Dallas Home Appraisals News and Information

Time to Protest Taxes is Running Out

Keep in mind this is the last week to protest your property tax assessment (technically you have until the close of business June 1 in Dallas and some other area counties).  Some areas really didn't see a drop in values at the end of 2008 and the assessments are likely to stand; but others did have drops in values, especially during the last few months of the year and after many of the county assessments had been completed.  As noted in the DMN (which has an interesting look at success rates in 2006 here), the majority of protests result in some reduction in the assessment, though relatively few file protests. 

Remember, you don't have to necessarily file a formal protest.  For the next 5 business days you can go down to the county appraisal office and present your case to an appraiser, who can lower your assessment.  If he/she chooses not to, you can still request a formal hearing before the board.  If you have not made your request by Monday, you will lose the opportunity to protest this year. 

Two of the best ways to make your case to the appraiser are: 1) present a professional appraisal showing a lower market value than assessed and argue that it is a better indicator of value (after all, a professional appraiser will have walked through the property and will be able to be more specific than the county appraiser who does not enter the property; and 2) show the appraiser sales from the last 90 days of 2008 and explain why they support a reduction in the market value of your property. Blue Star Appraisals can help you with either of these approaches, but you will need to contact us in the next day or two.

Saw an interesting item on one tax record a few days ago.  The property was revalued in 2008 (for 2007) but not in 2009.  Yet in the last quarter of 2008 the property sold for $48,000 more than the assessed value.  This sale was noted on the property tax record, yet the assessment was not increased. Sometimes the system works for us, sometimes against us.

Next Wave of Foreclosures?

An item in the New York Times today reports on a coming new wave of foreclosures - those due to homeowners with conventional loans that were well within their means who are now losing their jobs or having hours cut back resulting in less income. As the unemployment rate rises, or companies cut back on production and services due to the recession, look for more foreclosures in solid middle-class neighborhoods.

At the same time, the DMN reports that more than half of potential home buyers say they are interested in purchasing foreclosures, likely in hopes of getting a bargain. Buyers should keep in mind that while they may be getting a bargain on the initial price, the taxes will go up as values climb again eventually, and they should take into account taxes, insurance and maintenance on a home that is likely larger than they would otherwise have purchased.

When you are thinking about what you can afford, and what you want to spend per month on housing, be sure to include not only your mortgage payment but also 1/12th of your property taxes, homeowners insurance, upkeep, routine maintenance and utilities (it's more expensive to air condition a larger home, and that cost won't drop just because you got a bargain on the price). That said, there are a lot of bargains out there for those looking for a primary residence, a second home or an investment property.