Real estate appraisal California Property Tax Relationship
What is the relationship of real estate appraisal to California property taxes?
First of all lets start of by defining real estate appraisal.
Real estate appraisal is the method by which we value real property. Some other terms used are property or land valuation.
Real estate appraisal seeks to determine a property’s market value. Real estate transactions don’t occur as often as transactions with other products and services. People tend to hold onto their property for quite a while, often decades, before they sell. In addition, each real estate property—be it commercial property, a home, or land—has many differentiating factors. Location, size, and amenities are just a few of them. The complexity of determining property value—real estate appraisal—calls for a specialized professional.
Enter the Certified Real Estate Appraiser.
An appraiser provides a report on a property’s current market value based on numerous factors. The determined real estate value can be the basis of mortgage loans, estate settlement, and our favorite—property taxes.
In California, the state requires that appraisals be executed by certified Real Estate Appraisers. The appraiser’s opinion is based on a fair market value that he or she determines. The real estate appraisal is also based on the best use of the real property.
But what does real estate appraisal have to do with property taxes?
Real estate appraisal uses the same tools that California County Assessors use to determine real estate values. These include comparative market data, property history, and three common approaches to valuation—sales comparison, cost approach, and income approach.
Therefor having someone with knowledge of real estate appraisal can be a real benefit in determining the value of your property and making a case for lowering your property taxes.
But can a real estate appraiser help me with my property taxes for a contingent fee?
No. An appraisal is an unbiased opinion of value for which contingent fees are prohibited. For property tax help you’ll need a Certified Tax Agent.
What is a Tax Agent?
Certified (Property) Tax Agents offer valuation services. They make a case for your assessment appeal using data and expertise, hopefully lowering your property taxes significantly. Tax Appeal Consultants does this, specializing in assessment appeals advocacy consulting. So we are acting as tax agents, not appraisers.
However, because we are both Certified Tax Agents and an alliance of Certified Real Estate Appraisers we believe we can offer clients the best of both worlds—expertise in valuation as well as in-depth knowledge of property tax law and the assessment appeals processes in California.