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Old 08-06-2015, 11:54 AM
 
2 posts, read 1,703 times
Reputation: 10

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Hello all! I'm gearing up for my first HCAD protest (informal hearing) in a week. We purchased our home in early 2014 for 335K, but HCAD has estimated the market value at 425K (as of Jan 1, 2015). The bulk of the increase is in the improved value, and we added next to nothing in terms of improvements. While housing in our area went up some in 2014, their estimate is off the charts.

My strategy is below. I'd appreciate if you can review and advise on whether I should be doing anything different.

a) Plan to represent myself at the informal hearing. (Is is worth getting a third party to represent?)
b) Mainly use our closing statement to justify that their assessed market value is way high and should be closer to 335K, say 360K. Use comps to justify a lower number. (Is this realistic? Should I invest in a Jubally report?)
c) Once we agree on a lower market value, use formal quotes for numerous repairs around the house to knock the market value down further.

Any help and advice will be greatly appreciated!
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Old 08-06-2015, 12:14 PM
 
Location: Westbury
556 posts, read 1,008,705 times
Reputation: 463
you shouldn't have any problem getting them to reduce the value to the price you paid. Just bring the closing statement to the informal and you should be in and out in a few minutes. If they won't for some reason, you'll have to move on to the formal.

Good luck!
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Old 08-06-2015, 01:04 PM
 
1,835 posts, read 2,940,290 times
Reputation: 3769
Quote:
Originally Posted by gustafson View Post
Hello all! I'm gearing up for my first HCAD protest (informal hearing) in a week. We purchased our home in early 2014 for 335K, but HCAD has estimated the market value at 425K (as of Jan 1, 2015). The bulk of the increase is in the improved value, and we added next to nothing in terms of improvements. While housing in our area went up some in 2014, their estimate is off the charts.

My strategy is below. I'd appreciate if you can review and advise on whether I should be doing anything different.

a) Plan to represent myself at the informal hearing. (Is is worth getting a third party to represent?)
b) Mainly use our closing statement to justify that their assessed market value is way high and should be closer to 335K, say 360K. Use comps to justify a lower number. (Is this realistic? Should I invest in a Jubally report?)
c) Once we agree on a lower market value, use formal quotes for numerous repairs around the house to knock the market value down further.

Any help and advice will be greatly appreciated!
Yup, slam dunk. I did my informal myself and just brought my closing package. Im not sure what crack they smoked coming up with my original cost, but I paid 40% less than they thought it was worth and they instantly lowered it without arguing.

I think its part of their game. Just appraise all recently sold transactions super high, and the homeowner will voluntarily disclose what they paid.
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Old 08-06-2015, 01:06 PM
 
Location: Hougary, Texberta
9,020 posts, read 12,867,038 times
Reputation: 10985
You're spot on. Closing statement should make it a no-brainer.
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Old 08-06-2015, 03:42 PM
 
Location: Houston, TX
2,052 posts, read 5,346,658 times
Reputation: 1294
Quote:
Originally Posted by marksmu View Post
I think its part of their game. Just appraise all recently sold transactions super high, and the homeowner will voluntarily disclose what they paid.
I think you just figured them out. Since they don't have direct access to the sales data, this will be one way to get it from everyone.

I can think of quite a few not nice names for those people now!
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Old 08-06-2015, 04:19 PM
 
Location: Denver, CO
1,981 posts, read 1,238,879 times
Reputation: 1905
Quote:
Originally Posted by gustafson View Post
Hello all! I'm gearing up for my first HCAD protest (informal hearing) in a week. We purchased our home in early 2014 for 335K, but HCAD has estimated the market value at 425K (as of Jan 1, 2015). The bulk of the increase is in the improved value, and we added next to nothing in terms of improvements. While housing in our area went up some in 2014, their estimate is off the charts.

My strategy is below. I'd appreciate if you can review and advise on whether I should be doing anything different.

a) Plan to represent myself at the informal hearing. (Is is worth getting a third party to represent?)
b) Mainly use our closing statement to justify that their assessed market value is way high and should be closer to 335K, say 360K. Use comps to justify a lower number. (Is this realistic? Should I invest in a Jubally report?)
c) Once we agree on a lower market value, use formal quotes for numerous repairs around the house to knock the market value down further.

Any help and advice will be greatly appreciated!
If you have any photographs of foundation cracks or other problems with the property bring these too.
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Old 08-06-2015, 06:32 PM
 
675 posts, read 1,332,499 times
Reputation: 729
Quote:
Originally Posted by gustafson View Post
Hello all! I'm gearing up for my first HCAD protest (informal hearing) in a week. We purchased our home in early 2014 for 335K, but HCAD has estimated the market value at 425K (as of Jan 1, 2015). The bulk of the increase is in the improved value, and we added next to nothing in terms of improvements. While housing in our area went up some in 2014, their estimate is off the charts.

My strategy is below. I'd appreciate if you can review and advise on whether I should be doing anything different.

a) Plan to represent myself at the informal hearing. (Is is worth getting a third party to represent?)
b) Mainly use our closing statement to justify that their assessed market value is way high and should be closer to 335K, say 360K. Use comps to justify a lower number. (Is this realistic? Should I invest in a Jubally report?)
c) Once we agree on a lower market value, use formal quotes for numerous repairs around the house to knock the market value down further.

Any help and advice will be greatly appreciated!
Easy. Bring in your closing statement. Lets say you bought your home in May, they will take your closing price time a small percentage (.005 in Fort Bend County) times the months left in in the year to get you to your final price. So for example $335,000 * .005 * 7 months = $11,725.

Net = $335,000 + 11,725 = $346,735.

This is just an estimate assuming you closed in May. They "true it up" for the months that remain in the year. This is how it is done in Fort Bend County, I am not sure if Harris County differs.
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Old 08-07-2015, 10:29 AM
 
2 posts, read 1,703 times
Reputation: 10
Thanks for all the replies, I'm feeling much better about it now!
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Old 08-07-2015, 11:17 AM
 
2 posts, read 1,212 times
Reputation: 10
I'm in a similar boat - bought our house August 2014 and HCAD is appraising it for 10% over our purchase price. Has anyone successfully protested and gotten HCAD to appraise it for LESS THAN their purchase price? If there are any strategies, I'd love to give them try!
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Old 08-07-2015, 01:14 PM
 
914 posts, read 1,633,889 times
Reputation: 586
It will be hard to get them to set market value below your purchase price. Your purchase price is the best evidence of market value-what a willing buyer paid a willing seller for the exact property. The appraised value can be different.
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