Dcad bumped up my home price significantly for 2014 (Dallas, Plano: real estate market, new house)

[ritholtz]

Originally Posted by frenzyrider

Is it still below your purchase price? If I remember, you bought last year. If the purchase price is below valuation, you can take your final HUD to bring it down...

2014 value is similar to bank appraisal value and what we paid. But our price includes extras which can be argued for around 20k . Dcad value is 430k for 2012 at the time of our purchase. They reduced 2013 value to 410k from 430k (2012) after our purchase. Do you think, they increased 2014 value based on our purchase price. Every home value went up in our street/community by 8%-10%. Mine is at upper bound. I will check with property agent and see if we can argue about affect of surrounding town homes on my house value.

[FalconheadWest]

Remember, you can file arbitration if you don't like the results from the informal or formal hearings and ARB... If you're right, you only lose $50 for processing and the CAD has to choke on the bill for the rest.

Though, seeing as I'm one of the Arbitrators that get randomly picked (unless a home owner specifically puts my name down), I would have to say it's about 50/50 on who comes out ahead. Some home owners have great evidence, and others haven't a clue. But great evidence doesn't always mean you come out ahead if the CAD evidence is also convincing.

I lived in the Dallas/Richardson area for 25 years and did real estate up there for 8 1/2 before moving to Austin. I'm well aware of the market in the area.

[ritholtz]

Originally Posted by matteo81

You could always sell your home and purchase a cheaper property if you don't want to pay higher property taxes. If there is new construction in your area, even construction that is below your current property, it's indicative of a market that values your home's location.

I was actually thinking about this few months after my home purchase. I went over my budget. Decided to ride our for few more yeas and analyse my purchase decision again. Received a great support and feedback here during that time. If house values keep going like this for few more years, I am going to look for alternatives.

[BigDGeek]

Yay, expecting some fun from DCAD in my mailbox soon. Haven't gotten mine yet but it hasn't gone up since I won my appeal against the last increase. Good thing I know a realtor. If they increase it, I plan to fight. Worst that could happen is they'd say "no."

[frenzyrider]

Originally Posted by ritholtz

2014 value is similar to bank appraisal value and what we paid. But our price includes extras which can be argued for around 20k . Dcad value is 430k for 2012 at the time of our purchase. They reduced 2013 value to 410k from 430k (2012) after our purchase. Do you think, they increased 2014 value based on our purchase price. Every home value went up in our street/community by 8%-10%. Mine is at upper bound. I will check with property agent and see if we can argue about affect of surrounding town homes on my house value.

Again. If your purchase price is above the valuation then you will have to be creative (take area comps) to prove the value is below what they suggested. However, if your purchase price is below the value then the HUD statement is a concrete one... I don't think they can know your purchase price unless you voluntarily provided for it. However, they can know your loan amount and make an educated guess what the purchase price might be. In reality, they probably just did a comp of the area.

[BigDGeek]

FWIW, when I appealed (and won) my valuation, the guy who claimed he had personally laid eyes on the property in order to appraise it for tax purposes was soundly busted by me and the other people in the room. They actually laughed at him and told him he sucked at his job. He had to admit that he lied and did not personally see it; he looked at a photo of it on Google Maps.

[MStreetClassics]

The value of the house I bought last year has increased in each of the last 3 years according to DCAD. They just bumped it up by $44,700 to just $700 less than what I paid.

[frenzyrider]

in another news, Zillow is becoming crazy!

[seat21d]

Yowsers, my land value went from $15 sq/ft to $25 sq/ft. It's going to be hard for the tax agent to protest that one since the improvement value is way down but the overall value is way up.

[Restrain]

Depending on where you are, MLS shows increases from 8% to over 15% over the last year.