Two properties we own, a triplex in Los Feliz and a 5-unit in Silver Lake, are now worth less than we paid for them (by a few hundred grand each), thanks to higher rates and a very soft multifamily market.

 

Boo-hoo; I’m not losing sleep. I got decent terms when I bought; they are both heirloom-quality buildings, and both cash-flow decently.

 

But there is one thing that makes me feel better, which you should look into if you bought in the last few years and if you think your home value may have decreased.

 

You can apply to have your property taxes reduced.

 

 

Thanks to 1978’s Prop 8, passed only months after voters froze property taxes (except for 2% annual increases), you can actually get your property taxes reduced with a simple application, potentially saving you thousands of dollars.

 

A couple of things to note:

And if the market recovers, the assessor can raise your rate back to its previous level. But don’t worry – it’ll never go above where it would have been without the reduction.

 

 

There’s a bit of paperwork involved. 

 

Try AI first, but if you want to outsource it, there are plenty of outfits (specialty law firms, actually) that will do it for you for 35% of your savings, with no charge up front and nothing if you’re not approved.

 

There are websites, too, trying to scale it – I’ve had zero luck with one called Onwell. I like the 35% lawyers because they will actually appeal the appeal if needed and do a Zoom hearing on your behalf.

 

So I’ve found they are worth it. But feel free to send recommendations. I’m sure AI is changing the game.

 

If you think your house has gone down in value and is worth less than the current assessment, go ahead and apply here before November 30.

 

 

And if you feel like reducing your taxes might be unfair, don’t worry, the county pulls in $27bil each year, and besides, the big guys are doing it.

 

As mentioned in my fave ‘zine, The Eastside Rag, and covered in the Hollywood Reporter, Universal Studios, finding a silver lining in cratering studio values, “argued in a 2023 appeal that the county had overvalued its 400-acre, 30-stage lot by nearly $900 million, asking that the assessment be cut from $951 million to $60 million.”

 

Go ahead and apply, and good luck.

       -Brock

 

📈📉🤔  How Higher Mortgage Rates Have Historically Affected Home Prices. Surprise: Changes in Mortgage Interest Rates and Changes in Home Prices are Weakly Correlated.

❤️❤️  Zillow looked at hundreds of home features to determine whether they help a home sell for more money compared to similar homes, or if they just get more clicks. The specific things that help a home sell versus the ones that don’t might surprise you.

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