A home that sells off-market never appears in the MLS, but it does not disappear from the public record. The county learns the price the same way it learns every price, and the buyer’s tax bill is set from it. This page explains the path so buyers and sellers of private sales can plan.
Off-Market Basics
Off-Market Sales and Property Tax: How the Assessor Knows
A private sale is off the MLS, not off the record: how the deed, the change-of-ownership report and the assessor turn an off-market price into a new tax value.
Off-market is not off the record
When ownership of California real property changes, a deed is recorded with the county recorder, and a Preliminary Change of Ownership Report (form BOE-502-A) is filed with it. The report tells the assessor the price and terms so that it can reassess the property. The San Diego County Recorder notes that if the report is required and not submitted when the deed is recorded, it may charge an additional recording fee.
The assessor’s reassessment does not depend on whether a home was marketed through the MLS. A private sale between two parties is treated as a change in ownership like any other, and the assessed value is reset to the market value at the time of the sale. That is why buyers of off-market homes should budget from the price they agree, not from the seller’s bill.
Worked example
A first-year bill at today’s typical price
The base layer for a purchase at the San Diego metro’s typical value, with the assessed value at the 2% cap.
What the bill could look like, year by year
The starting point is the typical home value in the San Diego metro area: $930,785 in Aug 2026. The tax rate used is 1.15% (the 1.00% base and a round 0.15% for bonds and local charges). The assessed value grows at the 2% ceiling, and the market value at 5% a year, only to show how the two separate.
| Year | Taxed value (2% cap) | Bill on that value | Market value at 5% a year | Bill at market value | Gap between the two |
|---|---|---|---|---|---|
| Year 1 | $930,785 | $10,704 | $930,785 | $10,704 | $0 |
| Year 2 | $949,401 | $10,918 | $977,324 | $11,239 | $27,924 |
| Year 3 | $968,389 | $11,136 | $1,026,190 | $11,801 | $57,802 |
| Year 5 | $1,007,511 | $11,586 | $1,131,375 | $13,011 | $123,863 |
| Year 10 | $1,112,374 | $12,792 | $1,443,953 | $16,605 | $331,579 |
Put simply, a purchase at $930,785 starts near $10,704 a year, or $892 a month. Ten years on, the owner’s bill has grown to roughly $12,792 at most; someone buying an identical home then would begin near $16,605. Left out here: special taxes, the $7,000 homeowners’ exemption and any Proposition 8 reduction.
Costs that follow the deed
- The reassessment and supplemental bill, for the difference between the old and new assessed values.
- Documentary transfer tax, commonly $1.10 per $1,000 of value in San Diego County, with some cities adding their own. Your escrow officer shows the figure on the closing statement.
- Recording fees, which the recorder sets.
Rudy’s articles on what off-market really means and the off-market buyer playbook cover the process from the deal side.
Worked example
The buyer’s supplemental bill
How the difference between the old and new value turns into a bill after closing.
A supplemental bill, step by step
Assumes a purchase at the typical home value in the San Diego metro area ($930,785) from a seller whose assessed value was $510,000 (a hypothetical figure for the example), taxed at 1.15%. The county’s own calculation is the one that counts.
| Step | Result |
|---|---|
| New value at purchase | $930,785 |
| Old assessed value | $510,000 |
| Supplemental assessed value (difference) | $420,785 |
| Annual tax on the difference at 1.15% | $4,839 |
| Closing | Months taxed | Approximate supplemental tax | Why |
|---|---|---|---|
| Closing in October | 8 months | $3,226 | From the first of the following month (November) to the end of the fiscal year on June 30 |
| Closing in March | 15 months | $6,049 | The rest of the current fiscal year (April to June, 3 months) plus the whole next fiscal year (12 months) |
A supplemental bill is separate from the regular bill and comes in addition to it. When a lender collects property tax in an escrow account, the regular bill is usually paid from that account, while a supplemental bill is often mailed to the owner directly, so watch for it in the months after closing. Ask your lender and title company how yours will be handled.
For sellers: pricing without the MLS
Private sales rest on an accurate price. The assessor will value the home at the price you agree, and the buyer’s lender will order an appraisal, so both ends of the deal look at market evidence. Rudy’s article on how sellers know a fair price without the MLS explains how to gather that evidence.
Common questions
Does an off-market sale avoid reassessment?
No. A change in ownership triggers a reassessment whether or not the home was marketed publicly.
Who files the change-of-ownership report?
It is filed with the deed when it is recorded, and your escrow or title company handles it.
Is the price public?
The deed and the reported details go to the county. What the public can see depends on county records rules.
Can I estimate the buyer’s tax before we agree?
Yes. The property tax estimator gives a first pass.
Keep exploring
- The off-market guide — What off-market means and how it works.
- Blog — Playbooks for buyers and sellers.
- Property tax estimator — Try your own numbers.
- FAQ — Common questions.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
Sources
- San Diego County Recorder: recording documents
- San Diego County: Preliminary Change of Ownership Report instructions
- San Diego County Assessor: real property assessment
- Public Policy Institute of California: Proposition 13, 40 years later
General information for orientation, not legal, tax, financial or appraisal advice. Details change; confirm anything that matters with the official source, your lender and your agent.