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Old 05-28-2014, 08:47 PM
 
55 posts, read 223,879 times
Reputation: 33

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My wife and I just closed on a property within Collin County today. As we were signing the documents, the escrow officer told us that our taxes would be increasing substantially next year as the sale price was $110K higher than the tax appraisal on our property. She calculated our property taxes based on our sales price and told us that our taxes would increase by $2700! $6500 to $9200!!!

After the closing we asked our real estate agent about the escrow officer's claim and she told us not to worry because the state of Texas was a non-disclosure state. She told us that the only people that know the sales price are the appraisers and the real estate agents.

After lunch we went back to the title company to pick up our keys and insisted on seeing the escrow officer again for clarification on this issue(also to make sure she wasn't voluntarily submitting information to the county). She was busy on another closing, but there was another agent who happened to be there and was on some tax appraisal monitoring board in Collin County. He told me that in the past year there was a ruling where any MLS listings would require to report the final sales price to the county!!! This pretty much invalidates any notion of Collin County being non-disclosure.

He told me that the maximum increase per year for property tax was 10%. So that gives me a few years to prepare for $9200. And he told me that my tax appraisal would actually be based on some kind of formula based on the neighborhood/radius your in. Considering my house price is in the high end of the neighborhood, I'm guessing that my tax appraisal will be slightly below my sales price.

Can anyone on this forum clue me in on what exactly will happen? Or how it works now? This is a recent change. Also is there anyone fighting this ruling? I'd like to join any lawsuit if it exists. State law should supersede county law.
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Old 05-28-2014, 09:17 PM
Status: "The 2nd most Interesting Man" (set 2 days ago)
 
Location: DFW - Coppell / Las Colinas
35,344 posts, read 38,769,849 times
Reputation: 42304
Quote:
Originally Posted by MovingCouple View Post
She told us that the only people that know the sales price are the appraisers and the real estate agents.
County does not supersede State law. All appraisal districts are jacking up appraisals and will continue as long as we are in this hot inflating market.

Appraisal Districts hire LICENSED Appraisers who have access to MLS systems. (despite many who say they don't) I was at DCAD a few years ago and they showed me the sales figures from the MLS for my area.

Good news for your seller and you is prices are going up. Bad news is CCAD will know about it.
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Old 05-28-2014, 09:20 PM
 
12,199 posts, read 23,114,652 times
Reputation: 11182
The appraisal districts know how much you paid - if in MLS- or guess at how much you paid based on the mortgage taken out if private sale. It's legal and it happens.

You can fully expect your tax appraisal next year to match the sales price (or more if the market keeps going up) and your taxes to increase the full amount. The 10% max rule doesn't come into play until you file your own homestead exemption. Once the seller's homestead falls off, the CAD can raise your tax value be $10M - and tax you for it- if they want to.
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Old 05-28-2014, 09:22 PM
 
Location: On the golf course
257 posts, read 544,095 times
Reputation: 402
Per the change to MLS guidelines, all sales prices must now be reported provided the MLS does not provide the information to the general public. Also, the "z" sale provision has been removed.

The non disclosure statute really was intended to apply only to deeds. In the state of Texas, most deeds will show "$10 and other consideration". Your deed of trust will also be filed with the county and will include your loan amount.

Collin County will reappraise your property in 2015 at a number close to the purchase price. One thing the agent failed to mention to you is that the 10% cap only applies to residence homesteads. Your taxes will be based on the market value assessed as of 1/1/15 and you will not be eligible for the 10% cap until year 2 of your homestead exemption. A purchase resets the effective 10% cap and the district reassesses accordingly.

Your realtor should have told you all of this prior to closing on the property.
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Old 05-28-2014, 09:56 PM
 
55 posts, read 223,879 times
Reputation: 33
Hearing all this information now I should have purchased in Plano where the tax rate was lower. Also I should have focused on FSBO because I was putting a huge down payment anyway.

Is there any way to fight this? I think many buyers will be in shock and revolt when the tax appraisals come in.
I don't understand how my tax appraisal will come to $360K and the neighbor next door with the same house will have a tax appraisal of $250K. It doesn't make sense.

So the 10% limit will only apply after the huge adjustment is already made? So that 10% cap will be pretty much useless in my case? And if I bought 2-3 years ago(before the MLS guidelines changed), I would not have dealt with this BS? Unbelievable.
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Old 05-28-2014, 11:07 PM
 
31,678 posts, read 49,146,674 times
Reputation: 17427
You paid the price--you can't say your house isn't worth what you paid for it...
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Old 05-28-2014, 11:57 PM
 
2,283 posts, read 3,240,635 times
Reputation: 3672
Quote:
Originally Posted by MovingCouple View Post
Hearing all this information now I should have purchased in Plano where the tax rate was lower. Also I should have focused on FSBO because I was putting a huge down payment anyway.

Is there any way to fight this? I think many buyers will be in shock and revolt when the tax appraisals come in.
I don't understand how my tax appraisal will come to $360K and the neighbor next door with the same house will have a tax appraisal of $250K. It doesn't make sense.

So the 10% limit will only apply after the huge adjustment is already made? So that 10% cap will be pretty much useless in my case? And if I bought 2-3 years ago(before the MLS guidelines changed), I would not have dealt with this BS? Unbelievable.
Then you use the disparate appraisals and protest yours.
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Old 05-29-2014, 05:02 AM
 
Location: North Texas
24,576 posts, read 34,243,351 times
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Quote:
Originally Posted by loves2read View Post
You paid the price--you can't say your house isn't worth what you paid for it...
Yup, pretty much...welcome to Texas.
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Old 05-29-2014, 06:22 AM
 
55 posts, read 223,879 times
Reputation: 33
Correct me if I'm I wrong - this MLS reporting adjustment occurred within the last year. So this drastic change in property tax appraisal value would not have occurred 2-3 years ago?
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Old 05-29-2014, 06:27 AM
 
31,678 posts, read 49,146,674 times
Reputation: 17427
We purchased a "used" home in Tarrant county about 5 yrs ago--
it was not a foreclosure or distressed sale by builder like other homes in neighborhood had been--
the price we paid became the next year's valuation--I know our realtor didn't turn anything over--so probably the title office--don't know any disclosure rules specifically though..

now I know we could not have sold that home the next year--09--for what we paid for it--
we couldn't sell it now in much better market for what we paid for it IMO
but my husband just doesn't believe we could get a lower valuation accepted...
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