I closed on a HUD foreclosed property recently in Texas, and am currently in the stages of getting it refinanced. The appraiser was out yesterday and said it appraises for $130k. The county’s tax assessed value for 2005 (which they recorded in April/2005) was $137k. Is there any way I can get the tax assessed value lowered to $130k? If so, how? I’m looking to hold onto this property long term, and would like as much cashflow as I can get from it. Thanks!
You can try and sometimes it even works, but it is hardly worth the hassle, especially on so small a difference.
If you want to try, just contact your local planning and development office and ask them how to protest your assessed value.
All places are a little different, but some usual guidelines are that you must have at least two appraisals done (sometimes by tax official approved appraisers), and they must be within a certain dollar amount (example $5-10K) or they’ll be thrown out. Also, the averaged value must be within a defined dollar amount off of the tax value before they’ll change it. Again, a $5-10K difference is usually not enough.
As I said, all places collect a little differently, but most that I know of base it off of a per $100 of value. Here, for example, it’s roughly $1 for every $100 tax accessed value (within the city). So, using your number, that would save you about $70 a year in taxes, while you’ll have to spend about $600-700 (2 appraisals) upfront. It’ll take you ten years to recoup your costs, and most locales don’t wait ten years between re-assessments.
Just my opinions
“You can try and sometimes it even works, but it is hardly worth the hassle, especially on so small a difference.”
After a decade & a half in this business I believe the Tax Assessor’s are learning a new, cute trick.
That’s to say; as we taxpayers tell em to get out of our pockets…they’re learning to over assess our properties just enough to put more of our hard earned accumulative $$$'s in their coffers, and yet–create a situation in which it’s not worth our individual efforts to protest this petty injustice.
You got to take your hats off to em…this was ingenious!
property tax is very un-american.
Thanks for the info.
For this particular property, the tax rate is 2.36%, so it translates to roughly $165/yr (or almost $14/mo). Still, it’s not a lot but it would cover the HOA fee. ;D
The good news for buy-and-holders in Texas is they recently passed a bill in special session that should lower the property tax. I’ll believe it when I see it, though.
You will be sent the new 2006 tax value notices in April I believe and have until May 31st to protest the new values. You do not have to have appraisals. First you will have an informal hearing and them a formal one if need be. I have had different responses visiting these folks. One year I got every dollar asked and one year they were stubborn and did not budge. They have a lot of information at their fingertips sometimes pages of comps in an area. They are good at what they do. Once I took a copy of the closing papers in and showed what I paid and they lowered the value to the number and the next year on another property I did the same and the answer was that I got a super deal and did not change the value.
There is nothing you can do this year. Wait until next year and try yo lower it if you feel it is still too high. It may be a great learning experience and should take less than an hour of your day.
It is like protesting a nasty divorce by the time you win it will cost you more time and time is money then what its worth!!! by the time it is done that 7k will be added in equity over the year it will take I say ahhh its just 7k OH WELL!! Yesterday is history tomorrow is mystery what am I going to do today to make up for this 7k!!!
Hope this helps have a great one Robb!!