Property Taxes and New Home Upgrades! (Howe: sales, how much, new house)

[rugby]

Is there any truth to being able to lower property taxes if you pay cash for new construction upgrades? Approx $40K upgrades - $212K home.
Thanks

[SteveArmy]

Originally Posted by rugby

Is there any truth to being able to lower property taxes if you pay cash for new construction upgrades? Approx $40K upgrades - $212K home.
Thanks

that makes sense, if the upgrades are not factored into the home purchase price. the total purchase amount is visible to the appraisers. putting upgrades in and not telling the appraisers is the way to go
but then again check if someone is just blinding you with the 'savings' but selling something that is over priced

[davidtk]

I think it will help but it's no guarantee unless there's some rule that says the appraisal district can't appraise over your purchase price. If your property is appraised for more than you "paid," then you can show the sales contract as evidence of how much the house is really worth.

That's what I plan on doing with our new house if the appraisal is higher than our contract price.

[cheryjohns]

I have never thought about it - but it makes sense to do that. If you roll it into the price of the home, that is the amount reported to the appraisal district - and that is what you will be taxed on. When you say that you are paying cash - are you paying the builder direct to do it - or an outside contractor later? If it's the builder, make sure that their reported sale does not include it.

[baggiegenes]

Another factor is whether the builder needs to pull any additional permits to do the work. I believe building permits are the biggest flag to the appraisal district for upgrades done after purchase. I'm not sure how that would work for new construction, but you might want to find out.

[EasilyAmused]

As long as it's not plumbing, electrical or structural..appraisal districts will never know. However, I've seen some snooping ones in the past. They camp out and watch houses, in their little, white death Priuses, in my neighborhood.

[Houston3]

Originally Posted by EasilyAmused

As long as it's not plumbing, electrical or structural..appraisal districts will never know. However, I've seen some snooping ones in the past. They camp out and watch houses, in their little, white death Priuses, in my neighborhood.

I was visiting a friend once as he was putting the finish trim in a new house and the tax man from Harris county came in to look around...

[travelguy_73]

Originally Posted by EasilyAmused

As long as it's not plumbing, electrical or structural..appraisal districts will never know. However, I've seen some snooping ones in the past. They camp out and watch houses, in their little, white death Priuses, in my neighborhood.

Oh yeah, we had one just the other day ask to come inside and look around! I had read on here or HAIF that they do this sometimes, and I had instructed the contractor's workers not to answer the door. Glad I did that.

I suspect, though, in your run-of-the-mill new construction neighborhoods, that the inspectors don't do this. I also suspect that HCAD doesn't care much about the final sales price of your house because they are using a blended average x square footage to value the property anyways. It's only in gentrifying or custom areas where the values are all over the map that such a tactic would yield results.

[SteveArmy]

Originally Posted by EasilyAmused

As long as it's not plumbing, electrical or structural..appraisal districts will never know. However, I've seen some snooping ones in the past. They camp out and watch houses, in their little, white death Priuses, in my neighborhood.

ooh thats what they are ey. I think its quite common in asian neighborhoods to convert patios into enclosed rooms thats why we get a few of those prius' in the area

[pdouglas]

I did a similar process when I bought my home. The seller was putting 3% towards closing and I just asked that he lower the sales price by 3% of the negotiated sale price.