2017 DFW County Appraisals & Assessments Thread (Richardson, Frisco: lender, buying a house, buying)

[TurtleCreek80]

Originally Posted by Waterdragon8212

Anyone know if there is a deadline to file for a homestead exemption on a newly purchased home once tax appraisals/assessments have already come out? My sister and her husband just bought a home in December and just received their tax appraisal yesterday. The deadline to protest is May 31st, but they haven't yet filed a homestead exemption (it's their first and only house - they are a little bewildered by all this process) - mostly because her husband hasn't received his license with their new address (my sis has hers.) She is freaking out because without the exemption, the taxes are $3500 more than what they have in escrow...

It's been so long since we did this, I can't remember the process. Any of you experts have any words of wisdom?

Yes, the deadline to file a homestead exemption was April 30th. They need to get on their CAD's website ASAP to see if there is any kind of one-time extension they can file for this year. If not, they are going to owe the extra taxes for 2017. I just had to get a new license. It literally takes two weeks to get it back in the mail....

[octo]

Originally Posted by TurtleCreek80

Yes, the deadline to file a homestead exemption was April 30th. They need to get on their CAD's website ASAP to see if there is any kind of one-time extension they can file for this year. If not, they are going to owe the extra taxes for 2017. I just had to get a new license. It literally takes two weeks to get it back in the mail....

You have to own and live in the house on January 1st to qualify.

If you forget to file the homestead application for this year you'll have to pay higher taxes for this year but you can file this application next year and claim the homestead exemption for this year retroactively. I did that in the past and I got checks back from the tax authorities.

[Katana49]

Originally Posted by BLDSoon

If a home was not affordable to you before it probably wont be affordable now. It isn't as if your property values went up and those of the next tier home remained the same. Also downsizing wont work the way you think either for the same reason. Basically, nothing's changed. The numbers just got bigger. Your home wont help you make that move.


Now if your income went up.....that's another story.

Incorrect.

An example. Let's say I was approved to buy my current home with 20% down. We'll say $100k. My salary supports a $400k loan. Total sale price/value of home = $500k.

My home has now increased in value to $700k. My equity in the home is now $300k. I could sell and buy another home valued at $800k, and a lender is going to see that my new LTV ratio is 37.5%... far better than the 20% ratio I started with. So long as my DTI wasn't maxed out on my original loan, I'll easily get approved for the more expensive house.

And for downsizing? Uh, I can easily sell the home in the above example for $700k and buy another place for $500k here, and cut my loan amount from $400k to $200k.

[Waterdragon8212]

Originally Posted by TurtleCreek80

Yes, the deadline to file a homestead exemption was April 30th. They need to get on their CAD's website ASAP to see if there is any kind of one-time extension they can file for this year. If not, they are going to owe the extra taxes for 2017. I just had to get a new license. It literally takes two weeks to get it back in the mail....

Yeah, that's what I said about the license...either he's not being truthful about when he had it reissued or the DMV screwed up - hoping it is the former . Thanks for your help!

[oldoak2000]

Originally Posted by BigDGeek

Hell no, I'm not happy about it. I don't feel that the appraised value is fair because I don't see how the city's, the county's, and the ISD's expenses shoot up by 32% just because people flocking to DFW has pushed house prices to insane levels. It's BS.

Plus, it doesn't do me ANY good to have my house "increase in value" on paper while I'm still living there and paying property taxes. It only does me any good when it comes time to sell. Until then, I'm paying higher property taxes because Toyota and State Farm moved here, along with half of California and a significant percentage of Coahuila and half of IIT's graduating class moving here every year.

I lived thru this when I lived in Austin (home went from $56k to 286k now); but rather than 'fighting' it , I 'rode the wave' (3 times now) each time selling high and buying back in 'low' adjusting location to better fit my needs; so, without having to put in any additional CASH (using accrued equity only) I've turned my first $56k home into a now a $600k property ( $160k home with 40+ acres) with MOST of it shielded (from prop taxes = ag exempt acreage!!). True, acreage is not for everybody, but I've now got cheap gigabit Fiber to the Farm (I'm an IT guy, so couldn't be happier, and couldn't even get it in the metro area even now...). It's all about planning, planning, planning; gotta open your eyes wide and big! Don't get so attached to your (old) home & location, especially when somebody else Wants$ it more$$, as that will keep you from finding the BETTER one waiting for you! Last time I checked , my old little home in Austin (and others in-between) keep going up up up with no bubble to pop 30+ years now going, and I don't miss any of them at all!) DFW is going the same direction as Austin, and ya'll think 20%, 30%, even 50% increase is big deal, just WAIT till you are looking backwards realizing that 500% occurred and you didn't make plans to take advantage of it . . .
Back in 2000 I read some report saying that '...by 2025 the population of Texas will DOUBLE..' - don't sound like no BUBBLE to me, and I've been 'hanging 10' ever since!

[BLDSoon]

Originally Posted by Katana49

Incorrect.

An example. Let's say I was approved to buy my current home with 20% down. We'll say $100k. My salary supports a $400k loan. Total sale price/value of home = $500k.

My home has now increased in value to $700k. My equity in the home is now $300k. I could sell and buy another home valued at $800k, and a lender is going to see that my new LTV ratio is 37.5%... far better than the 20% ratio I started with. So long as my DTI wasn't maxed out on my original loan, I'll easily get approved for the more expensive house.

And for downsizing? Uh, I can easily sell the home in the above example for $700k and buy another place for $500k here, and cut my loan amount from $400k to $200k.

Of course it works on paper but you are assuming that the 800k house will be an upgrade. As in significantly better than your now 700k house. That wont necessarily be the case. In fact if your home has a bidding war cause its so great and sells for 740k, your 800k house might be a disappointment at worst and a rather mild upgrade at best. Probably not a tier up.

As for downsizing, your math makes sense. However i would have a hard time paying 500k to downsize from a home i paid about $500k for unless i had to. To me, save for a medical situation it would be better to stay put.

But with the mortgage scenario you outlined it makes sense. To me its a short term gain though. In that scenario i would stay put in the higher value home and end up with more propery/equity etc in the end. YMMV

[TurtleCreek80]

Originally Posted by octo

You have to own and live in the house on January 1st to qualify.

If you forget to file the homestead application for this year you'll have to pay higher taxes for this year but you can file this application next year and claim the homestead exemption for this year retroactively. I did that in the past and I got checks back from the tax authorities.

The poster said his sister bought the house in December so they would qualify for the homestead this year - IF they can get it approved after the deadline to file.

[jencam]

Originally Posted by Katana49

Sigh. More bubble talk without any data backing it up. If you think these price increases are temporary, I have some desert real estate you may be interested in.

These prices are the new normal, and they've been a long time coming.

I am specifically referring to my personal condo complex. I'm not going to provide data on precisely where I live, not is it a point I am seeking to argue about. I am not attempting to make broad statements about the DFW area in general.

My neighbor got 41 offers and sold in 24 hours at 10K over asking price, which was high already. That happens everytime a unit here goes up for sale. And it will not be that way when the scarcity factor is solved.

Some people don't even want a condo but there aren't enough houses, and developments have sprung up all over.

[jencam]

Originally Posted by Waterdragon8212

Anyone know if there is a deadline to file for a homestead exemption on a newly purchased home once tax appraisals/assessments have already come out? My sister and her husband just bought a home in December and just received their tax appraisal yesterday. The deadline to protest is May 31st, but they haven't yet filed a homestead exemption (it's their first and only house - they are a little bewildered by all this process) - mostly because her husband hasn't received his license with their new address (my sis has hers.) She is freaking out because without the exemption, the taxes are $3500 more than what they have in escrow...

It's been so long since we did this, I can't remember the process. Any of you experts have any words of wisdom?

Did they own it as of January 1st? And occupy it as of that date? (I think there is a form that says if you own it you have to occupy w/i a certain time-frame, not necessarily on the 1st). Owning as of the 1st though there is no wiggle room.

[jencam]

Originally Posted by BigDGeek

Hell no, I'm not happy about it. I don't feel that the appraised value is fair because I don't see how the city's, the county's, and the ISD's expenses shoot up by 32% just because people flocking to DFW has pushed house prices to insane levels. It's BS.

Plus, it doesn't do me ANY good to have my house "increase in value" on paper while I'm still living there and paying property taxes. It only does me any good when it comes time to sell. Until then, I'm paying higher property taxes because Toyota and State Farm moved here, along with half of California and a significant percentage of Coahuila and half of IIT's graduating class moving here every year.

Well, they do have to accommodate more students. more hospital, etc. Whatever all PT pay for there is more needed now with more people.