Paul's Appraisal Blog

   I got a call the other day from a guy that was a little upset. He had just bought some property in Riverside county for $19,000 or so. When he got the tax bill, it was assessed at $38,000 and his taxes were about double what he thought they would be.

    It turns out that when you buy a property, you are taxed on what the assessor thinks it's worth, not what you paid on it. Many times, people get great deals either through bank-owned or short sales. They need to understand that if these properties were normal sales, with the appropriate amount of marketing exposure, they would sell for significantly more.

    This is why someone might buy a home for, say, $170,000, but be taxed on $225,000.  When the market was hot, the sales price was the market value. Now, market value is a little trickier to find, with all of the distressed sales going on.

    So, when you buy your house, don't be surprised if your tax bill is for more than what you bought it for. If you think there is a mistake, you can challenge it, but I think the assessor is pretty conservative in value.

    If you have a question, go ahead and shoot me an email at paulmcewen@cox.net or call me at 760-525-2742.

Often, when someone needs an appraisal for a non-mortgage use (divorce, estate settlement, tax purposes), they are unaware that there are different appraisal products that can serve their needs. These other products have the same credibility as a full appraisal, yet can be cheaper. I recently did an appraisal for a couple that was filing bankruptcy. They were tight on money and shopping around for the best price on an appraisal. They had quotes from $300-$350. After talking with them, I told them that they could get an appraisal without measuring the house, and no sketch for about $75-$100 cheaper. The results are just as reliable, assuming that the house has not been modified and that public records are correct. They contacted their lawyer and confirmed that this type of appraisal was adequate.

So, next time you need an appraisal, ask to see if there might be a cheaper alternative. I, personally, will always try to find the most economical product for the client. I know what it's like on the other end when I'm the one that has to pay. If you need an appraisal or more information, feel free to drop me a line at paulmcewen@cosx.net  or call me at 760-525-2742.