Real Estate Column: Scams Flourish When Times Are Tough

By Jennifer Rosdail

Is any offer that comes in by the mail, e-mail or starts with a cold call ever really a good idea?
I would generally say, “probably not.” But in these uncertain times it’s easier for people marketing valueless products to scare people into paying attention to them. There are lots of them out there, and many of them are not particularly harmful – just someone trying to make a small fee for something you can do yourself for free.

I have heard of loan modification scams and public document scams, but lately, the one I have been hearing about from clients is letters from companies claiming they can lower their property taxes by appealing the assessed value due to falling property values. The company has a quasi-governmental name that implies they are a California State agency, uses official legal size paper, and offers this “service” for between $75 and $200. If you have received one of these – please throw it in the trash!

First off, property taxes in California are collected at the county level. This means that there is an office in every county that establishes the value of your property and provides this value to the county tax collector. There is no statewide agency for this function, so right there it’s an obvious scam.

But why would this scam have such hooks? Because everyone has their property value on their mind a bit too much lately and sometimes things that prey on our worst fears are most likely to get our attention.

Property taxes for homeowners in California are based on the purchase price of the home. Each year, the assessed value rises a mere two percent due to Proposition 13 that passed in 1978. For most homeowners in California this has assured that their property tax basis remained far below the actual market value of their home. Some people call this “rent control for homeowners.” However, with the setbacks of the last 24 months, many in California have an assessed value that is far below their tax basis. If you feel this is true for you, you live in San Francisco, and want to pursue reassessment, you can find out more here where you can accomplish the whole process for free. It is not necessary to pay an intermediary or give your personal information to a questionable company to take care of this.

The good news for San Franciscans – especially in the Castro area - is that few of us would benefit much, at least so far, from property tax reassessment. Values here have held pretty well, declining from a peak in early 2008 of an estimated seven-to-ten percent. Also, it is my understanding that when a taxpayer successfully has their basis reduced, the county can reassess at a higher value at a later point if they feel the property has increased in value. In our special corner of the world, it may not prove to be worth the effort to attempt a reassessment for most homeowners.

If you have received unsolicited offers and are considering using one of them, I would encourage you to contact your Realtor to see what they think before making a potentially costly or dangerous step.

Jennifer Rosdail is a Realtor with Paragon Real Estate Group who specializes in residential real estate in central San Francisco. She can be reached at 415-269-4663 or Jennifer@rosdail.com. To hear more from Jennifer, read ClientsInTheKnow.com.

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