Property Taxes 101: How to prepare for your protest hearing
NORTH TEXAS (CBSNewsTexas.com) – It's the one piece of mail most of us dread every year – the property value notice. Most homeowners are watching their valuations go up yet again, thanks to record-breaking home sales over the last few years.
Tax attorney Bobby Ola makes his living protesting for property owners, but this year he says he's turning away most homeowners because there is so little chance of saving them money.
"When the market's up, it's harder to argue for a reduction," he said. "The evidence is not in the taxpayer's favor as much as it could be in a down market, when we have all the cards."
Still, Ola said, the appraisal district doesn't always get it right.
"You might as well protest each year and do the research and find out if you're appraised correctly," said Ola. "There's always an argument to be made - it's an opinion of value."
If you plan to protest, he says the first thing you should do is get a list of comparable sales: homes that sold in the last year that are similar to yours. The closer in size, the better. Try to keep it within 200 square feet of your home. If the comps have upgrades or nicer finishes, make sure to point that out.
"If you have three properties that have all been completely redone and your property is rental grade... you can make that distinction," said Ola.
Next, collect evidence and build a case against your home.
"You want to make your property terrible," said Ola. Look for structural defects, foundation cracks, old aging roof, along with cosmetic issues like old carpet and peeling paint. Take photos and if you can, get estimates on how much it would cost to repair it all.
"You want to quantify the damages," said Ola. "You want something concrete to show the review board." That means doing the math: demonstrate exactly why your number is smaller than the district's. Ola says documenting and visualizing the problems and quantifying the repairs is the best way to get a reduction.
Finally, be sure to examine their evidence before your hearing. You are entitled to see the comps used by the appraisal district. Some counties have them online already in your account. Ola says he's won cases by finding better comps. "All the comparables they were using were 1,000 to 1,500 square feet larger than the subject, for whatever reason, so in my opinion they didn't have any good evidence."
If you bought your home in the last year, appraisers will likely match your sale price. You need to provide your closing statement to show what you paid.
Every county may operate under slightly different rules so be sure to read the requirements very carefully.
DALLAS COUNTY
