The Must-Have Evidence to Win Your SF Tax Appeal!
The Must-Have Evidence to Win Your SF Tax Appeal!
Hey there, San Francisco homeowners! If you've been watching your property value do a not-so-fun rollercoaster ride lately, you're not alone. As someone who's been in the trenches of SF property tax appeals for years, I've seen it all. Let's chat about how to make sure you're not overpaying on your property taxes in this wild market.
The SF Real Estate Market: What a Ride!
Remember when it seemed like SF home prices could only go up? Yeah, those were the days. But here we are in 2024, and things have... changed. Tech layoffs, remote work, crimes, and a shift in urban living preferences have all taken their toll on our beloved city's real estate market.
Why Bother with a Property Tax Appeal?
The thought of taking on City Hall might seem daunting. But here's the deal: if your property is overassessed, you're literally leaving money on the table every year. And in San Francisco, that can be a few thousand dollars a year.
Understanding Your Current Assessment
First things first, you likely have received a letter of notification from the assessor-recorder's office. Remember, thanks to good ol' Prop 13, your assessed value isn't necessarily what you paid for your condo. It's either the purchase price (if you bought recently) or the base year value plus up to 2% annual increases.
The Evidence You Need: Your Ticket to Tax Relief
1. Comparable Sales
Nothing speaks louder than factural data on what similar condos are actually selling for. Here's how to nail this:
Look for sales as close to valuation date (typically Jan 1 of the tax year) as possible. Comparable sales dated more than 90 days after the valuation date cannot be dmitted into evidence.
Location, location, location: Prioritize condos in your immediate neighborhood. Ideally, find sales in your own building or on the same block. The closer, the better!
Property type match: Ensure you're comparing apples to apples. If you own a condo, use other condos as comps, not single-family homes or townhouses, vice versa.
Size matters: Look for units closer to your square footage. A 500 sq ft studio isn't comparable to your 1,500 sq ft two-bedroom.
Bedroom and bathroom count: Match these as closely as possible. A 2-bed/2-bath will typically sell for more than a 2-bed/1-bath, even with similar square footage.
Age and condition: Find properties built around similar years as yours. If your building is from the 1980s, a comp in a brand new luxury high-rise won't cut it.
Amenities and features: Consider parking (a huge deal in SF!), storage, views, building amenities like gyms or roof decks (shared or private?), and unit-specific features like upgraded kitchens or private outdoor space.
Floor level: For high-rise condos, compare units on similar floors. A 3rd-floor unit will likely sell for less than an identical 30th-floor unit with sweeping views.
Arms-length open market transactions: This is crucial! Only use sales that are true "arms-length" transactions. This means the buyer and seller acted in their own self-interest and weren't under any undue pressure. Avoid using:
- Foreclosures or short sales
- Sales between family members or business partners
- Units sold at auction
- Any sale where the price might have been influenced by factors other than fair market value
Building characteristics: Look at the overall style, height, and number of units in the building. A unit in a 4-unit Victorian-era building isn't directly comparable to one in a 200-unit modern high-rise.
Views: In San Francisco, views can dramatically impact value. Be sure to compare units with similar view quality, whether it's the Bay, downtown skyline, or your neighbor's brick wall.
Pro tip: Create a simple spreadsheet comparing your condo to at least 3-5 qualifying sales. Include all these factors: address, sale date, price, square footage, bed/bath count, floor level, parking, views, and any notable features or amenities. Also, note how you verified that each sale was an arms-length transaction. This visual aid can be super persuasive in your appeal.
Remember, the goal is to find the most similar properties possible that sold in true market conditions. No comp will be perfect, but the closer you can get on all these factors, the stronger your case will be.
2. Market Trend Analysis: Paint the Big Picture
Show the appeals board you've done your homework on the broader market trends:
- Use reputable sources for neighborhood-specific data
- For comps you selected, note their days-on-market and if they were sold at a discount from their listing prices
3. The Professional Appraisal: When to Bring in the Big Guns
For high-value properties or complex cases, a professional appraisal could also help. Generally, submission of a formal appraisal is allowed, provided the appeals board deems it reliable. You should be aware that the appeals board may require the person who prepared the report or document be present at your hearing as well. Depositions are not admissible and may not be considered for any purpose by the appeals board.
Building Your Case: Putting It All Together
Now that you've gathered your evidence, it's time to make it shine:
- Create a clear, concise summary of why you think your assessment is too high
- Organize your comparable sales data, condition documentation, and market analysis into a neat package
- Practice explaining your case in concise and precise terms
Navigating the SF Assessment Appeals Process
Alright, you've got your evidence locked and loaded. Here's what you need to know about the process:
- Filing deadline: For most appeals, you need to file between early July and mid-September. Check the specific date on your assessment notification letter.
- Be prepared to wait: The appeals process can take several months.
- The hearing: Be polite, stick to the facts, and let your evidence do the talking.
Unique SF Condo Considerations
San Francisco's condo market has some quirks. Keep these in mind:
- Views matter: If you're in a high-rise, a difference of a few floors can significantly impact value
- Parking is important: Having (or not having) a parking space can make a difference
- Building amenities: From doormen to roof decks, these features affect value and should be considered in your comps
The Payoff: Why It's Worth the Effort
I know this process can seem like a hassle. But let me tell you, the saving thousands of dollars a year would be worth the effort, especially your assessment will become the basis of your subsequent years' assessment as well. It will add up over time.
Wrapping It Up: You've Got This!
Remember, the goal here isn't to game the system. It's about making sure you're paying your fair share – no more, no less. With the right evidence and a bit of preparation, you've got a solid shot at winning your appeal.
So gather those comps, put together the analyses, and your future self (and your bank account) will thank you.