movingtokaty Posted June 20, 2006 Share Posted June 20, 2006 I am moving to Katy at the end of the year and will purchase a house in cinco ranch/grand lakes area. The property tax rate is very high there, so I want to save as much as tax as possible. Here are my questions: 1. How are new constructions appraised for property tax? Does the county appraise based on selling price? For example, if the base price for house is 300k, then I addded 30k options/upgrades to it, does that mean I will pay tax on 330k? It seems paying higher taxes on tile choices is not fair. 2. I looked up appraised value for pre-owned homes there (my price range is 250k-350k), most homes are selling about 50k above the appraised price, once I purchased the home, will the appraised value change to the price I paid for? Thanks everyone for helping out. Quote Link to comment Share on other sites More sharing options...
Trophy Property Posted June 20, 2006 Share Posted June 20, 2006 I am moving to Katy at the end of the year and will purchase a house in cinco ranch/grand lakes area. The property tax rate is very high there, so I want to save as much as tax as possible. Here are my questions:1. How are new constructions appraised for property tax? Does the county appraise based on selling price? For example, if the base price for house is 300k, then I addded 30k options/upgrades to it, does that mean I will pay tax on 330k? It seems paying higher taxes on tile choices is not fair. 2. I looked up appraised value for pre-owned homes there (my price range is 250k-350k), most homes are selling about 50k above the appraised price, once I purchased the home, will the appraised value change to the price I paid for? Thanks everyone for helping out. Most likely you will be appraised somewhere close to what you paid (including your upgrades). The taxing authorities have gotten smart and are doing their homeworke. It is hard to get around this fact !! Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted June 20, 2006 Share Posted June 20, 2006 Purchase price is about right. Want to get out of it and pay the 300k though? Pay for the upgrades out of pocket that way it doesn't show up on the purchase price of the home.Then fight, fight, fight your taxes every single year. Don't be surprised if your 300k home is valued at 285k a year or two down the road. It is now competing with other new homes in the surrounding area which contains lots of empty dirt with homes sprouting up all over.Scharpe St GuyMost likely you will be appraised somewhere close to what you paid (including your upgrades). The taxing authorities have gotten smart and are doing their homeworke. It is hard to get around this fact !! Quote Link to comment Share on other sites More sharing options...
Mr. Smarts Posted June 21, 2006 Share Posted June 21, 2006 Purchase price is about right. Want to get out of it and pay the 300k though? Pay for the upgrades out of pocket that way it doesn't show up on the purchase price of the home.Then fight, fight, fight your taxes every single year. Don't be surprised if your 300k home is valued at 285k a year or two down the road. It is now competing with other new homes in the surrounding area which contains lots of empty dirt with homes sprouting up all over.Scharpe St GuyHere's a similar question.Lets say I move into a new construction home in October of this year. Come 2006, will I be paying taxes on the prorated amount of the home or just taxes on the "dirt?"The sales lady told me that the city of Pearland has been taxing homes on the dirt value for the prorated year, not sure how true that is. Any input?? Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted June 21, 2006 Share Posted June 21, 2006 Not sure how Pearland or the county down there handles it. Regardless if they were "quick" you would only be paying a max of 3 months on the new appraised value. I would bet though that you won't get hit until the following tax year since the Govt does not act quickly.Good Luck,Scharpe St GuyHere's a similar question.Lets say I move into a new construction home in October of this year. Come 2006, will I be paying taxes on the prorated amount of the home or just taxes on the "dirt?"The sales lady told me that the city of Pearland has been taxing homes on the dirt value for the prorated year, not sure how true that is. Any input?? Quote Link to comment Share on other sites More sharing options...
Mr. Smarts Posted June 21, 2006 Share Posted June 21, 2006 Not sure how Pearland or the county down there handles it. Regardless if they were "quick" you would only be paying a max of 3 months on the new appraised value. I would bet though that you won't get hit until the following tax year since the Govt does not act quickly.Good Luck,Scharpe St Guycool! Thanks. I was wondering if the lady was just using that as a sales tactic or if it was a real possibility.Even if I pay taxes on those 3 months, it almost like paying no real taxes until 2008.. Not bad. Quote Link to comment Share on other sites More sharing options...
jm1fd Posted June 21, 2006 Share Posted June 21, 2006 cool! Thanks. I was wondering if the lady was just using that as a sales tactic or if it was a real possibility.Even if I pay taxes on those 3 months, it almost like paying no real taxes until 2008.. Not bad.It is a possibility. HCAD left the old geezer exemption on my house for 1/2 year.The sales trick you have to watch out for is "LOOK HOW LOW THE TAXES ARE!!!" Quote Link to comment Share on other sites More sharing options...
movingtokaty Posted June 21, 2006 Author Share Posted June 21, 2006 Purchase price is about right. Want to get out of it and pay the 300k though? Pay for the upgrades out of pocket that way it doesn't show up on the purchase price of the home.Then fight, fight, fight your taxes every single year. Don't be surprised if your 300k home is valued at 285k a year or two down the road. It is now competing with other new homes in the surrounding area which contains lots of empty dirt with homes sprouting up all over.Scharpe St GuyThanks for the info, now that I know I can get tax lower by paying options up front, I will do that definitely. Thanks again everyone. Quote Link to comment Share on other sites More sharing options...
Mr. Smarts Posted June 21, 2006 Share Posted June 21, 2006 It is a possibility. HCAD left the old geezer exemption on my house for 1/2 year.The sales trick you have to watch out for is "LOOK HOW LOW THE TAXES ARE!!!" That actually is their sales tactic. LOW TAXES.. It's all relatively speaking of course and I know that. The tax rate in that particular new subdivision is 3.29% compared to the others 3.8 and even shadow creek ranchs' 4.21% Its crazy!!!!!!!! Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted June 22, 2006 Share Posted June 22, 2006 Is that with or without the MUD (Municipal Utility District)? My area of Houston is only at 3%. Scharpe St Guy That actually is their sales tactic. LOW TAXES.. It's all relatively speaking of course and I know that. The tax rate in that particular new subdivision is 3.29% compared to the others 3.8 and even shadow creek ranchs' 4.21% Its crazy!!!!!!!! Quote Link to comment Share on other sites More sharing options...
Mr. Smarts Posted June 22, 2006 Share Posted June 22, 2006 Is that with or without the MUD (Municipal Utility District)? My area of Houston is only at 3%.Scharpe St GuyThat's with it.MUD, city, school district, etc. Quote Link to comment Share on other sites More sharing options...
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