tax protesting

[musicman]

i received a substantial increase in the appraisal on one of the properties i own. I also received a personalized letter (and a standard form letter as well) from O'Connor and Assoc. with some specific numbers on how much they feel they can bring my taxes down and it is substantial. i'm just wondering whether anyone has used them and were their efforts successful.

[spiderman]

i received a substantial increase in the appraisal on one of the properties i own. I also received a personalized letter (and a standard form letter as well) from O'Connor and Assoc. with some specific numbers on how much they feel they can bring my taxes down and it is substantial. i'm just wondering whether anyone has used them and were their efforts successful.

Musicman

It looks like I am in a similar situation - HCAD is hitting me with significant increases on two properties I own in Montrose.

I received a similar letter from O'Connor with specific numbers - I don't have it with me (I am currently out of town), but from what I remember the data they used was my 2006 appraisal (post protest) and a comparison to other appraisals in my neighborhood (I assume from 2006 also), and a handwritten note that said something like "your taxes are too high"

Pat O'Connor was a guest speaker last week at a real estate investment club that I belong to, he gave a presentation on the appraisal and protest process, he also said that their web site (www.cutmytaxes.com) has alot of useful information if you want to handle the protest yourself.

I have always done my own protests, and will probably do it myself again this year, based on what O'Connor sent me, their fee would have more than wiped out any additional tax savings I would have gained by using their services, and the fees would be substantial since I have been able to get reductions of $50k to $75k on my own on each property by cherry picking comparable sales, as there are a wide range of prices in the sales comps in Montrose.

If you belong to one of the local real estate clubs, O'Connor will reduce their fee for residential appraisals from 50% to 35%.

[musicman]

the letter i received sounds similar. i normally protest mine every yr as well but the amt of reduction they are talking about is is surprising and that's why it garnered a 2nd look. i have a another piece of undeveloped property that went to 21k to 49k which i find ridiculous. i will PM you for more info. thx

Edited May 20, 2007 by musicman

[bach]

I haven't protested in a couple of years, don't want/cant to take the time to protest right now, so I've sent in to sign up. Figure that if they can get my valuation lowered, it'll help me now and in the next year or two. We'll see.

[TheNiche]

i received a substantial increase in the appraisal on one of the properties i own. I also received a personalized letter (and a standard form letter as well) from O'Connor and Assoc. with some specific numbers on how much they feel they can bring my taxes down and it is substantial. i'm just wondering whether anyone has used them and were their efforts successful.

DIY

[bachanon]

i too received letters from the same firm for both of my properties. ditto the DIY sentiment.

[cottonmather0]

We used O'Connor last year and I was very pleased with how smoothly and easily the process went. I've never protested my own taxes before (only been a homeowner 3 years) and I've heard that it can be quite a headache with the numerous appointments and offers and counteroffers and research that has to be done finding comparable properties (i.e. you have to make at least one trip to HCAD beforehand to go do research...) That said, my wife thought O'Connor was a waste of money last year and has vowed to do it herself this year.... which will be easy this time around because we had a bank appraisal performed just a couple of months ago in conjunction with the remodel we just finished. (HCAD says the house is worth about 10% more than the appraiser thought, so this should be pretty easy for her to do.)

I would recommend O'Connor, though, mainly just because it's convenient and saves you the work. If you have the time though, doing it yourself will save you more money.

[TexasArchitect]

i don't understand y you wouldn't just protest yourself by filing the tax protest form??

i've heard from several people that they were successful in having the tax decreased w/o having to appear for any hearing....

[musicman]

i don't understand y you wouldn't just protest yourself by filing the tax protest form??

i've heard from several people that they were successful in having the tax decreased w/o having to appear for any hearing....

i do protest every yr. the numbers they sent were considerably more than i could get it down to. i'm currently over 20k less than my neighbors due to my past protests and they claimed they could get it down another 30k.

[nimbusdog]

i do protest every yr. the numbers they sent were considerably more than i could get it down to. i'm currently over 20k less than my neighbors due to my past protests and they claimed they could get it down another 30k.

They sent me the personalized version in the mail as well. The problem is that the data was all from 2006, and there were only 5 comps on there. The comps were all based on valuations from the appraisal district. 3 of the 5 comps were properties that were under construction when they were appraised last year. I checked their valuations online, and needless to say, their appraisals have gone up considerably this year.

[musicman]

They sent me the personalized version in the mail as well. The problem is that the data was all from 2006, and there were only 5 comps on there. The comps were all based on valuations from the appraisal district. 3 of the 5 comps were properties that were under construction when they were appraised last year. I checked their valuations online, and needless to say, their appraisals have gone up considerably this year.

thx...i haven't had time to pull any data but definitely worth remembering! at the minimum i have to get my protests in this week.

[heightsfan]

Good Afternoon All,

What are the basic steps to protest yourself ?

What are they looking for to consider a valid reduction in taxes ?

Older block with unpaved streets, located near high traffic, neighbors homes need major repairs ?

Also will a surveyor or inspector visit your home to confirm validity to your protest ?

What happens if your request is declined ?

Does your home have to be in tip top shape , up to code , and recently appraised to protest or to have reduction ?

Thank You

[spiderman]

Good Afternoon All,

What are the basic steps to protest yourself ?

What are they looking for to consider a valid reduction in taxes ?

Older block with unpaved streets, located near high traffic, neighbors homes need major repairs ?

Also will a surveyor or inspector visit your home to confirm validity to your protest ?

What happens if your request is declined ?

Does your home have to be in tip top shape , up to code , and recently appraised to protest or to have reduction ?

Thank You

The first thing to do is to file your Notice of Protest by the May 31 deadline. If you are in Harris County, you can do this on line at www.hcad.org/iFile, you will need the iFile Number from the Notice of Appraised Values that you should have received in the mail in the past month. Check both "Value is over market value" and "Value is unequal compared with other properties" as reasons for the protest to preserve both options.

If you had a professional appraisal done in the last year (if you purchased the house or refinanced), and that appraisal is lower than your HCAD 2007 reappraisal, you can use that as the basis to reduce you appraised value.

If not, you can use comparable sales (have a realtor run a Comparative Market Analysis (CMA) of sales of properties similar to yours as close to 1/1/07 as possible), or unequal appraisal (compare to appraised values of similar homes in your neighborhood).

If you have deferred maintenance on your home (it needs a new roof or foundation repairs, for example), you can get estimates on the cost of these repairs and use this as part of your basis for a reduced appraisal.

You can do this yourself or hire a professional service. The professionals will charge you 50% of the tax savings that they achieve.

As far as I am aware, no one will come out to your home to confirm the validity of your protest. if your protest is declined, your proerty taxes will be based on the value that HCAD assigned to your home.

The HCAD web site www.hcad.org and O'Connor's web site www.cutmytaxes.com are two sources of information that may be helpful.

[Parrothead]

O'Connor & Assoc. are strictly a convenience-based service. They can't do for you any more than you can do yourself.

We received the same personalized letter, along with our assessment statement, from LAST year. I thought, wow, if they can't even get the year right, perhaps I'm better off on my own.

[Chamo]

O'Connor & Assoc. are strictly a convenience-based service. They can't do for you any more than you can do yourself.

We received the same personalized letter, along with our assessment statement, from LAST year. I thought, wow, if they can't even get the year right, perhaps I'm better off on my own.

One thing is for sure, they either have deep pockets or have very high hopes on this marketing campaign. I have gotten 2 letter from them and also a nice Brochure.

I live in Brazoria and have not received my assessment statement yet, but thanks to their website Brazoria County I can see my recently updated 2007 appraisal and every single one of my neighbor's. Crazy how for the same builder and subdivision they can appraisse anywhere from $72/sqft up to $90/sqft!!! on the building improvements (Not including extras like pool, etc).

Deadline to protest I understand es either May 31 or 30 days after receiving the letter, which seems like some parts of Brazoria including me will be more end of June.

[Gumby]

i received a substantial increase in the appraisal on one of the properties i own. I also received a personalized letter (and a standard form letter as well) from O'Connor and Assoc. with some specific numbers on how much they feel they can bring my taxes down and it is substantial. i'm just wondering whether anyone has used them and were their efforts successful.

Yea I got that letter too. Actually today I submited my form to advaloremtax.net which has a better rate. I heard about this site from an attorney so I believe is good. I have heard from people that it works and so I am giving it a try. I submitted 3 properties so they will charge 35%. Occonor charges 50%. So let me know if you try it.

Later,

Gumby.

[musicman]

Yea I got that letter too. Actually today I submited my form to advaloremtax.net which has a better rate. I heard about this site from an attorney so I believe is good. I have heard from people that it works and so I am giving it a try. I submitted 3 properties so they will charge 35%. Occonor charges 50%. So let me know if you try it.

Later,

Gumby.

thx for the info. will look it up tonight.

[spiderman]

thx for the info. will look it up tonight.

Just passing this on in case anyone is interested - HCAD and GCAD are conducting seminars on how to protest your property appraisals.........

Harris County Tax Office Media Advisory

Harris County Tax Office Along with HCAD and Galveston County TAC Conducting Appraisal Protest Seminars before Deadline

HOUSTON

- May 25, 2007 - Harris County Tax Assessor-Collector Paul Bettencourt along with Harris County Appraisal District Chief Appraiser Jim Robinson and Galveston County Tax Assessor-Collector Cheryl Johnson will conduct simultaneous two-county taxpayer appraisal protest seminars on May 30, 2007. The deadline to protest property appraisals for most accounts is May 31, 2007.

Who:

Harris County Tax Assessor-Collector Paul Bettencourt

Harris County Chief Appraiser Jim Robinson Galveston County Tax Assessor-Collector Cheryl Johnson

What:

How to Protest your Property Appraisals

When:

Wednesday, May 30, 2007

2 p.m. to 6 p.m.

Where:

Harris County

Taste of Texas

10505 Katy Freeway

Houston, TX 77024

Galveston County

Galveston County North Annex

174 Calder

League City, TX 77573

Why:

[bach]

I haven't protested in a couple of years, don't want/cant to take the time to protest right now, so I've sent in to sign up. Figure that if they can get my valuation lowered, it'll help me now and in the next year or two. We'll see.

RESULTS

Got it in the mail today: HCAD was going to increase my value 10%. After O'Connor was finished, the value increased only 4%. It was something I could have tried to do myself, I'll write a check, but it was really worth it.

[musicman]

RESULTS

Got it in the mail today: HCAD was going to increase my value 10%. After O'Connor was finished, the value increased only 4%. It was something I could have tried to do myself, I'll write a check, but it was really worth it.

thx for the update. i still haven't received my protest package yet. hopefully soon.

[stolitx]

O'Connor protests mine every year. It's total convenience, it's done and I don't have to think about it. In fact my employee went today to protest his at a hearing.

[bach]

O'Connor protests mine every year. It's total convenience, it's done and I don't have to think about it. In fact my employee went today to protest his at a hearing.

Do you think that hiring them every other year would work?

[Leon]

One question: does anyone have any experience protesting rental property? I own a house in Montrose and using income approach would certainly be really beneficial versus comparable sales approach in an assessment. I know it is too late for 2007 but I am thinking about next year .. Thanks!

[stolitx]

Do you think that hiring them every other year would work?

You only pay them if they successfully reduce the value so I don't think every other year would matter. For me it's simple convenience, they take care of it every year. Most years they were able to keep my appraisal from going up, which is good enough for me. One year there was a reduction and that is the only year I had to pay them.

[MyHomeHouston]

If not, you can use comparable sales (have a realtor run a Comparative Market Analysis (CMA) of sales of properties similar to yours as close to 1/1/07 as possible), or unequal appraisal (compare to appraised values of similar homes in your neighborhood).

Thanks for the detailed how-to Spiderman. If anyone needs a CMA completed, I can have one and sent within the morning/afternoon. We don't charge any fees; they're always complimentary. Just give me a ring with your address and we'll get it sent right over.

[ncstdc]

Thanks for the detailed how-to Spiderman. If anyone needs a CMA completed, I can have one and sent within the morning/afternoon. We don't charge any fees; they're always complimentary. Just give me a ring with your address and we'll get it sent right over.

what's the catch? i've done a CMA by just datamining hcad's website for other houses within a few block of mine, but would probably be able to knock down a few more grand with easier access to an mls database.

[musicman]

what's the catch? i've done a CMA by just datamining hcad's website for other houses within a few block of mine, but would probably be able to knock down a few more grand with easier access to an mls database.

i met a nice person in my hood who gave me great data.......some sizzling tofu might do the trick.

[jm1fd]

what's the catch? i've done a CMA by just datamining hcad's website for other houses within a few block of mine, but would probably be able to knock down a few more grand with easier access to an mls database.

The catch is: The fluffy bunny knows your name and where you live!

[MyHomeHouston]

The catch is: The fluffy bunny knows your name and where you live!

First of all there isn't a catch. I won't sent you mail or bother you. You want a CMA, I'll send you a CMA. It doesn't take that much of my time to do at all. The reason I do it is that if somewhere down the line you meet anyone looking to buy or sell a home, you might think of me, and to me that's important. No catches, no gimmicks.

I appreciate the kind words jm1fd. Besides, tax records can easily show anyone that information. (name and where you live)

Edited September 8, 2007 by MyHomeHouston

[Leon]

Two big issues with using tax services (especially true of FY 2007):

1) They charge 50% of the savings. However, for most people, these charges are not tax deductible (even if you itemize) because they are subject to the 2% AGI "floor" in Schedule A. i.e. only the portion of the charges exceeding 2% of your annual adjusted gross income can be deducted (albeit this can be lumped with other tax preparation and investment expenses). On the other hand, property tax is fully deductible if you itemize.

2) Specific issue this year was that they calculated savings based on 2006 tax rates. Since in 2007 tax rates are expected to drop significantly (specifically HISD rate will drop from 1.45 down to 1.2% or so), the actual charge is significantly more than 50% of the savings.

Additionally, their contracts have some unpleasant evergreen clauses meaning that they get extended automatically unless you cancel prior to Mar 1.

Bottom line: when I did my math, I estimated that their effective charge taking into account both items above is about 100% of the tax savings. So I have a choice: pay to the government or to these firms. I chose the former. Hopefully, I can get something out of taxes (better schools? roads?) - in any case there is some hope. With these guys, I am just helping them out.