How Does Proposition 8 Work?
If the market value of your property on January 1 is lower than its current assessed value, you may qualify for a temporary reduction in your assessed value.
For example:
- Current assessed value: $1,200,000
- Current market value: $1,000,000
- Potential reduction: $200,000
Depending on your tax rate, this could translate into meaningful tax savings.
5 Signs Your Property May Be Overassessed
Property taxes are based on assessed values, but assessments do not always reflect current market conditions.
Here are five warning signs that your property may be overassessed.
1. Your Neighbors' Homes Are Selling for Less
Recent sales are often the strongest indicator of market value.
If similar homes in your neighborhood are selling for significantly less than your assessed value, it may be worth investigating whether your assessment is too high.
2. You Purchased During a Competitive Market
Many homeowners who purchased during the heightened real estate activity of 2021–2023 paid prices that may no longer reflect today's market conditions.
If values in your area have softened since your purchase, a review may be warranted.
3. Your Assessment Is Higher Than Estimated Market Value
Many homeowners never compare their county assessment to current market estimates.
If the assessment appears significantly higher than current market indications, further analysis may be beneficial.
4. Interest Rate Increases Have Impacted Local Prices
Higher mortgage rates can reduce buyer demand and place downward pressure on property values.
Certain neighborhoods have experienced value declines as affordability challenges have increased.
5. You Have Never Reviewed Your Assessment
Many homeowners assume their assessment is automatically correct.
A periodic review can identify situations where a temporary reduction may be justified.
Next Steps
If any of these signs apply to your property, you may benefit from a professional review.
Fair Tax Assessment can evaluate whether a property tax reduction opportunity exists and help San Diego County homeowners with their property tax appeals to obtain tax relief.