HCAD appraisal values out for most people (home, buying)

[eastontracks]

Just got mine. Went up 20%! I'm fine as it's better for someone wanting to but my place anyway right?

[ToyYot]

Originally Posted by LegoBatman

I'm pretty sure jwtomt2day is correct. In order for the cap on the increase of the appraisal value to apply you have to have had a homestead exemption both the current year and the previous year.

The year you buy your house the homestead exemption applies to the amount of taxes you pay, but does not protect you from a large increase in the appraised value.

Here is the description of the cap on the HCAD site:
HCAD: Capped Values

Ok, maybe I didn't understand the question but here's what I was referring to:

The year you buy your house you will have to pay the taxes for that year but you would have been credited for the time you didn't own the house during closing by the seller. You do get the benefit of the sellers homestead exemption and their (likely) low legacy HCAD appraisal.

For the year following your purchase your appraised value will be 're-aligned' by HCAD to market value as a result of a buy/sell transaction and it will likely be significantly above the previous appraised value. So you will pay tax on the new value but, assuming you filed for your exemption in time, you do get the homestead reduction as well.

Perhaps I was answering the wrong question!

[LocalPlanner]

I dont' see why people get upset at HCAD adjusting their appraised values upwards. If that's what's happening in the market, then HCAD (or whichever county's appraisal district) is doing its job. Now, it should do it equitably across homes sharing similar physical and location characteristics - if it's not, then that's a legitimate reason to be upset.

One earlier poster even was miffed that HCAD can access the MLS. That improves the job they're doing; not using it would be a worse approach.

What we should really be miffed about is high-value commercial properties - office towers are the worst - unjustifiably arguing their values down. They "negotiate" their values with the appraisers. This is standard practice, because they can afford to hire top-notch consultants or have those types on staff. That's something not available to your average homeowner (despite the advertisements of such services - don't believe the hype).

If you're upset about taxes, you should direct your energy to the Commissioners Court, School Board, City Council, etc. - those are the folks that actually set tax rates and budget the windfall of increased revenues due to higher values. The state actually provides means to do this via Rollback Elections.

[ToyYot]

What I get miffed about is my neighbors market value has been appraised 10% less than mine even though it was taken down to the studs a few years ago and I'm still driving a 50yr old clunker!

[marksmu]

Originally Posted by Bike4Life

Ah, so HCAD is a paying member to HAR for information purpose. Why were you making it sound like some hood-wink money grubbing scandal? You made it sound like HCAD secretly bought out HAR for the sole purpose of this exploitation.

Correct, HCAD is paying member to HAR to gain access to sold data....Texas is a non-disclosure state. We like our privacy and having everyone know our business is never good for anyone.

Because the MLS is so effective at selling houses, the values it has are extremely accurate for the area as a whole. As a result of this accuracy HCAD obviously wanted access. HAR sold them access, even though by doing so they were going against the will of the majority of their own customers. To me it is no different than a retailer selling your email address and the content of things that you look at online for targeted advertising.

I did not mean for it to sound scandalous, but it was certainly not something that was done in the best interest of homeowners. The only folks who benefit from this are the HCAD folks and realtors, who get to see bigger paychecks each year as property values rise.

[jwtomt2day]

Originally Posted by ToyYot

What I get miffed about is my neighbors market value has been appraised 10% less than mine even though it was taken down to the studs a few years ago and I'm still driving a 50yr old clunker!

There is the rub! When the market value has no relationship to reality and is much more accurate for the neighbors.

[trbstang]

Originally Posted by eastontracks

Just got mine. Went up 20%! I'm fine as it's better for someone wanting to but my place anyway right?

Buyers do not usually pay attention to the appraisal district values as they are usually below the actual market value. Personally I don't want to PAY more in taxes if I can avoid it, so no increase is the best. I don't volunteer to pay more taxes than I HAVE to, and if I can get it reduced, why not. More $$$ in MY pocket and not the government's.

I checked mine and they increase my market value from $206K to $247K, but luckily my appraisal only went up the 10% cap. I hope my property tax agent can get some results this year, but I won't hold my breath.

Good luck to everyone protesting!

[travelguy_73]

What I fail to understand this year is how they apply value changes in old neighborhoods. I looked at Eastwood and Idylwood, and going through a decent-sized sampling of addresses, they appear to have only adjusted homes/lots that sold in 2013, and a few random others. Homesteaded or not, the market values haven't moved a dime. This in a year where appraisals might be at an all-time high.

Granted, the neighborhood never has a large number of MLS sales (many change hands via word of mouth), so I can understand the lack of data HCAD can rely upon. But when you think that, to a certain extent, a rising tide lifts all boats (especially as land values increase), then their approach is pretty confusing and a good amount of money is being left on the table. I would be pretty upset if I lived in another gentrifying area (e.g., Westbury) which is getting adjusted more fairly.

[eastontracks]

Originally Posted by trbstang

Buyers do not usually pay attention to the appraisal district values as they are usually below the actual market value. Personally I don't want to PAY more in taxes if I can avoid it, so no increase is the best. I don't volunteer to pay more taxes than I HAVE to, and if I can get it reduced, why not. More $$$ in MY pocket and not the government's.

I checked mine and they increase my market value from $206K to $247K, but luckily my appraisal only went up the 10% cap. I hope my property tax agent can get some results this year, but I won't hold my breath.

Good luck to everyone protesting!

true. i got mixed up in that reply, and realized that when they do appraisal on a property it doesnt go by this letter i got. so yeah, i need to see about paying less now too.

[astrohip]

Originally Posted by ToyYot

What I get miffed about is my neighbors market value has been appraised 10% less than mine even though it was taken down to the studs a few years ago and I'm still driving a 50yr old clunker!

I protested my house last year even though it was accurately appraised (actually, probably slightly low). My protest was based on my house being 30% higher (per sqft) than every other house on the block but one. That is considered an acceptable reason to protest by HCAD.

I ended up getting a little knocked off, and took it. I got bumped 10% this year, and will run the street comparison again. If it's still off, I'll fight it again.

I don't care if it's high or low, I just don't want to be higher than neighbors.