Why Did My Property Value Increase?

Property Value Changes

The appraisal district uses a mass appraisal technique to classify your property and assign a market value based on a class of like properties. This allows the appraisal district to classify thousands of properties without looking at specific factors related to each residence and it  provides us grounds to protest that value by showing how your property differs.

Mass appraisal uses recent property sales, among other factors, to classify and quantify the value a class of properties should have based on size, type of use, and other market factors.  It doesn’t take into account the unique factors that affect your particular property.

How Property Value is Established

How do you calculate what a property is worth? With unique factors influencing the market value of any single property, there is no one size fits all approach to your property value. Despite the appraisal districts current use of mass appraisal to determine your property’s market, and subsequent taxable value, there are individual factors that make your property unique. These unique characteristics differentiate your property and provide support for a lower market value.

I’m Planning to Sell – Why Protest?

What if I am planning to sell soon? Would a lower market value hurt my sale price?

Even if you are planning to sell your property, it is always a good idea to protest your property tax value for two reasons

• You will pay your share of the current year’s taxes at closing. The lower the taxable value, the less you will have to pay.
• Lower taxable value can make the property more attractive to the buyer. Buyers, who has been shopping the market, know values in your area. They know that appraisal district values can miss the mark, especially in Denton and Tarrant Counties. Seeing a taxable value that is below market can make the property more attractive because of the presumed tax savings.

Also, if you’re about to sell let us know and we’ll pro rate our fee accordingly.

I Recently Purchased – Why Protest?

We recently purchased a new home and the taxes are higher than the previous owner. Why?

New homebuyers can be surprised with unexpected tax values due to the purchase price being disclosed to the appraisal district, a lack of homestead exemption, or other reasons.

The previous owner’s taxable value may have been limited by the ten percent homestead capped value.  That doesn’t apply to the new buyer.

When you purchase through MLS the purchase price becomes known to the appraisal district unless you specify to the agent that the price not be disclosed.  Where it’s disclosed the district will typically raise market value to what you paid.  Where it’s not disclosed the district may raise market above what you paid and wait for you to protest.

In either case there are remedies available to you of which you may be unaware.  Was it a purchase under duress?  For instance, did you need title before school started so you could register your child?  Were there considerations other than the real estate?  For example, did part of the purchase price go to personal property?  These are among the arguments that might be made in support of a taxable value below your recent cost.  There are others.

We have been successful in these protests before and can apply our experience so that you pay only your fair share of taxes, not more.  And, of course, if there’s no reduction there’s no fee but you will know that we are on your case year after year without your having to be concerned about future increases or being overtaxed on your home.  We’ll continue to monitor your value each year until you tell us not to.

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