HCAD Appraised value vs. Purchase Price - what should I expect to pay taxes on?

[modster]

Westres is right about the postcard. Do NOT fill it out, throw it away.

As far as the agent terminating the listing so the sales price isn't shown, probably not going to happen. HAR has rules against that with hefty fines.

I am really not sure if HCAD has access to HAR or what they do. If they catch the sale they could bump you up to the sales price. It is kind of a gamble. The first year they can bump it as much as they want, after that if your homestead exemption is in place then there is a 10% cap.

As far as the values on HCAD, you can put very little stock in them. I have said this over and over. They have everything to do with how well you fight your taxes and very little to do with real values.

[citizen_jane]

We bought our house in 2003 and the HCAD value was about $70K below the sales price (HCAD was about 80% of sales price). The house also had a small addition that was not accounted for in the HCAD sq ft. I don't remember ever getting a card but I probably would have ignored it too. About 6 months after we moved in, an appraiser showed up at my door and asked for permission to measure the outside square footage and look around. I agreed. We had just started digging a pool also but it was not finished. I thought our appraisal value would be at or above the sales price at that point due to the increased sq ft and the pool. When I got the new value it was higher but still considerably lower than the sales price. The new sq footage and pool were also noted.

My HCAD value increased every year until 2008 when the HCAD value was the same as our 2003 sales price. My most current HCAD apprasial went down to the value the house was at when we bought it in 2003! I think it's because we've had 2 foreclosures near us. I also think my appraised value was low because the house was in foreclousure about "2 owners ago". Someone bought it low then gutted and remodeled it.

[EasilyAmused]

You do realize that HCAD knows your purchase price these days.The have all the MLS pictures and data right there on their Cpu. They also have a Satellite that zooms right above your house, you can see this when you go and protest. It's maddening.

My house in now over purchase price. They pretty much hit our whole subdivision for the full 10% from what I can tell.

[Txgal33]

We actually are in the opposite spectrum. Our new home is appraised at almost $90,000 more than our purchase so we will be protesting come the beginning of the year.

From what my hubby said you basically just say nothing and wait to see if they notice. Most cases they do not. Eventually ya but not for a few years.

[Dougishere2]

Originally Posted by Txgal33

We actually are in the opposite spectrum. Our new home is appraised at almost $90,000 more than our purchase so we will be protesting come the beginning of the year.

From what my hubby said you basically just say nothing and wait to see if they notice. Most cases they do not. Eventually ya but not for a few years.

All you have to do in this case is make a copy of your HUD you signed at closing and be rewady for HCAD to ask for it. They will use this to determine your price you paid and will automatically come down to that price.

[Dougishere2]

Everyone should use a company at this time of year to protest your taxes every year for you. I used to protest my taxes every year in Fort Bend County and it is such a pain to deal with. Last year I used a company to protest my taxable value and they reduced my taxable value by $6200.00. My cost to have this done was only $90.00. Now this year Fort Bend CAD has gone up on the value of my home by $8250.00. I am curious what will be the ending result.