Should I Protest?

[newhomeowner]

My wife and I just bought our first home. I noticed that the 2008 appraisal is now showing on HCAD and is $20k more than 2007 value. However, it is still considerably lower (like $100k plus) than what we paid for it. In fact, the house underwent an extensive remodel so that the square footage and room count shown is no longer accurate.

Should I bother protesting the new appraisal or am I better off not drawing attention to the discrepancies? FYI, the mortgage companies appraisal came in just a bit higher than the purchase price so I'm not even sure what I would base a protest on? Also, the new appraisal is due to an increase in the land value and a small decrease in the house value, and I think I've read that lowering the land value is almost impossible, so does that play into the decision.

Based on the conversation during closing, no one involved is planning on reporting the actual sales price and I was told that when I get a questionaire from from HCAD that asks what the sales price was, I'm not required to provide that information. So based on all of that information, any advice? Better to accept the new value knowing the house is worth a lot more, or follow through on the "protest every year" strategy?

Thanks!

[musicman]

i would be thankful and just lie low.

[jm1fd]

Were permits pulled during the renovation process? If so, then HCAD will eventually update their records, and whallop you with an increase next year, and you won't get the benefit of the 10% cap.

Was the house listed in the MLS? If so, the fluffy bunnys are required to enter the sale price into the MLS. HCAD draws a majority of their sales price info from the MLS. Even with no permits pulled, you'll get whalloped next year.

Don't protest and enjoy the discount this year. Next year, prepare for a bigger tax bill.

[Marksmu]

Protest, based on the old amount...it will help you when they wallop you next year. If the construction of the remodel was not complete on Jan 1, then you get this entire year at the old price regardless of what you paid.....You will get walloped if they pulled permits, and its better to get walloped on a lower starting point. They cant stick you with it if it wasnt complete on Jan 1.

Were permits pulled during the renovation process? If so, then HCAD will eventually update their records, and whallop you with an increase next year, and you won't get the benefit of the 10% cap.

Was the house listed in the MLS? If so, the fluffy bunnys are required to enter the sale price into the MLS. HCAD draws a majority of their sales price info from the MLS. Even with no permits pulled, you'll get whalloped next year.

Don't protest and enjoy the discount this year. Next year, prepare for a bigger tax bill.

[RedScare]

I would not protest. You already noted that all of the increase was in land value. You are correct that this is nearly impossible to change. It sounds like you have very little upside, and lots of downside...a possible INCREASE in appraised value. Why take the chance?

That said, if you find that the land value is out of whack with others in the neighborhood, you should consider protesting on that basis. It never works for me, as I live in the Heights, which has standard lot sizes of 6,600 square feet, and you can see every house has the same land value, but in a neighborhood with irregular lot sizes, you might see a mistake.

[sifuwong]

What are some good strategies to protest tax appraisal increases?