Tax Assessments in Texas: The Basic Facts on Value
Your Texas Property Tax Assessment does not tell you the market value of your home. Got that?
The tax assessment and the market value are often very different. They are supposed to be the same. That doesn’t mean they are.
The big, deep scoop on property taxes, is on the Window on State Government section on Texas Taxes.
Do you know how can you be taxed on an incorrect value for your property?
How Do Taxing Districts Determine Value?
Tax districts use software programs to assess property values. This is called a mass appraisal.
The software can get it wrong.
Some reasons why include:
- These programs depend on data available in public and government databases. This data may be accurate (number of bedrooms, size of the lot), or it may be wrong. People make changes (additions, pools, etc.) and don’t tell the tax guys.
- The software doesn’t know the actual condition of each property. We can all agree that condition matters when deciding what a home is worth!
- The software doesn’t understand why some areas are popular and other aren’t - it only uses the data someone plugged into the database.
If Your Value is Wrong, You Have to Protest to Get it Fixed
If the tax assessment on your home is wrong, it is up to you to protest the value to try to get it changed.
A few ways to protest:
- Do your own research, and go before the review board to argue to a lower value.
- Hire a company that specializes in fighting tax values. Some of them get paid based on what they save you.
- Hire a licensed real estate appraiser to appraise your home and take the appraisal to your protest hearing to argue your case.
How Do Appraisers Determine Value?
Appraisers determine fair market value differently than taxing districts.
- Appraisers do not use automated valuation programs when appraising individual properties.
- The appraiser will visit your property, measure it, and assess the actual condition of the property. Read Appraisal Steps: Determining the Market Value of Property.
- After the appraiser has inspected your property (the appraisal inspection), he will carefully analyze your property to find an accurate value.
- When the analysis is complete, the appraiser will give you a written report that has the appraiser’s opinion of the Fair Market Value of your property and will contain all of the supporting documentation.
- A good appraiser will understand the boundaries of market areas and other factors that influence the value of your own property and your report will reflect this expertise.
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