Can I trust the home values at the County Appraisal District value?
Here is another question I have to address constantly with my friends and clients: The short answer is no, but I will explain why below.
First of all, you should know that these values are there for taxation purposes only, and they are only done once a year.
Second there is a difference between market values and tax appraisal values. In theory, they should be the same but it is absolutely impossible for the county to visit every neighborhood in the county, go inside each home to check its condition, and generate at least "three" comparable solds for each property.
Third, the county bases its appraised values based on budgetary reasons for the year. That means, the county establishes a budget for the year, decides the increase in taxation needed to meet the budget, and then generates the increase in tax rate applicable to all the properties in the area. Then if the increase was too much for a homeowner the burden of proof is in the homeowner to show the county that they made a big mistake.
Fourth, Texas is a nondisclosure state. That means that when you buy your home, you don't need to tell the county how much you paid for your home. Texas is still a free country and they can not force you to reveal that. So when they ask you how much you paid, it is up tp you to disclose that.
Fifth, some uninformed homeowners don't dispute their increase in taxes under the belief that the market value is rising, not realizing the only true thing is that their taxes are increasing. On the other hand, there are some savvy homeowners that make use of very depreciated data and pull the values down based on low sales in the neighborhood.
Sixth, market values, like gasoline prices, are determined by actual supply and demand (higher in the Summer than in the Winter). It is established when a buyer and a seller come to a meeting of the minds, sign a purchase contract, and the transaction actually closes.
First of all, you should know that these values are there for taxation purposes only, and they are only done once a year.
Second there is a difference between market values and tax appraisal values. In theory, they should be the same but it is absolutely impossible for the county to visit every neighborhood in the county, go inside each home to check its condition, and generate at least "three" comparable solds for each property.
Third, the county bases its appraised values based on budgetary reasons for the year. That means, the county establishes a budget for the year, decides the increase in taxation needed to meet the budget, and then generates the increase in tax rate applicable to all the properties in the area. Then if the increase was too much for a homeowner the burden of proof is in the homeowner to show the county that they made a big mistake.
Fourth, Texas is a nondisclosure state. That means that when you buy your home, you don't need to tell the county how much you paid for your home. Texas is still a free country and they can not force you to reveal that. So when they ask you how much you paid, it is up tp you to disclose that.
Fifth, some uninformed homeowners don't dispute their increase in taxes under the belief that the market value is rising, not realizing the only true thing is that their taxes are increasing. On the other hand, there are some savvy homeowners that make use of very depreciated data and pull the values down based on low sales in the neighborhood.
Sixth, market values, like gasoline prices, are determined by actual supply and demand (higher in the Summer than in the Winter). It is established when a buyer and a seller come to a meeting of the minds, sign a purchase contract, and the transaction actually closes.
Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®
If you know anyone wanting to buy, sell, or lease - please feel free to contact me! Referrals are ALWAYS appreciated!
Brian Mitchell
RE/MAX CityView
713-447-0963 (call or text)
brianamitchell@remax.net
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