Property tax bills can feel overwhelming, especially if you believe your home has been overvalued. A higher property tax appraisal can lead to significant financial strain, impacting your overall budget and monthly expenses.
Many homeowners are aware of their right to challenge their property tax appraisal but find the task to be difficult, confusing, and frustrating, leading them to opt not to pursue it. Don't despair; there is a meaningful way to seek relief, and you won't waste your time doing it. One of the foundation blocks of the Texas Ad Valorem property tax system is the right to challenge your property tax appraisal if you feel it is inaccurate, causing excessive taxation. I want to help. Michael Saegert, Attorney at Law in Houston, Texas, is here to tell you all about property tax appraisals appeals.
This process isn’t only crucial for potentially reducing your tax burden but also empowers you as a property owner to advocate for fair assessments. Successfully appealing an appraisal requires, to varying degrees, careful preparation and compilation of compelling evidence and - most importantly - a clear understanding of the local appeals process.
It’s essential to gather relevant information, identify any discrepancies in the appraisal, and present a well-structured case to the appraisal review board. Failing to do so will give the appraisal district an undue advantage in the appeal process.
Below is a guide designed to help you manage this process effectively, make a strong case, and potentially lower your property tax bill, alleviating some of the financial stress associated with overvaluation.
Know How Your Property Tax Appraisal Was Determined
Before challenging your appraisal, it’s essential to understand how the Central Appraisal District (CAD) calculates property values. Most appraisal districts base the assessment on recent sales of comparable homes, construction and land costs, property conditions, location, and market trends. Consideration of income potential can also be taken into account, especially if the property is held for investment purposes.
HINT- Request a copy of your prior year's appraisal assessment from the appraisal district office and compare it with the current year's appraisal review. You'll notice changes and potential errors that may not be apparent otherwise. Look for incorrect square footage, outdated improvements, and discrepancies in the structural characteristics. Don't focus on mistakes in the number or type of rooms. That has little to do with appraisal modeling programs used by CADs. Indeed, minor inaccuracies can impact the final valuation, but focusing on them can come at the expense of correcting significant errors.
Review Comparable Property Sales in Your Area
A strong appeal often relies on showing your home’s value is inflated compared to similar properties. Research recent home sales within your neighborhood, focusing on houses with comparable size, age, and features. Look at public records and real estate websites, or consult a real estate agent for a comparative market analysis.
HINT - The best evidence to use is usually the worst evidence provided by the appraisal district. Often evidence you compile will not be as compelling as the evidence prepared and submitted by the appraisal district. This is why you should use the CAD's evidence to your advantage if appropriate. Often, the proverbial "smoking gun" is contained in the appraisal district's evidence but overlooked. Property owners can spend an inordinate amount of time proving that they are right, when the better approach is to prove that the CAD is wrong.
Identify Errors That May Impact Your Appraisal
Many property tax assessments contain errors that can lead to an inflated valuation. Identifying and correcting these errors can provide a strong foundation for successfully challenging your property’s assessed value. When reviewing your appraisal, check for the following mistakes.
Incorrect square footage or lot size – If the recorded size of your property is larger than it actually is, the value may be overstated. The same goes for easements, topography issues, setbacks, lot shape, and other negative influences that are often overlooked.
Inaccurate property characteristics – Misrepresentations about the grade, quality of construction, condition, and remodeling commonly leads to overvaluation.
Undisclosed property damage – If your home has structural issues, outdated systems, or significant repair needs, these should be factored into the valuation. Be mindful, however, not to overstate or exaggerate the errors. The information you provide often is checked by the appraisal district, and where you have clearly exaggerated claims in your documentation, it can taint the reliability of everything you provide.
HINT: If you find discrepancies, gather evidence such as blueprints, inspection reports, or repair estimates to support your case. Do not take isolated photos of mold damage, wood rot, or minor cracks in the sidewalks to prove up significant reductions in your property. While it is true the appraisal district considers what you show to support your case, it likewise strongly considers what you do not show, such as a closing statement, appraisal report, or listing agreement, that is exists.
Check for Unequal Property Assessments
In some cases, property tax appraisals may not be consistent across similar properties in the same area. If homes with similar characteristics are valued lower than yours, you likely have grounds for an appeal based on unequal assessment.
Check public records or consult with neighbors to compare appraisal values. If significant discrepancies exist, this can serve as strong evidence that your home has been unfairly assessed.
HINT: CADs usually perform an equity analysis to show whether a property is unequally appraised. The key to prevailing where equity is raised is to identify flaws that exist in the CAD's own records. An example might be to show where the CAD's noticed value of a comparable property is substantially higher than the actual property sale price. This tends to show a general over-appraisal of the comparable property, which thus suggests an over-appraisal of your own property.
Know Your Local Appeals Process
Generally, every CAD follows recognized rules in the appeal process. However, due to the uniqueness of the jurisdiction, the implementation of these rules varies significantly among jurisdictions. This includes deadlines, accepted documentation, and settlement processes, among other things.
Typically, the protest process follows these steps.
Filing an appeal within the designated time frame – Deadlines vary by location, so act quickly to avoid missing your opportunity. While May 15th is the general deadline to file a protest, it may be extended to a future date if the deadline falls on a holiday or weekend or if the notice is received less than 30 days beforehand.
Submitting evidence – This may include comparable sales data, photographs of property damage, or documentation of assessment errors. Be careful, however. Some CADs require the information to be in a hard copy format or, if e-docs, on a USB drive.
Attending a hearing – Many CADS allow you to meet with an appraiser to try to resolve the protest beforehand. You should use this opportunity. Be prepared, however. If no resolution is reached, you will need to go to a review panel for a formal hearing.
Timing. Plan to spend several hours at the appraisal district. Even though a set time may be scheduled to meet, the matter is often heard much later, especially during the height of the hearing season.
Gather Strong Supporting Evidence
Successful appeals rely on well-documented evidence that clearly demonstrates an inaccurate valuation. Organize all documents logically and present them in a clear, concise manner to strengthen your case. The more factual evidence you provide, the stronger your appeal will be. Consider including these pieces of evidence.
Recent sales data – Show that comparable properties sold for less than your appraisal value.
Repair estimates – If your home requires major repairs, obtain contractor quotes to illustrate how these issues affect market value.
Independent appraisal – Hiring a professional appraiser can provide a third-party opinion on your property’s true worth.
Photos and documents – Visual proof of property defects or outdated features are vital, to impeach the appraisal district's evidence.
Organize your evidence in a clear, structured manner to make your case more compelling.
Present Your Case Effectively
If your appeal requires a formal hearing, prepare to present your argument in a professional and concise manner. Stick to factual data and avoid emotional arguments. Emphasize objective evidence, such as comparable home sales and assessment errors.
Be prepared to answer questions from the appeals board and remain calm and respectful throughout the process. If possible, rehearse your presentation beforehand to maintain clarity and confidence.
Consider Hiring an Experienced Property Tax Attorney
While many homeowners handle appeals on their own, some cases may benefit from professional assistance. Property tax consultants and attorneys focus on challenging appraisals and may have a helpful perspective on effective strategies for reducing your tax bill. Here's when you should consider hiring a professional.
Your property is highly unique, making it difficult to find comparable sales.
You need assistance handling complicated legal or procedural aspects of the appeal.
Your initial appeal was denied, and you wish to escalate the case.
Although hiring a professional involves additional costs, a successful appeal could result in long-term savings.
Be Prepared for Possible Outcomes
After filing an appeal, the review board will assess your evidence and determine whether an adjustment is warranted. After submitting your property tax appeal, be ready for various outcomes. Being prepared for these potential outcomes will help you manage expectations and plan your next steps in the process. These are some potential outcomes.
Successful reduction – If the board agrees with your claim, your property tax liability may decrease.
Partial adjustment – Some appeals result in a lower valuation, but not as much as requested.
Denial – If the appeal is denied, you may have options for further appeals or legal action.
If you receive an unfavorable decision, review the reasoning behind it and decide whether pursuing additional appeals is worthwhile.
Plan for Future Appraisal Reviews
Property tax appraisals occur regularly, and even if you succeed in lowering your current valuation, future assessments may increase again. By planning ahead and staying informed, you’ll be better equipped to challenge future valuations and avoid overpaying on your property taxes. Here are some ways you can stay proactive.
Monitoring property sales in your area.
Keeping records of any changes or damages to your home.
Reviewing each year’s assessment for accuracy.
Contact Us Today for Help With Property Taxes
Challenging your property tax appraisal requires effort but can also lead to significant savings. By understanding the assessment process and presenting strong evidence, you can make a compelling case for a lower valuation throughout Texas. We work primarily in the Houston Metroplex area to handle property tax matters. However, we also handle cases elsewhere, including most large counties, such as Jefferson, Travis, Williamson, Nacogdoches, Bexar, Galveston, Tarrant, Montgomery, and Harris counties.
I hope this information proves helpful. If by chance you have any questions about the appeal process, or any other property tax issue, call me. I'd be happy to assist you..
