In the first year, you can use your purchase price as evidence of the true value of your house. However, beware, they prorate that effect. If you bought the house 6 months before the date of the valuation, they might meet you halfway instead of just setting it at the purchase price. If the valuation is as of around the same time as the purchase, it should be the purchase price without any trouble. Either way, the purchase price is definitely a major weapon in your protest. When I did mine, I had 5 or 6 different arguments for why their valuation was too high. My first time through it was: HCAD's description was wrong, the purchase price was lower and it should be set at the purchase price, the house was new construction and should be set at the construction cost, the house was unique in the neighborhood and comparables didn't apply, the house was overbuilt for its street and could not be easily sold because of the environment (with pictures, bring lots of pictures), the street I was on was depressed compared to neighboring streets that were included in the valuation, and maybe one or two other arguments. So just pike on; something will stick; or else they'll get tired of hearing you talk and cut you a break just to make you shut up. Read all the appraisal district's literature on how to conduct a protest. They have good advice on how to approach it.
Is this a new construction? If so, then take your closing statement to them. I had to do the same thing in 2 counties - each county took all of 10 seconds to say "ok - we'll adjust the property value to your closing cost". If you appraisal district allows for informal reviews, just walk up to the offices and ask for one. Then present them with the closing statement. That's all you'll need to do. I didn't have to fill out anything.
the house is not a new construction and i closed on the house at the end of februaray. this is probably around the same time they were doing the appraisals.
Not sure why new construction matters. As long as it was an open market transaction, your purchase price is the value of the house. Go and protest, damnit!
you need to get a hold of someone who can do some research for you on sold data in the area ...they can help you determine what is the FMV for the home and the protest it accordingly if your hold sold for $47K less than what other homes similar to yours did, in your neighborhood, then they are going to base the value just on your purchase price the way the appraiser will see it is, just because you paid $47K less than everyone else did, doesn't mean you don't owe the same taxes everyone else does
I disagree. On recent sales, there is no better indicator of the value of a house than what is sells for, as long as the sale is open. Plus, all his neighbors will get to point to that sale to get their own appraisals reduced. Of course, there's only one way to find out -- protest.
By your theory, you could buy a $250K foreclosure for $125K and get to pay half the taxes your immediate neighbors do. That just isn't the case. Hence the term "FMV (Fair Market Value)" or "ACV (Actual Cash Value)". If he paid under FMV, then good for him. The county is not obgligated to give him a discount though when it comes to his taxes. Same goes for estates. My parent's home is paid for and Ill inherit it when they die. Doesn't mean I can get the appraisal value down to $0 and pay no taxes. At best, theyll consider it in an average amongst other houses, but when the real sales data is inconsistent with what similar houses are selling for, then comparables are always used in the average. An appraisal is never based on 1 home alone.
Well, that's why I keep saying "open market transaction." A foreclosure sale is not open market; an inheritence is not open market. Anyway, would you agree that he should protest?
Look, if you're not comfortable getting sales data from a friendly realtor and protesting yourself based on market value by sales comparables, then hire someone to do it for you. They will get a percentage of the savings - anywhere from 30% to 50% of the savings, depending on the amount of potential savings, and if you pay an upfront reasearch fee. That is negotiable. Here's some in the business : O'Connor and Assoicates Burr Wolff Novotny and Co. Real Estate Tax Consultants Revac, LLC et al I've used most of these companies and they all do a good job. I bid my company's tax portfolio every year. I'm a licensed appraiser, and used to protest successfully myself, but I found that hiring a professional that does it every day was still worth the price, as they got better research and better negotiations, and it gave me back time to run my business. You need to hit the phones when you get your value and get that protest filed. For forms, check http://www.hcad.org or your local appraisal district. For a local ad valorem tax consulting firm away from Houston - search google. My personal ad val tax bill would make you guys eyes bug. I built my own house, and it's gone way up in value. So, now, instead of a mortgage, I write a mortgage sized check every month to savings to pay that bill for the priviledge of living on my property. . That's our tax system, though. It really is an inefficient, inequitable and illogical way to structure government funding - I mean, we're not really a land economy - but income tax and sales tax seem to be poision topics to the republican powers. They should wake up and smell the coffee, though - the state suffers from poor distribution of the tax burden. It could be much better for business and citzenry generally. Personally, I'd rather abolish all property tax and replace it with a combination of income and sales tax - but that's me. I don't see how owning dirt and sticks should be seen as the primary drain on the common resources. I think we'd have better schools, roads, and services -especially from the legal, accounting, information, medical and church economies that now are largely untaxed. Must be nice, hmm - generate great wealth but occupy little space - presto - no tax to schools, roads, state or local government. .
when i was signing my closing papers the lady from the title company suggested that i bring my closing papers to hcad to protest the value. spoke with my realtors today and he basically said the same thing as Juan. i am rounding up the posse and we will bring them hell.
Absolutely. Odds are great that hell get it down some. I just don't see it getting reduced based soley on what he paid for it. In the end, it will still be somewhat in line with neighborhood sales as a whole, even if its on the low side.
You don't need to go in there with an attitude. Like others in this thread had alluded to, the people at the appraisal offices are very easy to persuade. If you have some credible paper or even if you just ask nicely, they will knock the appraisal value down for you in a minute. It is really not a big hassle. Don't go in there and start some sh. and cause yourself the headache.
you must work in the appraisal offices and are getting scared of my posse....just kidding man...i am not going there to pick a fight, just going through the motions of getting my property value lowered but if they dont coperate i am pulling out my butterfly knife....like a responsible adult
Exactly...I don't have time to do it right now. I just hired a O'Connor and Associates to get after it.
