Win Your Next Texas Property Tax Appeal: 10 Basic Steps
First – Know the facts
You are more likely to be successful with your property tax appeal if you find factual errors on your property tax record, also known as an “assessment card.” Errors in real estate appraisals, such as errors about the age of improvements or incorrect square footage measurements, are not uncommon.
After you file a Notice of Protest, the appraisal district will schedule an informal meeting with one of its staff appraisers. Bring any proof of your case to the appointment in the form of photos or other documentation that supports your claims. The appraisal district should keep your evidence for its records, so remember to bring extra copies.
Understand how your home has been appraised
Harris County Appraisal District [HCAD] you have over a million single-family residential properties to appreciate. Montgomery Central Appraisal District [MCAD] has the responsibility of assessing about 250,000 people. The grim reality is that there are not enough well-trained appraisers to go around.
In the real world, appraisal district employees sometimes can’t inspect much beyond new construction or additions. Even when properties are inspected, the examination can be little more than a drive. It is now more common for appraisal districts to rely on aerial pictometry for various aspects of property inspection. The level of technology resources now available to most appraisal districts is impressive.
Given the overwhelming number of properties that must be reappraised, these appraisal districts rely on computerized mass appraisal models. The mass assessment models used by counties are inevitably flawed, although some are better than others. Your search will be to determine the ways and degree to which your property and neighborhood do not quite fit the model.
You can ask a real estate agent to help you find some comparable homes and their actual sales prices. Most good agents don’t mind helping you, because you might just work with them later. Remember that you want to be able to show that your home is in worse condition than comparable sales. Try to compare your house with the best in your neighborhood. If you can find information on better homes that sold below their appraised value in the past year, you may have grounds for a reduction.
Research the value of your neighbors’ homes
The easiest way for most homeowners to develop an appeal is to use the sales to market value comparison approach in your appeal, however, sales do not always favor your case. Another angle you can try is to determine if your home has been appraised “evenly and equally” to other similar properties in the same neighborhood.
Check to see if the assessed value of your home in the district is equal to or less than the median tax assessed value of other homes in your neighborhood. Texas appraisal districts will make this information available online through their websites.
Obtain Evidence from the Appraisal District
Along with your “Notice of Protest,” submit a written request for all evidence the appraisal district used to value your home and intends to submit to an Appraisal Review Board. [ARB] audience. It is also known as House Bill 201. [HB 201] package. Please review this information to determine how the appraisal district determined the value of your home. This may uncover the deficiencies of the appraisal district’s case.
Don’t lose hope: you have little chance of getting it right
If you are unable to resolve your case in person with a staff appraiser in an informal conference, the next level of administrative appeal is a formal Appraisal Review Board. [ARB] audience. Montgomery Central Appraisal District [MCAD] you will have your formal hearing the same day. You are immediately escorted down the hall and shown to the waiting room to present your case. Harris County Appraisal District [HCAD] will reschedule you to come back to his office another day for a formal hearing. You will almost always have to wait two weeks.
The ARB hearing will be like a smaller courtroom where you present your case. An experienced senior appraiser will represent the case on behalf of the appraisal district. A panel of at least three appraisal review board members, supposedly impartial, will hear the case and make a final decision. Important Warning: The ARB has the authority to INCREASE the value of your property, so consider this risk. Also, don’t forget to bring extra copies of all your tests (five total) for the appraisal district and ARB panel.
If your formal ARB hearing is unsuccessful, you may still have two additional options available to you. For residential property valued at less than $1 million, you may file a request for binding arbitration through the Texas Office of the Comptroller of Public Accounts. There are fees of either $250 or $500, depending on the level of involvement in your case. The other option is to file a lawsuit in district court against the appraisal district. Since both procedures are time consuming and expensive, you will need to decide if they are practical for you.
Get Started – 10 Action Steps
1. Get a copy of your property tax record or “assessment card.” Texas appraisal districts will have this information online through their websites. If you can’t find it, call the appraisal district office for help.
2. Review the appraisal record for errors in your favor.
3. Find out if you are eligible for any special exemptions and apply. Some examples are the general homestead exemptions for family, over 65, disabled or veterans.
4. Submit a “Notice of Protest” before the legal deadline. This is usually on May 31 or within 30 days of mailing your “Notice of Appraised Value.”
5. Study the appraisal district evidence, HB 201 packet.
6. Try to get help from a real estate agent to identify the details on good comparable sales (…and remember who helped you every time you have a paying real estate transaction).
7. Take photos of your house and the other properties you are using to compare. If you don’t have a good camera, borrow one; or ask a friend to help you.
8. Take detailed written notes about what you think the correct value should be and the reasons for the reduction. Prepare your presentation and be able to show proof to support your claim. This must consist of factual evidence, such as dated photos, recent sales documentation, and appraised values from neighbors.
9. Be courteous and respectful to other appraisal district personnel and ARB members. Never forget that they are also human and have feelings, just like you. Remember the time-tested expression: “You can catch more with honey than with vinegar.”
10. If you think it is in your best interest, appeal your case to a formal ARB hearing. However, this can be a roll of the dice. Depending on the composition of the panel and your mood on the particular day of your hearing, your ordeal could be more favorable or even worse.
If all of this sounds like a lot of effort, there is another way to help ensure that you get the best possible result. You can have a property tax assessor prepare and present your case, providing you with professional representation at appraisal district hearings. You can get the benefits of this service on a contingency basis, so it won’t cost you anything unless you actually save money, which you would have paid in taxes.