amenities, so do the other dozen homes in competition with yours.

"It's a great looking house." It better look great if it's going to beat out the competition. It better look great if you're going to get your price for it.  Location, price and condition will always be a factor in any market. It may look great, but looks have nothing to do with real value. When you start thinking that your house pales all the competition it means one thing you probably haven't seen other houses like yours on the market.

"I have to get this much or I can't sell." Oh, I really like this one. What a seller needs doesn't matter to the buyer. The buyer is looking for as much value in a community of high-priced houses. In the DC area, the average price lingers around $550,000. For that price, many buyers want the house to look good, have plenty of amenities and be connected with a realistic seller who is motivated.

"If I can't get my price, then I'll take it off the market." My question to that statement is: "Then why are you on the market to begin with?" Look at what it's going to take to sell your home and realize your true goal -- getting that next property. Looking at only what your house will draw is too short sighted. The real question is, "What kind of deal can I get on the next house?"