HCAD property tax protest for recently purchased home (credit, attorney)

[HCAD_ANIMALS]

These people are

[Reefmonkey]

Check out websites like Georgescottreports.com and hcadwallofshame.wordpress.com to read the real scoop on the corruption at HCAD and the ARB.

[jodybo]

I recently purchased a home in the Villages and I paid a number over the current appraised value. The current appraised value is in line with the other houses on the block which are all very similar. Did you have any luck arguing the per sq ft. angle?

Can anyone respond regarding the "survey"? Am I under any obligation to respond to this honestly? Are there any potential consequences to returning the survey with incorrect data as it is an "invitation to participate in the process"? Has anyone ever returned the survey with false data and/or, are there any potential consequences to such an action given the county does not have the legal right to acquire that information?

Another question is this: How does the county come up with the sales information? Do they access MLS? If there is no deed of trust (note), and the deed does not stipulate a transaction price, do they then access MLS or do they then have no way to access the information?

[trbstang]

Originally Posted by jodybo

I recently purchased a home in the Villages and I paid a number over the current appraised value. The current appraised value is in line with the other houses on the block which are all very similar. Did you have any luck arguing the per sq ft. angle?

Can anyone respond regarding the "survey"? Am I under any obligation to respond to this honestly? Are there any potential consequences to returning the survey with incorrect data as it is an "invitation to participate in the process"? Has anyone ever returned the survey with false data and/or, are there any potential consequences to such an action given the county does not have the legal right to acquire that information?

Another question is this: How does the county come up with the sales information? Do they access MLS? If there is no deed of trust (note), and the deed does not stipulate a transaction price, do they then access MLS or do they then have no way to access the information?

Throw the survey away, don't send it with false info! Why give them anything to help them raise your taxes voluntarily? Sales price is not public record in Texas, and from what I understand, the only place with that info is through MLS. I don't think they have access or why would they send out the forms?

Oh, and FWIW, we protest every year, and have it handled by one of the companies now that it is basically the same as our neighbors. Last year they saved me $153 in taxes, so I paid them $46.

[Meyerland]

Why don't you just use the companies that fight the property tax for you? There are several of them and it's free unless they save you money. Then you pay them half of the savings they got you. Then the next year, do the same thing. They really know what they are doing. If you protest it yourself, you are unlikely to save much.

[jodybo]

My situation is unique due to my recent purchase. This next appraisal year ('14) will be critical for me as it will set my base value from which the 10% rule will apply henceforth. As it is the first year after the transaction, I am relatively certain that the 10% (of the last appraisal prior to transaction) does not apply. So, it is very important for me to do the exact right thing this year to avoid a big jump as I paid well over 10% over the '13 appraisal.

It is my experience that the "appraisal fighter services" don't like battling the reappraisal if you pay considerably more than the old appraisal and HCAD is actually near the new price. Example, if the '13 appraisal is 250K and you buy the house for 350K. It is a big year as you do not want hcad getting that 350K number, this will essentially cost you roughly 2.5K per year in perpetuity. The key is to keep hcad from finding out the 350K number.

I'm hearing conflicting data from a number of "good sources". A couple of my friends in the RE business have definitely said that whether it's legal or not (price chasing), hcad accesses MLS if/when they don't get a response to the survey. For future buyers, it is important to try to keep your purchase of of MLS which is often impossible in Houston because the realtors won't allow it. If you can buy a house before it comes on the market, make a strong offer with it contingent upon the house NOT being listed on MLS. This was the error I made, I had this opportunity.

In my situation, if hcad catches the actual price and resets to the number, I am going to get hit for several thousands of dollars per year in perpetuity that I would otherwise not have to pay. The reason I say perpetuity is that I'll fight it every year no matter what and it will likely stay around the reappraisal for the next 5-6 years, so to the extent that I can get it in line with my neighbors rather than what I actually paid, I will save big money. Like on many issues in life, knowledge is key. I just wish I knew for a fact what they do with the surveys, what the legalities are around the surveys, and whether or not the access MLS.

Nobody really seems to know. It is my belief that it is a violation of State Law for them to access MLS due to the Texas taxpayer bill of rights. Still, I don't know, and I hate not knowing.

[fnh]

It isn't a violation of state law for them to access MLS/price data. After all, they have to to assess fair market value of properties! The only reason that information can't be publicly disseminated is because the realtor lobby paid the legislators to protect their monopoly on those numbers. There's business friendly TX for you.

Still SMH reading these posts from people who want to argue that their homes aren't worth the price they just paid for them.

[kreeyax]

Originally Posted by jodybo

I just wish I knew for a fact what they do with the surveys, what the legalities are around the surveys, and whether or not the access MLS.

When I bought my new home I threw away the survey from HCAD. They sent another one, I threw that one away too. Finally, they sent a person to my door to ask me the questions. She had a sheet of paper with my exact sales price written on it. So HCAD already knows exactly what people are paying for their homes. I'm not sure why they bother with the survey. Maybe to make it look like people are giving them the data voluntarily.

[PedroMartinez]

Originally Posted by Meyerland

Why don't you just use the companies that fight the property tax for you? There are several of them and it's free unless they save you money. Then you pay them half of the savings they got you. Then the next year, do the same thing. They really know what they are doing. If you protest it yourself, you are unlikely to save much.

You shouldn't have to pay somebody to keep your government rent from going up.

[trbstang]

Originally Posted by kreeyax

When I bought my new home I threw away the survey from HCAD. They sent another one, I threw that one away too. Finally, they sent a person to my door to ask me the questions. She had a sheet of paper with my exact sales price written on it. So HCAD already knows exactly what people are paying for their homes. I'm not sure why they bother with the survey. Maybe to make it look like people are giving them the data voluntarily.

We only got one survey and nothing else. I guess they are being more persistant now. But if that happens, then you go to step two. Argue unequal appraisal on your protest, not sales price and compare it to the appraised value of several comps around you. If their homes are appraised at a lower value, then you have a standing to get yours reduced. The appraisal is not always based on just the sales price. This is the process most of the tax appeal companies base their research on, as the appraised values usually are less than sales prices. For me, I was able to find 6 homes in my neighborhood with the exact same floorplan. Two of them had higher prices per sqft, the others were less, so I used the 4 with lower prices. Their comps were stupid, 3 of the 4 were not even in my neighborhood and of course they made my house look like it was underappraised. With the info I provided, they dropped mine to the average of the 4 homes that year.