Protesting Property Tax is Assessed Value < Paid Value (Howe: houses, buyer)

[zuozuo9192]

Has anyone had luck protesting their taxes if your assessed value is actually less than what you paid for a new construction by just a little? Also, comps in the area would actually suggest assessed value is in line to maybe slightly below market value. I just always thought your assessed value in the first year for a new construction should be much lower than the paid price (excluding when it's only being assessed on the value of the land). Otherwise, the 10% increase on the assessed value adds up quite a bit in the first few years.

[huma281]

My assessed value is a little more than what I paid...trying to protest it. I did the iSettle? thing online and it didn't work. They said they would schedule me for a hearing.

[KatieKennedy]

Just take your closing statement to the hearing. They should come down to at least what you paid if not below. However, what you paid is the market value, Willing buyer/willing seller. You can take other comps and maybe they will come off a little more. Or hire a tax protest firm.

[jasonamd]

If your appraised value is already less than your purchase price and other houses in the area are comparable with yours then you probably won't have much luck.

Not sure where you got that new construction should be a lot less in the first year. It will be assessed at whatever they think it is worth. It doesn't automatically go up 10% each year. My house has been the same value for the 4 years since it was built.

[trbstang]

Since you paid more than the appraisal and there is no real difference to your neighbors to argue unequal appraisal, about your only option would be one of the tax services to try and get it dropped, but it might not be much if at all. And jasonamd is correct about the value not automatically going up 10%. The 10% is the maximum they can raise it per year if you have the Homestead exemption filed. FWIW, our home was appraised the second year at about what the base home cost, before any of our upgrades ($~37K). It took them several years to raise it to what we paid for the house, and then I started protesting every year since then.

Good luck!

[Meyerland]

Use a company that protests for you. They are free to use if they don't get any money knocked off, you pay them half of the savings.

They are pretty effective and we have gotten money off every year.