HCAD Appraised Values 2007

[heightsfan]

Good Afternoon,

hope your day goes well !

Can someone please clarify or confirm if a new home from ground up sell price ranging from $500k and up

can significantly increase property taxes even though all other homes on that block are much older, smaller, and cheaper?

So I am assuming no need to approach HCAD about reduction in property taxes since the value of the block is going from

old homes to new and expensive homes ?

Thank You

"make it a great day"

[rps324]

Good Afternoon,

hope your day goes well !

Can someone please clarify or confirm if a new home from ground up sell price ranging from $500k and up

can significantly increase property taxes even though all other homes on that block are much older, smaller, and cheaper?

So I am assuming no need to approach HCAD about reduction in property taxes since the value of the block is going from

old homes to new and expensive homes ?

Thank You

"make it a great day"

It is always worth it to try and fight your taxes. If you don't want to do it yourself, hire someone.

[TheNiche]

It is always worth it to try and fight your taxes. If you don't want to do it yourself, hire someone.

Not always. If you've been underappraised, as happens from time to time, don't fight it. They can and will slap you with a higher tax bill.

[musicman]

Not always. If you've been underappraised, as happens from time to time, don't fight it. They can and will slap you with a higher tax bill.

Niche is right. i've also seen a few underappraisals. Usually they use the selling price but you might luck out and be underappraised.

[Heights2Bastrop]

In areas like The Heights, wouldn't the actual property values most likely rise faster than the amount your appraised value can be increased, which is 10%, right?

[lwood]

In areas like The Heights, wouldn't the actual property values most likely rise faster than the amount your appraised value can be increased, which is 10%, right?

The 10% cap is on a home in which you have filed homestead exemption. Remember that you must protest your appraisal yearly in order for the 10% cap to be in effect. For example, if one year passes and you do not protest, the second year they can raise the appraisal 20%. This came from a tax consultant so I ASSUME it is correct.

Check out cutmytaxes.com

[musicman]

The 10% cap is on a home in which you have filed homestead exemption. Remember that you must protest your appraisal yearly in order for the 10% cap to be in effect. For example, if one year passes and you do not protest, the second year they can raise the appraisal 20%. This came from a tax consultant so I ASSUME it is correct.

This is not true. If your house is homesteaded the appraisal cap is 10%/yr.

The cap should be in effect whether you protest or not.

[jm1fd]

This came from a tax consultant so I ASSUME it is correct.

It is not. The only thing I would assume about anything coming from a tax consultant is that it is biased.

[Guest Malvoe]

You are not protected by the 10% cap the first two years after purchasing a home. It sucks.

[musicman]

You are not protected by the 10% cap the first two years after purchasing a home. It sucks.

The first yr the appraisal is usually based on the purchase price. But to say you are not protected by the 10%cap for the first 2 yrs is incorrect.

[MidtownCoog]

This came from a tax consultant so I ASSUME it is correct.

That's the same story I have heard.

[RedScare]

I think the confusion is the market value, as opposed to the appraised value. If you do not protest every year, the market value is liable to jump, to make up for the years of lower appraisals. However, the taxable value (appraised value) cannot increase more than 10% annually on a homestead exempted home. It will continue going up 10% per year until it matches the market value.

[lwood]

This is not true. If your house is homesteaded the appraisal cap is 10%/yr.

The cap should be in effect whether you protest or not.

From the O'Connor and Associates web site (cutmytaxes.com) and confirmed verbally with HCAD:

Protect Your 10% Property Tax Cap

Homeowners must annually protest their property taxes to preserve their right to a 10% maximum increase in their assessed value. The Texas Property Tax Code provides that the maximum increase in a homeowner's assessed value is 10% per year times the number of years since the property has been appraised. (The 10% cap only applies to residence homesteads.) The property can be appraised either by the appraisal district setting a new assessed value, an agreement at an informal hearing, a decision by an appraisal review board or a decision by a binding arbitrator.

Many Texas homeowners will be relieved to see no increase in the assessed value for their home in 2006. However, this creates an illusionary and false sense of security. Since the appraisal district did not increase the assessed value in 2006, they can increase the assessed value by 20% in 2007, assuming the homeowner does not appeal in 2006.

Homeowners who appeal annually protect and preserve their right to a maximum increase of 10% per year. When a homeowner elects not to appeal because the value did not increase, they are forfeiting their right to a maximum increase of their property taxes of 10% per year.

[tx5050]

From the O'Connor and Associates web site (cutmytaxes.com) and confirmed verbally with HCAD:

Protect Your 10% Property Tax Cap

Homeowners must annually protest their property taxes to preserve their right to a 10% maximum increase in their assessed value. The Texas Property Tax Code provides that the maximum increase in a homeowner's assessed value is 10% per year times the number of years since the property has been appraised. (The 10% cap only applies to residence homesteads.) The property can be appraised either by the appraisal district setting a new assessed value, an agreement at an informal hearing, a decision by an appraisal review board or a decision by a binding arbitrator.

Many Texas homeowners will be relieved to see no increase in the assessed value for their home in 2006. However, this creates an illusionary and false sense of security. Since the appraisal district did not increase the assessed value in 2006, they can increase the assessed value by 20% in 2007, assuming the homeowner does not appeal in 2006.

Homeowners who appeal annually protect and preserve their right to a maximum increase of 10% per year. When a homeowner elects not to appeal because the value did not increase, they are forfeiting their right to a maximum increase of their property taxes of 10% per year.

Actually the 10% cap applies as long as the home is appraised each year - whether you protest the appraisal or not isn't relevant . Since Harris County appraises homes every year you should be protected - here's a direct quote from the HCAD website:

Prices of new and used homes in Harris County have increased substantially in recent years. In order to prevent sharp increases in home property taxes from year to year, Texas voters in 1997 approved a constitutional amendment, which became effective January 1, 1998, to limit increases in the taxable value of a qualified residence homestead. To qualify, property must be your residence homestead, and you must have received a homestead exemption in your name in both the current and previous years.

Under this law, the value for tax purposes (appraised value) of a qualified residence homestead will be the LESSER of:

the market value (what the property would sell for on the open market); or

the preceding year's appraised value

+ 10 percent for each year since the property was last appraised

+ the value of any improvements added since the last appraisal.

(The calculated value is often referred to as a "capped" value).

Because the Harris County Appraisal District reviews all residential values annually, the maximum appraised value increase on a capped homestead in any year would be 10% over the prior year value, plus value added by any new improvements made before January 1 of the current year.

[pachanga]

florida has a 3% cap on your homestead.......lets get texas on that train

[musicman]

From the O'Connor and Associates web site (cutmytaxes.com) and confirmed verbally with HCAD:

Protect Your 10% Property Tax Cap

Homeowners must annually protest their property taxes to preserve their right to a 10% maximum increase in their assessed value. The Texas Property Tax Code provides that the maximum increase in a homeowner's assessed value is 10% per year times the number of years since the property has been appraised. (The 10% cap only applies to residence homesteads.) The property can be appraised either by the appraisal district setting a new assessed value, an agreement at an informal hearing, a decision by an appraisal review board or a decision by a binding arbitrator.

Many Texas homeowners will be relieved to see no increase in the assessed value for their home in 2006. However, this creates an illusionary and false sense of security. Since the appraisal district did not increase the assessed value in 2006, they can increase the assessed value by 20% in 2007, assuming the homeowner does not appeal in 2006.

Homeowners who appeal annually protect and preserve their right to a maximum increase of 10% per year. When a homeowner elects not to appeal because the value did not increase, they are forfeiting their right to a maximum increase of their property taxes of 10% per year.

an email from paul bettencourt's office....

Whether or not you protest your taxes each year does not determine your right to the 10% per year increase. That is guaranteed by law.

Sincerely,

Ed Francis

Customer Service

Office of Paul Bettencourt

Tax Assessor-Collector

Sounds like O"Connor is using a little scare tactic.

[jm1fd]

florida has a 3% cap on your homestead.......lets get texas on that train

Oh let's not, and say we did. After all, how are we supposed to get rid of those icky poor people when the townhouses start going up?

[Guest Malvoe]

To qualify, property must be your residence homestead, and you must have received a homestead exemption in your name in both the current and previous years.

Bingo.

[heights_yankee]

an email from paul bettencourt's office....

Whether or not you protest your taxes each year does not determine your right to the 10% per year increase. That is guaranteed by law.

Sincerely,

Ed Francis

Customer Service

Office of Paul Bettencourt

Tax Assessor-Collector

Sounds like O"Connor is using a little scare tactic.

I think their scare tactic sounds a little unethical. Can they really pump out that kind of misinformation? Perhaps they just don't know their a$$ from the tax code?

[musicman]

I think their scare tactic sounds a little unethical. Can they really pump out that kind of misinformation? Perhaps they just don't know their a$$ from the tax code?

Yeah it would be interesting to see just how much they make for each protest.

[meens]

After seeing Heights property values skyrocket the past few years, and Timbergrove, Garden Oaks, and Oak Forest now starting to increase in value, I'm wondering if you think that the Heights market can grow anymore. Is it almost tapped out? Or do you think the sky's the limit?

[TheNiche]

After seeing Heights property values skyrocket the past few years, and Timbergrove, Garden Oaks, and Oak Forest now starting to increase in value, I'm wondering if you think that the Heights market can grow anymore. Is it almost tapped out? Or do you think the sky's the limit?

Think of it this way: there are places in West U where 50'x105' lots are now upwards of $80psf. This is the case because there is a scarce resource that is being rationed to the very few people at the very peak of the demand curve that can afford the good. But the good has many substitutes, albeit imperfect. Those who cannot afford West U are priced into Bellaire. Those that cannot afford West U/Bellaire are priced into other neighborhoods of similar character. The Heights is among them.

To my knowledge of the Bellaire market, which is effectively limited to the western portion and Richmond Place, about two thirds of lots have recent construction on them now. Demand for those lots, meanwhile, is steady. At this rate, Bellaire would re-build out within 10 years if not sooner, but that doesn't mean that the demand will disappear...unless the economy tanks.

[heights_yankee]

Think of it this way: there are places in West U where 50'x105' lots are now upwards of $80psf. This is the case because there is a scarce resource that is being rationed to the very few people at the very peak of the demand curve that can afford the good. But the good has many substitutes, albeit imperfect. Those who cannot afford West U are priced into Bellaire. Those that cannot afford West U/Bellaire are priced into other neighborhoods of similar character. The Heights is among them.

To my knowledge of the Bellaire market, which is effectively limited to the western portion and Richmond Place, about two thirds of lots have recent construction on them now. Demand for those lots, meanwhile, is steady. At this rate, Bellaire would re-build out within 10 years if not sooner, but that doesn't mean that the demand will disappear...unless the economy tanks.

the Heights attracts a lot of people who are being priced out of Montrose- who would not want to live in West U or Bellaire. We wanted the Heights either way, but it was definitely more bang for our buck than we would have gotten had we stayed in our Monstrose neighborhood.

I think that an additional factor that will continue to add to value here is that a lot of young couples who used to think Pearland or The Woodlands was a haven are now finding that they would rather forgo sq footage for a shorter commute. These people tend to be moving to the Heights as well- from the burbs rather than the higher real estate in other parts of the inner loop.

[TheNiche]

the Heights attracts a lot of people who are being priced out of Montrose- who would not want to live in West U or Bellaire. We wanted the Heights either way, but it was definitely more bang for our buck than we would have gotten had we stayed in our Monstrose neighborhood.

I think that an additional factor that will continue to add to value here is that a lot of young couples who used to think Pearland or The Woodlands was a haven are now finding that they would rather forgo sq footage for a shorter commute. These people tend to be moving to the Heights as well- from the burbs rather than the higher real estate in other parts of the inner loop.

Yep, you were second-wave Heights residents...but your type is giving way now to the third wave. And they're the ones driving land values now. They're the ones typically buying McMansions, too. And the young couples are the ones supporting townhomes.

[heights_yankee]

Yep, you were second-wave Heights residents...but your type is giving way now to the third wave. And they're the ones driving land values now. They're the ones typically buying McMansions, too. And the young couples are the ones supporting townhomes.

Right- but the question is can the value of land in the Heights continue to grow and it definitely can. This 3rd wave is driving the values and, for the most part, driving them up.

I do have to say, while I know the townhouse epidemic is fueled mostly by young couples, I know a lot of 40+ divorcees and empty nesters in townhomes. There are also many young couples in my neighborhood in bungalows as well. Hell, I'm only 34- I am still young too! Point: it's not as black and white as it was a couple years ago. It's a damn housing free for all.

[TheNiche]

Right- but the question is can the value of land in the Heights continue to grow and it definitely can. This 3rd wave is driving the values and, for the most part, driving them up.

I do have to say, while I know the townhouse epidemic is fueled mostly by young couples, I know a lot of 40+ divorcees and empty nesters in townhomes. There are also many young couples in my neighborhood in bungalows as well. Hell, I'm only 34- I am still young too! Point: it's not as black and white as it was a couple years ago. It's a damn housing free for all.

Agreed. Just better hope for economic vitality. If oil continues to plummet, we're all going to have problems.