Is there any relationship between a home's purchase price and the property tax levied? (Houston: sale, real estate)

[Zhang Fei]

I see quite a few Houston homes where the listing price is below the assessed value. Does the assessed value go down to reflect a lower purchase price if that transaction is completed?

[CDeb]

It should. The assessed value should reflect the fair market value of the house. A sale price is the best determination of that.

We purchased a home in 2009 for slightly less than the 2008 assessed value. The 2010 assessed value was lowered to reflect that.

[modster]

You have to file to get your reduction. They don't just do it automatically.

[crone]

When the time is right, file a protest, take your papers to show you payed less. It will be adjusted. I protested. Told them I was flim flammed into paying too much by a slick real estate agent. They knew what I paid, but dropped the value $35000. Every little bit helps.

[stan4]

Z out the sale and don't tell 'em what you paid.
Then they will actually have to be fair and use their brains to assess your home.

If you paid less than the last tax statement, OTOH, make sure they know it!

[testmo]

when you are prepared to sell your home doesnt the new buyer/their agent check for times the owner of the home argued to the home being worth less than assessed? wouldnt that look really bad? i know in my process of buying my home that came up at some point

if not id look into doing this myself. my house is taxed a LOT more than the neighbors from the numbers im getting. house is updated to look pretty, but the bare bones (the $$$$ stuff) is the same

[crone]

HCAD only knows one way to do it. We get the lowest price in the subdivision and tell them that's the comp. Generally, they lower the value. One guy paid 365. The foreclosure across the street went for 290. He got his down to 290. So did we.
In mature subdivisions, HCAD value has no basis in reality. Most real estate agents are keenly aware of that. It is a lot easier in unincorporated areas because permits are not required by the county. Who knows about the interior.

[modster]

Originally Posted by crone

HCAD only knows one way to do it. We get the lowest price in the subdivision and tell them that's the comp. Generally, they lower the value. One guy paid 365. The foreclosure across the street went for 290. He got his down to 290. So did we.
In mature subdivisions, HCAD value has no basis in reality. Most real estate agents are keenly aware of that. It is a lot easier in unincorporated areas because permits are not required by the county. Who knows about the interior.

Amen to that.

One thing when protesting, normally if the HCAD person realizes that you are using a foreclosure sale to argue down your value, they won't accept it. They usually take the position that a foreclosure is not an "arm's length transaction" but instead is a distress sale and therefore not a valid comp. I don't agree with it, but that is what they usually do. If you got yours down using foreclosures, you were lucky.

[elnina]

I am not sure if this is only my subjective impression, but I noticed that if you protest, they might lower your taxes (house price) for a year or two, but after that they appraise it again, and "adjust" the price so, that they get it all back, and more...

[modster]

Originally Posted by elnina

I am not sure if this is only my subjective impression, but I noticed that if you protest, they might lower your taxes (house price) for a year or two, but after that they appraise it again, and "adjust" the price so, that they get it all back, and more...

If you are homesteaded, then you have a 10% cap they can raise you each year. Right now HCAD is not so aggressive at raising, but lowering every chance you get is important. When things get rolling in the market again, whenever the hell that is, HCAD will be slamming everyone the max they can more aggressively than they are now.