Financial dilemma: lowering assessed home value

Name: Tom

Location: Van Nuys, CA

Problem: “I was a Care giver for my aunt (live-in) since 1991 also for my dad (her brother),” Tom writes. “I gave up all outside interests to make them a priority. They both passed and I inherited the house. Because I wasn’t a son or grandson, the taxes went from $600 year to $7,200. ” Now Tom can’t pay the taxes. How can he lower the assessed value of his inherited home to lower his tax bill?

Solution: Taxes are based on the assessed value of your home as determined by the local tax assessor. Tom has already appealed to his tax assessor, so his next step would be appealing to the county board of equalization. California has a guide to residential property assessment appeals. New York has one too, called a guide to fair assessments. Search online for one in your state.

If Tom’s house is, as he believes, being assessed at a higher market value than nearby homes of similar size and value, he should ask for “comps” from real estate broker showing the value of these surrounding properties. Having paperwork to back up your point always helps.

Tom might also consider calling the California Taxpayers’ Association, which aims to protect taxpayers from unnecessary taxes. Many states have similar organizations. To find them Google your state + taxpayers association.

What’s your financial dilemma? Email me at julia@bargainbabe.com. Or read last week’s financial dilemma about naming your own mortgage terms.