Moving back to Austin for a job and horrified at the real estate market. Any areas that are not going crazy right now? (Early: buying a home, buying)

[Austin97]

Originally Posted by riaelise

This has to be a typo in my neighborhood a home listed for 675k just closed at 875k. The purchaser had a relocation specialist realtor which makes me think it was in fact purchased by an out of state purchaser that thought nothing of spending that much...

If that sales price is true it raised the ceiling of the neighborhood and we are going to get plundered by Wilco cad this year and years to come.

your value doesnt matter as much as you think.

1) wilco does appraisals
2) taxing entities set their budgets
3) based on that they set the tax rate to raise the amount they need in their budgets.

If their budgets stayed constant, but your value went up, your rate would drop and you would still pay the same tax.

What matters is how much you go up relative to your neighbors. If everyone increases by the same %, then their taxes relative to each other stay the same.

[Bp25]

Originally Posted by Austin97

your value doesnt matter as much as you think.

1) wilco does appraisals
2) taxing entities set their budgets
3) based on that they set the tax rate to raise the amount they need in their budgets.

If their budgets stayed constant, but your value went up, your rate would drop and you would still pay the same tax.

What matters is how much you go up relative to your neighbors. If everyone increases by the same %, then their taxes relative to each other stay the same.

Then there is Travis county and city of Austin, who will raise the tax rate on the top of higher appraisals just because they can, and there will never be a shortage of pet projects to fund.

[Trainwreck20]

My tax RATE (in the city limits of Austin) has gone down every year for 10 years, at least.

[chitown50s]

Mine too.

Bp25 is just making up nonsense.

[riaelise]

Originally Posted by Austin97

your value doesnt matter as much as you think.

1) wilco does appraisals
2) taxing entities set their budgets
3) based on that they set the tax rate to raise the amount they need in their budgets.

If their budgets stayed constant, but your value went up, your rate would drop and you would still pay the same tax.

What matters is how much you go up relative to your neighbors. If everyone increases by the same %, then their taxes relative to each other stay the same.

Yeah, you're right... I admit my unfamiliarity with the nuances of property taxation.. but it always seems like the more the appraised value, the more things go up and the county/city budgets rarely seem to be constant..

[riaelise]

900k in East Round Rock, in a sister neighborhood ...

https://www.realtor.com/realestatean...4_M76509-32783


while nice, for 900k i'd expect more customization and not a tract home. that's how bad it is.

In Walsh Ranch, in West Round Rock, there's a 1.05 million dollar home that is currently pending. Zones to nice schools and is 4800 sq ft, but again for that amount I'd expect views and not a tract home, sandwiched between other homes and builder sized trees...

the appraiser and I were just discussing how people who didn't want to sell before are strongly contemplating selling so that they can get a huge windfall...the only problem is that whatever you make you'd have to use as a downpayment on the next inflated home...meaning, a 400k home is now 600k and up. All of this made me really appreciate buying when we did because as dated as it was trying to get a similar home now would be really expensive and we'd be competing against way too many people..

[eqshadimar]

Originally Posted by riaelise

900k in East Round Rock, in a sister neighborhood ...

https://www.realtor.com/realestatean...4_M76509-32783

Wow! Built in 2007 and 2020 apprised value of $586K..

[CarnivalGal]

Originally Posted by eqshadimar

Wow! Built in 2007 and 2020 apprised value of $586K..

Tax appraised value is wildly inaccurate.

That house is actually right around my friend's house. I'm not totally surprised by the price, seeing as it is 4800 square feet.

[Austin97]

Originally Posted by Bp25

Then there is Travis county and city of Austin, who will raise the tax rate on the top of higher appraisals just because they can, and there will never be a shortage of pet projects to fund.

no they set the budget, if they are going to spend money as you say it will be in the budget. They dont just set some random rate to get as much as they want. They have to approve the budget and now the legislature capped them at 3.5% increases

[Austin97]

Originally Posted by CarnivalGal

Tax appraised value is wildly inaccurate.

That house is actually right around my friend's house. I'm not totally surprised by the price, seeing as it is 4800 square feet.

at a tax value of 500K that is essentially $100/sq ft. definitely cant build for that much. The 900K price is about 187/sq ft. which seems reasonable.

My parents built new in leander last year. 550K for 3400 sq ft which is extremely low.