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Residential Income

VALUE • SANTA MONICA RENT CONTROL • LOS ANGELES RENT CONTROL • IMPORTANT TAX INFORMATION TO CONSIDER • PREPARING YOUR BUILDING FOR SALE • UNITS SOLD BY STEVE SAWAII

VALUE

Factors that influence the sale of your property…

Market conditions
Location
Competition
Conditions of your property
Zoning/Number of Units
Unit Mix
Terms offered
Ease of showing
Seller’s motivation
Marketing and promotion
Broker representation
Schools
Interest rates and financing availability
And most importantly, PRICE

The price of your property is determined by you with the help of your agent and a comparative market analysis.

A property’s market value is the point at which a seller will sell and a buyer will buy without undue pressure. This point is determined by comparing your property to others with similar features that are currently for sale. This market analysis establishes an accurate estimate of value under current market conditions and provides a solid basis for pricing and expectations.

Steve Sawaii is happy to assist in helping you determine a fair market value for your property. His expertise and experience is invaluable in ensuring the most rewarding outcome for you. In addition, a comparative market analysis is complimentary so just call or email and we will gladly set-up an appointment.

Santa Monica Rent Control

www.santa-monica.org/rentcontrol

Los Angeles Rent Control

www.lacity.org/lahd/ten_land.htm

Important Tax Information to Consider

What does the Assessor do?

Locate all taxable property in the County and identify the ownership.
Establish a taxable value for all property subject to property taxation.
Complete an assessment roll showing the assessed values of all property.
Apply all legal exemptions.

Real Property Assessments

The California Constitution requires that all property be taxed, unless otherwise exempted under the California Constitution or United States Constitution. Article X111-A of the California Constitution requires that real property be reappraised only when such property undergoes a change in ownership or has new construction (per Proposition 13).

The assessment roll, and tax bills, show land values and improvement values. “Improvements” include buildings or anything of a structural nature (such as swimming pools, paving, etc.) When you have an “improvement” value, it doesn’t usually mean that you have recently “improved” our property.

Proposition 13

Proposition 13, passed by the voters in June 1978, substantially changed the taxation of real property in California. As a result of this Constitutional Amendment:

The general tax levy for all agencies cannot exceed 1% of the property’s assessed value, except for additional taxes for bonded indebtedness. In addition, agencies may levy direct assessment taxes to pay for services such as lighting maintenance, weed abatement, etc. The average tax rate in approximately 1.25%.
Real property is reappraised only when:

A change in ownership occurs; or
New construction is completed; or
New construction is partially completed on the lien date (March 1st).

Except for these three instances, real property assessments cannot be increased by more than 2% annually, regardless of the rate of inflation.

Change-In-Ownership Reappraisals
When a transfer occurs, the Assessor receives a copy of the deed and determines whether a reappraisal is required under State law. If it is required, an appraisal is made to determine the new market value of the property. The property owner is then notified of the new assessment. The property owner has the right to appeal the value, if he/she does not agree with it.

The transfer of property between husband and wife does not cause a reappraisal for property tax purposes. This includes transfers resulting from divorce or death. Also, the addition of joint tenants, whether related or not, does not result in reappraisal. There are other exclusions, which are discussed later.

New Construction Appraisals

Copies of all building permits are sent to the Assessor’s Office by the cities and County. New buildings, additions, and structures require an appraisal. Structural repairs, replacement, or maintenance are not appraisable in most situations.

We appraise new construction and add it to the existing improvement assessed value. Thereafter, the new assessed value does not change except for the annual 2% trend. The property owner is notified of the new assessment and has the right to appeal the value if he/she disagrees with it.

Supplemental Assessments – SB 813

State law requires the Assessor to reappraise property immediately after change in ownership or completion of new construction. The supplemental assessment reflects the difference between the new value and the old value. The Auditor-Controller calculates the supplemental property tax, and prorates it, based upon the number of months remaining in the current fiscal year. The fiscal year runs from July 1st through June 30th.

A change in ownership or new construction completion which occurs between March 1 and May 31 results in two supplemental assessments and two supplemental tax bills. The first supplemental bill is for the remainder of the current fiscal year. The second supplemental bill is for the forthcoming fiscal year.

Notices of Assessed Value Change are mailed to property owners before supplemental tax bills are issued.

Remember that supplemental tax bills are in addition to the regular annual tax bills.

Exemptions, Exclusions, and Tax Relief

Homeowners’ Exemption
If you own a home and occupy it as your principal place of residence on March 1st, you may apply for an exemption of $7000 off of your assessed value. New property owners will automatically receive an exemption application. A Homeowner’s Exemption will also apply to the supplemental assessment, if the prior owner did not claim the exemption. Call (213) 974-3211.

Disabled Veterans’ Exemption
If you are a California veteran who is rated 100% disabled, blind, or a paraplegic due to a service-connected disability (or if you are the unmarried widow of such a veteran), you may be eligible for an exemption of up to $150,000 off of the assessed value of your home. Call (213) 974-3211.

Institutional Exemptions
Property used exclusively for a church, or nonprofit college, cemetery, museum, school, or library, may qualify for an exemption. Properties owned and used exclusively by nonprofit religious, charitable, scientific, or hospital corporations are also eligible. Call (213) 974-3481.

Builders Exclusion
Certain new construction may be excluded from supplemental assessment. The property must be for sale and the builder must file the necessary claim form with the Assessor’s Office prior to or within 30 days from the start of construction. If the form is not filed, a supplemental assessment is sent to the builder upon completion of construction. Call (213) 974-3481.

Disaster Relief
If a major calamity, such as fire or flooding, damages or destroys your property, you may be eligible for property tax relief. In such cases, the Assessor’s Office will immediately reappraise the property to reflect its damaged condition. In addition, when you rebuild it in a like or similar manner, the property will retain its pre-damage value for tax purposes.

To qualify for property tax relief, you must file a Misfortune or Calamity Claim with the Assessor’s Office within 60 days from the date the property was damaged or destroyed. In addition, the loss must exceed $5000 of current market value.

Eminent Domain – Prop 3
State law provides that if a government agency acquires property through condemnation, owners may have the right to retain that property’s existing assessed value by transferring it to a replacement property. You must file a claim.

Decline in Value – Prop 8
If the actual current market value is less than the assessment the Assessor’s Office may reduce the assessed value of any real property.

Parent and Child Exclusion – Prop 58
The transfer of real property between parents and children may be excluded from reappraisal for property tax purposes. You must file a claim.

Severely and Permanently Disabled Exclusion – Prop 110
A severely and permanently disabled person, who buys a new home, may be able to have his/her old assessed value transferred to the new home. You must file a claim.

Proposition 60/90

www.equitytitle.com/metroportal/EquityTitle/flyers/Tax_Related/
Proposition_60%20_90.pdf

Preparing Your Building For Sale

A building that sparkles on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained.

Enhance the exterior by:

Keep lawn edged, cut and watered regularly
Trim hedges, weed lawns and flowerbeds, and prune trees regularly
Check the foundation, steps, walkways, walls and patios for cracks and crumbling
Inspect doors and windows for peeling paint
Clean and align gutters
Inspect and clean the fireplace
Repair and replace loose or damaged roof shingles
Repair and repaint loose siding and caulking
Re-seal an asphalt driveway
Keep your garage door closed
Store RVs or old and beaten car elsewhere while the house is on the market
Apply a fresh coat of paint to the front door

Enhance the interior by:

Give every room a thorough cleaning (consider hiring a professional cleaning service every other week while house is on the market)
Remove all clutter
Remove less frequently used (even daily used items) from kitchen counters, closets, and attics, making these areas much more inviting
If necessary repaint dingy, soiled or strongly colored walls with a neutral shade of paint, such as off-white or beige
Check for cracks, holes or damage to plaster, wallboard, wallpaper, paint and tiles
Consider replacing broken or cracked windowpanes, moldings, and other woodwork
Repair dripping faucets and showerheads
Spruce up a kitchen or bath in need of a major remodel by investing in new cabinet knobs, new curtains or a coat of neutral paint

Units SOLD! By Steve Sawaii

West Los Angeles

11808 Iowa Avenue
1728 Stoner Avenue
1722 Stoner Avenue
11578 Iowa Avenue
2044 Colby Avenue

Santa Monica

1107 Ocean Park Boulevard
1301 Chelsea Avenue
1458 Princeton Street
1343 Oak Street
1447 Centinela Avenue
2914 Highland Avenue
2140 Stewart Street
1117 Ocean Park Boulevard
1618 Berkeley Street
929 19th Street
1128 Bay Street

Venice

2523 Abbot Kinney Boulevard
1004 Electric Avenue

Brentwood

130 S. Bowling Green Way