Real Estate Articles
REALTOR®: Santa Clara Assessor says Silicon Valley Market “Always Rebounds”
Santa Clara County Assessor Larry Stone describes the current market as "rather a drastic market" but tells Realtors he is hopeful.
"We've been through the downturns, but somehow the market always rebounds," Stone said. "
Stone mentioned some of the problems the county is facing: foreclosures are up; even with the increase in conforming loan limits, it is still difficult to get a loan with higher and stricter underwriting standards; purchase transactions have declined by 50 percent; and new construction is down as well. But Stone assures Realtors, Santa Clara County's problems are not near to the extent we see in other counties across the state.
Hardest hit these days are the condo and townhome markets, and Gilroy, Morgan Hill, Milpitas, and East San Jose, which he described as "blood baths." Stone said sales and values of single family homes in Los Altos, Los Altos Hills, Palo Alto, Cupertino, South Sunnyvale, Los Gatos and Saratoga are "holding real well." He said he has no doubt that the quality of the school districts in these communities is making the impact.
Stone indicated while total assessed value for Santa Clara County is still on the plus side, it is gradually declining for the third year in a row. The roll in July closed at $303 billion, which was an increase of 6.98 percent for 2008. The roll increased 8.2 percent in 2007, and 9.6 percent in 2006.
"These declines will further decrease revenues, which fund our public education," Stone warned.
Stone cautioned Realtors about certain rules that need to be followed in accordance to property tax laws. For instance, if a commission is paid out of escrow, it will be included as part of the fair market value of the property.
Stone explained Propositions 58, 193, 60 and 90 and touch on legal exclusions from re-appraisal. He emphasized if homeowners are considering using Proposition 60 or 90, rules regarding time frame and sales price limits need to be followed to the letter.
"Be careful," he warned. "I've seen tragic situations occur when you try to cut it too close. If it's one dollar over the fair market value, I can't help you."
If either spouse is over age 55 when the old home is sold, Proposition 60 allows replacement of a primary residence with a new home of equal or lesser value within the same county and transfer of the Prop 13 assessed valuation from the old home to the new property. Proposition 90 allows counties to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive home.
Stone said his office is only one of 10 in the state that sends out a notice informing homeowners of their property taxes six weeks before the roll closes on July 1. This saves a lot of contentiousness and cost, and gives homeowners a chance to appeal.
Homeowners may submit comps, appraisals, and any additional information that will help make your case.
Stone said, "The more communication the owner can give to us, the better."
Homeowners have between July 2 and September 15 to file an appeal regarding their property tax assessment.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.