Here is what the Los Angeles County Assessor says about companies advertising lowering property taxes for homeowners:
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It has come to our attention that various private companies are doing mailings to property owners offering their services to pursue a reduction in their property taxes. These companies may charge hundreds of dollars to file for a reduction in value on behalf of the property owner. Solicitations of this type may not be illegal, but property owners should be aware that their property may have already been reviewed and the value reduced. There is no reason to pay for a review that has already been completed by the Assessor's Office. (FROM DAWN: THIS IS THE ISSUE... ALTHOUGH A REVIEW MAY HAVE BEEN DONE FROM THE ASSESSOR, THE REVIEW MAY BE INACCURATE FOR VARIOUS REASONS)
If a property was not reduced in this review and you believe the assessed value of the property shown on the 2007-08 tax bill is more than the fair market value as of January 1, 2008, you may file an application at any time through December 31, 2008. The Decline-In-Value form is simple to complete and readily available online or at one of our District Offices. We will review the application and if a reduction is warranted, the taxable value will be reduced. Please note that there is no charge to request a review.
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When clients call me, I state exactly what the county says above that many homeowners already recieved reductions and that many companies are trying to earn this type of business unfairly. Actually, I first look up the property on public data, information that although public, is not usually accessible to homeowners. I find out what they are paying and then look up comparables (also something that a homeowner would not have access to). If it looks like there is a significant difference between what the county says the property is worth, and comparables from the first part of this year, than I inform the homeowner. Only then, when the homeowners is informed about the situation, do they make the decision to hire me for a flat $100 to provide the form (which is readily accessible on the county website but many homeowners just don't want to take the time to retrieve)and comparables. As an appraiser, I have to pay for public data informaion, MLS information and my time to do the research. It is totally up to the homeowner if they want to try or not. I feel that this fee is fair and I am earning it honestly. Can't tell you how many times in the past few months that I had to turn down appraisal jobs because, no matter how desperate the homeowner is, the value is just not what they need to refi. Or telling homeowners that the assessed value looks accurate. I actually researched other companies trying to lower taxes for homeowners, one of which soemone in this group recommended and they actually ask for a percentage of what the homeowner saves. I think that is completely wrong!
Here is an example of the work I do. My client bought a house in May of 2006 for $650,000. Assessor sent a letter saying that the value should be $575,000. After doing all my research, I realized that properties in that area were selling during the first quarter of the year for $475,000 to $495,000. I was able to provide comparables to the county and they reduced the taxes further.
When the county assessor lowers values, they are looking at a large geographic area, usually referred to as a Mass Appraisal. They don't look at a particular neighborhood in a community in a city in a county specifically. So, it is possible, and maybe probable that the county's letter and assessment of a property is inaccurate. This was the case with the above mentioned client. Think values on the south side of Ventura Boulevard versus the north. I think that appraisers are probably the best people to look into this for a homeowner. Under USPAP, we appraisers have to follow a strict code of ethics.
As you know, homeowners could do all this research themselves. I do not know any homeowner, with the exception of realtors, escrow officers or lenders who actually know how to look up retroactive comparables, let alone understand what a comparable is. Why do you think it takes 2000-2500 practice hours and several large state exams to become an appraiser? This is what we do everyday.
Homeowners have to be warned about people doing immoral things. As a Certified Residential Real Estate Appraiser, I look into values of homes all day long and this only seems like a natural road to take given the way the mortgage and real estate market is today.
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