People typically confuse appraisal prices with assessment prices. As a real estate owner or potential buyer, it is important to understand how they differ (hint: they are almost totally unrelated!). This article will explore San Jose CA appraisal versus assessment prices. What Are Assessment Prices California counties charge a property tax on homes. The sum is based on a pre-determined rate multiplied by the assessed value of a property. Assessments are used specifically for levying taxes and are not related to the current market value. Thanks to California’s proposition 13, the initial assessed value will be set as fair market value at the time a property changes hands, and can rise a maximum of 2% per year after that, but can never exceed fair market value. There may be additional assessments on your tax statement, but the base rate will always be 1% of assessed value. Assessed value may be increased if you make improvements to your house (e.g. an addition) and the tax assessor will augment your assessed value by just the amount of value he deems you’ve just added to your home. What Are Appraisal Prices An appraisal is an analysis of the market value of a home by a licensed (and hopefully skilled) appraiser implementing specific valuation methodology. When you go to get a loan on a home, your bank will hire an appraiser to confirm that the value of a property meets or exceeds the dollar value they are lending. It is a part of their due diligence given that they will hold a significant financial burden until you pay off the loan. … Read More
I should have just sat there and watched as my hard-earned dollars evaporated, sucked it up, been a man, and lost all that cash, the price to pay for participating in our capitalist system. … So let me assure you – if you want to buy a house in Santa Cruz, and you have decent credit (at least a 580 FICO Score to qualify for an FHA loan, I believe) and you have the debt-to-income ratios required by the guidelines. … Mind you, the median price these days in the county is $585,000 (as of August), so it’s getting to the point where you can actually buy a habitable structure in a somewhat central location for that kind of bread. … That would leave you with a whopping loan of $482,500 and payments (all-in, including principal, interest, property tax, and insurance) of about $3,500 a month (roughly, approximately – and that’s before your considerable mortgage interest tax deduction ).
I plan to write a book that’s a cross between Catcher in the Rye and Zen and the Art of Motorcycle Maintenance . … Speaking of looking grim, here are some other signs of the apocalypse . [From Record numbers won’t pay property tax bill – Santa Cruz Sentinel ] A near record number of homeowners likely won’t pay property taxes by the April 10 deadline, another sign of just how tight things have become. … Only thing is, I hear that you if you want to work out a deed in lieu of foreclosure with your lender, they won’t work with you if you have unpaid property tax. … There has been a precipitous drop of new blood coming into a industry that is clearly hemorrhaging: [From Number of real estate agents starts to shrink ] Just 1,324 people took the real estate salesperson exam in January, down from 8,765 a year earlier and 14,397 two years ago, according to the Department of Real Estate.
So, for example, if you purchase a $500,000 property, the assessed value will be $500,000 and the property tax will be 1% of that, or $5,000 per year.
…Sometimes you may see the third set of numbers with a leading “0” – for example, the MLS always lists Santa Cruz parcels with this leading 0 in the third set of numbers.
…When you do, you can see that the “General Tax Rate” is that 1% I was talking about, and then there is a long list of additional taxes, mostly school bonds.
… Using this web site, it is very easy to know how much property tax you will be charged each year for a property that you purchase here in Santa Cruz county.