Property taxes after purchasing new home

[Markus]

And frankly, HCAD won't increase the assessed value of a structure by, say, 30%.

All this IMO.

no, actually I've seen it increased almost 50%

[OkieEric]

no, actually I've seen it increased almost 50%

Well crap, my 2007 appraisal value just showed up online and I'm not too pleased. I bought my place in August 2006 for just under 10% UNDER the tax appraisal, which seemed artificially high to me versus other houses in the area. Anyway, for 2007 they actually increased the appraisal by 15%, making it nearly 25% above what I actually paid just 8 months ago.

Is this good grounds for a successful protest? I've got documentation showing my purchase price and the appraisal done during the purchase, which shows the various comps used to arrive at a value very near that purchase price. Is it as simple as filling out that form, including some documentation, and sending in a package to them? I've never owned a place before this

I also have a friend who has a new place that really went up in appraisal value, only it has the wrong details (says 3 bedroom, 2500 sq ft when it's 2 bedroom, 2000 sq ft). Are the details shown on hcad.org the basis for their calculations?

[musicman]

Well crap, my 2007 appraisal value just showed up online and I'm not too pleased. I bought my place in August 2006 for just under 10% UNDER the tax appraisal, which seemed artificially high to me versus other houses in the area. Anyway, for 2007 they actually increased the appraisal by 15%, making it nearly 25% above what I actually paid just 8 months ago.

Is this good grounds for a successful protest? I've got documentation showing my purchase price and the appraisal done during the purchase, which shows the various comps used to arrive at a value very near that purchase price. Is it as simple as filling out that form, including some documentation, and sending in a package to them? I've never owned a place before this

I also have a friend who has a new place that really went up in appraisal value, only it has the wrong details (says 3 bedroom, 2500 sq ft when it's 2 bedroom, 2000 sq ft). Are the details shown on hcad.org the basis for their calculations?

yes go protest! you should win that easily.

if something has the wrong details, you can save that for a later year too. i know my friend's garage burned down and it still shows up. this year she will be using that info.

[Howard]

I also just bought a home. This one was recently completed and brand new. While looking at the paperwork on the closing they maxed out my property tax at over $600.00 per month!!! They said this is because the taxes havent be assessed yet. I am looking forward to how this works and if my payment will change. Anyone know how to get this information?

Thanks

[musicman]

I also just bought a home. This one was recently completed and brand new. While looking at the paperwork on the closing they maxed out my property tax at over $600.00 per month!!! They said this is because the taxes havent be assessed yet. I am looking forward to how this works and if my payment will change. Anyone know how to get this information?

Thanks

maxed out? there is no maximum. just keep checking hcad.org and put in your address. you can also email them. you'll usually get a response in a day or so.

[jm1fd]

Well crap, my 2007 appraisal value just showed up online and I'm not too pleased. I bought my place in August 2006 for just under 10% UNDER the tax appraisal, which seemed artificially high to me versus other houses in the area. Anyway, for 2007 they actually increased the appraisal by 15%, making it nearly 25% above what I actually paid just 8 months ago.

Is this good grounds for a successful protest? I've got documentation showing my purchase price and the appraisal done during the purchase, which shows the various comps used to arrive at a value very near that purchase price. Is it as simple as filling out that form, including some documentation, and sending in a package to them? I've never owned a place before this

I also have a friend who has a new place that really went up in appraisal value, only it has the wrong details (says 3 bedroom, 2500 sq ft when it's 2 bedroom, 2000 sq ft). Are the details shown on hcad.org the basis for their calculations?

Yes. You can protest. You will win. Don't mention anything other than what you paid for it. Ignore the comps....your purchase is the best comp. You will have to go down there, and probably go before an appraisal review board for the protest, but it should be pretty easy. The documentation you'll need will be your closing statement.

As to your friend...yes...square footage is one of the major factors in the calculation. Number of bedrooms...not so much. He should file a protest, and cite the reason as inaccurate square footage/property attributes/whatevertheycallit.

[longcat]

I got my 2007 hcad valuation, and at first blush it's pretty reasonable since it is under what I paid for the property last year. However, in comparing the improvements portion of the market valuation to many of my neighbors houses with comparable statistics (age built, size, 2 story, style...etc) my improvements value is more than double theirs. I would have thought that that would be ironclad evidence for an 'unequal appraisal' appeal, but in looking at HCAD's website, you are only able to use recently sold houses as comparables. How does that fulfill the intent of the 'unequal appraisal' avenue for protest???? I have no objection to paying my fair share, but why should similar structures in similar states of depreciation and with similar renovations be taxed at over 100% different amounts???

HCAD's stated methodology for filing an 'unequal appraisal' protest forces you to use only comparable sold houses. When I look at those for my area, I find that they are in a similar situation and so provide little evidence of unequal valuation. So my question is do I have to use the formalized and rigid 'step by step' approach that HCAD lays out for making an unequal appraisal protest, or can I put my analytical skills to use and make a case based on whatever relevant data I can find?

[spiderman]

I got my 2007 hcad valuation, and at first blush it's pretty reasonable since it is under what I paid for the property last year. However, in comparing the improvements portion of the market valuation to many of my neighbors houses with comparable statistics (age built, size, 2 story, style...etc) my improvements value is more than double theirs. I would have thought that that would be ironclad evidence for an 'unequal appraisal' appeal, but in looking at HCAD's website, you are only able to use recently sold houses as comparables. How does that fulfill the intent of the 'unequal appraisal' avenue for protest???? I have no objection to paying my fair share, but why should similar structures in similar states of depreciation and with similar renovations be taxed at over 100% different amounts???

HCAD's stated methodology for filing an 'unequal appraisal' protest forces you to use only comparable sold houses. When I look at those for my area, I find that they are in a similar situation and so provide little evidence of unequal valuation. So my question is do I have to use the formalized and rigid 'step by step' approach that HCAD lays out for making an unequal appraisal protest, or can I put my analytical skills to use and make a case based on whatever relevant data I can find?

Longcat

I have never used unequal appraisal in my protests, and was thinking about using it myself this year after I got the solicitation from O'Connor, I did not realize you had to use recent sales in the unequal appraisal analyss, but I just checked the HCAD web site and that sure seems to be what it says on page 9, item 3 of the EqualAppraisal pdf on the HCAD web site.

I checked O'Connor's web site, and his write up does not mention this -

Uniform and Equal Approach

The Texas Property Tax Code was amended in 2003 to allow property tax for property owners to protest based on "a reasonable number of comparable properties appropriately adjusted." This new section of the Texas Property Tax Code allows a protest based on a limited number (perhaps 3 to 10) of assessment comparables. Some appraisal districts agree and are considering protests under the section. Others have chosen to interpret this section differently.

To prepare a protest using Uniform and Equal, gather data on assessed values for property similar to your property. Make adjustments for significant differences between the assessment comparables and your property. This can include items such as building size, land size, number of bedrooms, number of bathrooms, size of garage, site influences, age, etc. Make negative (downward adjustments) to an assessment comparable for items that are superior in the assessment comparable. For example, if the assessment comparable has four bedrooms and your house has three bedrooms, make a downward adjustment to the assessed value for the assessment comparable for this item. After applying appropriate adjustments to the assessment comparables, calculate the median level of assessment for the assessment comparables. The median is the middle data point after the adjusted assessment comparables are arrayed in order of increasing or decreasing (on a per square foot value basis). Multiply the median per square foot assessed value times the size of your property (improved area) to calculate the value your home should be assessed for based on Uniform and Equal. Section 41.43 of the Texas Property Tax Code provides you the opportunity to protest using this methodology. However, don't be surprised if your local appraisal district is not receptive to this method of protest.

I think I will give O'Connor's office a call and ask them directly what their take on what Section 41.43 allows, and their take on whether the HCAD would accept an unequal appraisal analysis based on compariosn to properties that were not recent sales.

I went to a presentation Pat O'Connor gave at a local real estate investment club last week, Pat talked about unequal appraisal, I do not remember him saying anything about having to use properties that were recent sales in the analysis.

I am wondering if Section 41.43 is as restrictive as the methodology HCAD is telling us to use - can HCAD refuse to accept a methodology that does not use properties that were recent sales in the unequal appraisal analysis..................

[longcat]

Spidey,

Thanks and please let me know what you find out from O'conner. I'm very interested to hear, and would also consider using his firm since public speaking really isn't my thing.

[spiderman]

Spidey,

Thanks and please let me know what you find out from O'conner. I'm very interested to hear, and would also consider using his firm since public speaking really isn't my thing.

I called O'Connor's office yesterday, ended up talking to a lower level employee who tried to be helpful, however she had not even heard of using unequal appraisal as the basis for a protest.

She gave me the name and email address of one of her co-workers who she said would be able to answer my question, I fired off an email but received no response so far.

I then sent an email to the president of a small firm in the Woodlands that does property tax protests (I heard him speak at another real estate investment group earlier this month), he sent me the following reply by email

" There is nothing requiring that the properties be recent sales. HCAD often utilizes some sales comparables in their unequal analysis, but they do acknowledge all reasonably adjusted comparables whether they have sold or not. I haven

[spiderman]

Just passing this on in case it may be helpful for anyone - 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:

[longcat]

Update - I went before the board, and they reduced my improvement value based on my unequal appraisal argument. The issue about only using recent sales comps in an unequal appraisal protest did not come up at all.

I have one question though. One of the things presented by HCAD against me was the 'Cost and Design' portion of the 'Building Data' that they keep. They list my house as 'Total' which means that it has been completely renovated, while all my comps were 'partial' or 'extensive'. I can't find any formal definition for these terms on the HCAD website. Who determines what is 'extensive' versus what is 'total', and how is that determination made? I really disagree with the 'total' designation, but don't even know where to start in terms of how to get it changed.

[jm1fd]

Update - I went before the board, and they reduced my improvement value based on my unequal appraisal argument. The issue about only using recent sales comps in an unequal appraisal protest did not come up at all.

I have one question though. One of the things presented by HCAD against me was the 'Cost and Design' portion of the 'Building Data' that they keep. They list my house as 'Total' which means that it has been completely renovated, while all my comps were 'partial' or 'extensive'. I can't find any formal definition for these terms on the HCAD website. Who determines what is 'extensive' versus what is 'total', and how is that determination made? I really disagree with the 'total' designation, but don't even know where to start in terms of how to get it changed.

Probably take pictures to show that portions are original, and present that to the review board. At the beginning of the hearing they should ask you if everything on your record is correct.

I'm thinking my best shot this year is unequal appraisial based on HCAD's own numbers for other houses in my 'hood....based on the junk I got on the mail from O'Connor, that's how they do their unequal appraisials. Hopefully I'll be one of the last folks in the 'hood to go before the board, then I can use everybody that's already gone before the board and gotten a reduction as evidence. LOL

[spiderman]

Probably take pictures to show that portions are original, and present that to the review board. At the beginning of the hearing they should ask you if everything on your record is correct.

I'm thinking my best shot this year is unequal appraisial based on HCAD's own numbers for other houses in my 'hood....based on the junk I got on the mail from O'Connor, that's how they do their unequal appraisials. Hopefully I'll be one of the last folks in the 'hood to go before the board, then I can use everybody that's already gone before the board and gotten a reduction as evidence. LOL

Does anyone have anything I could reference to demonstrate the reduced value of a 1985 remodel as opposed to a recent (1998-2005 remodel)?

I argued this to little avail with the appraiser and the ARB - I was wondering if there was any industry data, etc that I could use as reference next year?