Fighting the HCAD appraisal value on a house you just closed on (short sale, foreclosures) - Houston - Texas (TX) - City-Data Forum

AlexTx · 01-21-2009, 02:34 PM

I have a coworker who just closed on a house that has a HCAD appraisal value that is quite a bit higher than what she paid for the house. How soon can she fight the appraisal value? Will she be stuck paying the higher tax amount for her 2009 taxes?

Is there a certain cut off point like, if you close by March 1 you can still fight the 2009 appraisal value for your 2009 taxes? Or will she be stuck paying more this year and can fight them for 2010?

I think they made her already pay some of the 2009 tax at closing.

Thanks!

davidtk · 01-21-2009, 03:00 PM

Toward the end of the year, each homeowner will receive a notice with a proposed assessed value for the following year. The notice also provides a deadline by which you can file a protest. I believe this is the only mechanism to dispute your property value. Unfortunately for your coworker, the time to dispute 2009 values is already over, so they will have to wait until the end of the year and try to reduce their 2010 value.

AlexTx · 01-21-2009, 03:13 PM

Thanks, so to make sure I understand:
When I get all the letters in the mail around March/April (I think that's when I get them) from companies wanting to fight my property's value and lower my taxes, that is really for 2010 and the amount I will pay at the end of 2009 is already decided. Is that right?

So why doesn't HCAD show a 2009 value on their website yet?

When is the deadline for her to fight the value for 2010? Is it too early to do now?

Sorry for all the questions, something isn't clicking with me.

Poltracker · 01-21-2009, 03:49 PM

Quote:

Originally Posted by davidtk

Toward the end of the year, each homeowner will receive a notice with a proposed assessed value for the following year. The notice also provides a deadline by which you can file a protest. I believe this is the only mechanism to dispute your property value. Unfortunately for your coworker, the time to dispute 2009 values is already over, so they will have to wait until the end of the year and try to reduce their 2010 value.

That is incorrect. We just finished paying our 2008 taxes. The appraisals for 2009 will come out in April and your friend will have until May 31st (or 30 days from receipt) to file a protest. There will be an informal hearing then a formal hearing if needed. If they use the E-protest system, the "infomal hearing" may come in the form of an offer through the mail. If your friend payed less than the appraised value (closing in 2009) and the property was not a distressed sale (foreclosure, short sale etc.) they will probably have a good chance and getting the value lowered.

davidtk · 01-21-2009, 03:52 PM

I may be a little off on my timing, so maybe the upcoming notices are for 2009, not 2008 as I was thinking. If that's the case, then your friend still has a chance to dispute for 2009. In any event, I think the best thing to do is call the appraisal district.

davidtk · 01-21-2009, 03:55 PM

What Poltracker said. I was one year ahead. DOH!

AlexTx · 01-21-2009, 03:56 PM

She did buy a foreclosure but the person that got foreclosured on was an investor that bought in the peak of the market and overpaid (in my opinion anyway).

Poltracker · 01-21-2009, 04:01 PM

Tell your friend to give it a try. The process is really pretty painless, I managed to get a good reduction this year at my formal hearing.

modster · 01-21-2009, 04:31 PM

If they go in with their settlement statement from closing they should be able to get it reduced to that amount very easily. They will need to go to Harris County Appraisal District and download the form to protest the taxes and submit it before May 31, (as someone already said).

One thing, if they purchased a foreclosure, that won't work. HCAD claims that if it is a foreclosure it is not an "arm's length transaction" and is more of a distressed sale and doesn't consider the sales price reflective of the true value.

This has caused real problems for people who bought foreclosures that were part of the mortgage fraud problems, (ones that sold previously for inflated prices that they were never truly worth, with HCAD jumping the value to the last sales price). Go figure.

Jamesww · 01-21-2009, 04:43 PM

Just so you know you will need to have 3 different comparables as just the house your friend purchased is not enough to dispute the HCAD appraisal value. You also need to approach the governing bodies in a positive manner. My broker helps people fight their tax appraisals every year. I think I will help clients out this year as well. I have checked tax rolls and some people are paying way to much.