Top 10 Tips For Protesting Your Property Taxes

As the famous quote by Benjamin Franklin goes, "the only things certain in life are death and taxes.” In Texas, during the months of April and May property owners start receiving those dreaded notices from the tax appraisal districts. The appraised value set each year determines the amount of annual property tax owed (the appraised value for a homestead property cannot increase more than 10% per year). The property tax is the largest source of funding for local services in Texas; property taxes pay for public schools, city streets, police, fire protection and many other services. 

One of your most important rights as a Texas taxpayer is your right to protest to the appraisal review board (ARB).   The ARB is a group of citizens authorized to resolve disputes between taxpayers and the appraisal district. The ARB must base its decisions on evidence. It hears evidence from both the taxpayer and the chief appraiser. ARB hearings begin around May 1 and should complete most hearings by July 20. In the largest counties, this deadline may be later. ARB meetings are open to the public.

Here are some tips for a successful tax protest:

1. Mail your protest form as late as possible but still by the deadline. Why? You can do research on any similar properties on your street and nearby streets to see their appraised values. If any of them have had successful tax protests, their appraised values will be lowered. You can bring this data in as evidence, especially for homes of similar square footage. If you have a very early hearing date you won’t be able to gather this important evidence since few hearings will have occurred. To do research on properties, simply plug in addresses to http://www.traviscad.org/tcad_search.php?mode=situs&kind=real for Travis County or http://www.wcad.org/PropSearch.html for Williamson County.

• On your protest form under step 3, check boxes for "property is over value" and "property value is unequal compared to other properties. 
• Do not fill in anything under step 4. Leave it completely blank and for sure do not fill in anything for question "what do you think your property value is?"
• On step 5, check "yes" for you want ARB to send in copy of its hearing procedures & write in "request evidence packet & sales comp grid" (see #4 below).

2. Be polite and calm. No one is happy about higher taxes, however angry or rude behavior at your hearing will not help. Being friendly and polite will always get you farther.

3. Recognize that January 1^st is the official property valuation date.  Homes that sold closest to this date are most significant to the appraisal district; the further you go from this date, the less valid.

4. Request the “sales comp grid”: sold homes the appraisal district used to determine your home’s value. At least 14 days before your hearing, you should receive any information the chief appraiser plans to introduce at the hearing. When you mail in your protest form, write “mail me my sales comp grid” prominently on the form. In addition, you should receive a copy of Taxpayers Rights, Remedies & Responsibilites (read it, as it contains a lot of helpful info!).  

5. Ask your Realtor to poke holes in the “sales comp grid” data.  Once you receive your sales comp grid, we can help review it to find any reasons why the sold homes used might have higher value than your home. For example, there could be a home with a pool or major kitchen remodel that your home does not have. 

6. Use pictures as evidence. Help the person who helps you by providing evidence showing the condition of your property. If you are trying to prove your home is in worse condition than the other sold homes and value should be lowered, it will really help to have photos to back up your claims. Remember the condition of your home on Jan 1^st is most important.

7. Bring in lower-priced sold home comps, but only within your geographic grid; ask your Realtor for help.  Your Realtor can likely find homes that sold for lower prices than the homes used by the appraisal district. Many people who fail in their tax protests bring in sold homes outside their sales comp grid area. The appraisal district goes a very short distance from your home and stays very close in square footage (normally not higher than 25% up or down) in comparables. They also stay very close in year built.

8. Use your HUD settlement statement as evidence to lower your appraised value if the 2009 purchase price was lower than the 2009 appraised value. You have a very easy protest if your sold price was lower than the appraised value. All you need to do is mail a copy of the HUD statement and it is generally lowered to that amount without any hearing (ask your Realtor for a copy if you can’t find it).

9. Hire a professional. Too busy or just don’t feel like you have the skills to be successful? You can hire an expert to handle your protest. They will charge a fee, but Tax Tiger only charges you if they get your value lowered. Visit http://www.taxtiger.com/ for more information.

10. Don’t give up and continue to protest every year. Every time you protest, you have a chance to get your value lowered and pay less taxes. Even if you are not successful this time, don’t give up and give it a try next year. Ask a lot of questions at your hearing and try to learn as much as possible about how to succeed at the process. I have been successful for the past 2 years and have found both tax employees to be extremely helpful and friendly.

Property Tax Resources: http://www.window.state.tx.us/taxinfo/proptax/index.html

Property Taxpayers Bill of Rights: http://window.state.tx.us/taxinfo/proptax/bill_of_rights.html

 

Sources: http://www.traviscad.org/ (Travis Central Appraisal District) *  http://www.taxtiger.com/ * Texas Property Tax Code * Susan Combs, Texas Comptroller of Public Accounts: http://www.window.state.tx.us/taxinfo/proptax/index.html

Tammy is a licensed Realtor with Horizon Realty in Austin, Texas. An Austin resident since 1978, she's part of a Mother/Daughter Realtor team with over 27 years of combined experience. Tammy & Judy are experts at marketing and staging homes for top dollar. They specialize in the Wells Branch subdivision in North Austin and have helped Buyers, Sellers, and Investors in all parts of the city and surrounding areas.  You can reach Tammy at tammy@familypair.com or (512) 773-3214 or visit her site at http://www.familypair.com/.  

 

Thinking about upgrading? These updates are the best bangs for your buck. They are ones today’s Austin Buyers are most interested in and will give you the best return when selling your home.

1.     Lighting upgrades - replace brass and dated fixtures, update original bathroom light fixtures. Remove any fluorescent lighting.

2.     Painting - neutral earth tones (i.e. beige, sand) for interior, use subtle paint colors to highlight home’s architectural details & fireplace; make sure exterior shows no rotten wood and is painted at least every 7-10 years; avoid bright colors.

3.     Flooring upgrades - tile is most popular in kitchen & baths, use 12 x 12 size in natural materials such as stone or travertine; laminate and wood are great choices for living & formal dining; carpet in neutral colors (do not go too light) for bedrooms.

4.     Fan upgrades: replace any brass; upgrade especially in the common areas, i.e. living, dining. If budget allows, also replace bedroom fans.

5.     Light kitchen remodel - instead of a costly major renovation, consider some or all of the following: upgrade to stainless appliances, resurface or paint cabinets & add stylish hardware, upgrade lighting & flooring. If you can spend a little more update counters: granite & silestone are popular.

6.     Bathroom remodel - upgrade faucets, resurface or paint cabinets & add stylish hardware, upgrade lighting & flooring, upgrade mirror or inexpensively frame with wood, retile tub (use 12 x 12 size and select an attractive border around shoulder height using small tiles).

7.     Landscaping: add curb appeal to the front yard with flower beds, trees, and shrubs. For the backyard, take care of your sod and keep weeds at bay. Whenever you sell, yard maintenance will become a top priority.

8.     Covered patio: Austin is a hot climate and providing a shady area in your backyard is enjoyable to many Buyers (especially those with kids and pets).

9.     Faucet updates: replace kitchen and other bathroom faucets; when purchasing faucets, do not go for the cheapest or you will likely run into repair issues in the future and end up paying more in the long run.

10.   Front door: Adding an attractive front door is a great investment.

Keep in mind there are some home improvements that don’t pay off. In the Austin, Texas market, the following home improvements generally do not see a huge return on investment: gutters, windows, fences, vinyl siding. If you will live in your home for at least 5-7 years and really want the upgrade for your own enjoyment, then go ahead. However you may want to steer away if you are thinking you will get all your money back when it comes time to sell.

 

Tammy is a licensed Realtor with Horizon Realty in Austin, Texas. An Austin resident since 1978, she's part of a Mother/Daughter Realtor team with over 27 years of combined experience. Tammy & Judy are experts at marketing and staging homes for top dollar. They specialize in the Wells Branch subdivision in North Austin and have helped Buyers, Sellers, and Investors in all parts of the city and surrounding areas.  You can reach Tammy at tammy@familypair.com or (512) 773-3214 or visit her site at http://www.familypair.com/.  

1. Sold prices are holding steady. In September 2008, the median sold price was $181,855 compared to $183,500 in September 2009. Whereas housing prices are plummeting in many U.S. markets, the Austin market remain stable.

2. From 1998 to 2008, Austin-Round Rock was the #1 fastest-growing Texas metro area. It had a 43% increase in population demonstrating its popularity and solid growth.

3. Average days on market remains about the same as 5-year average. In Austin, the 5-year-average days on market was 62 days. The September 2009 average was 69 days showing homes are taking about the same amount of time to sell as they have during the past 5 years.

4. New home construction is picking up. A total of 2,185 permits were issued during 3rd quarter 2009, up 9.2% from 3^rd quarter 2008.

5. Some neighborhoods are experiencing high demand and strong sales.  According to the Texas A & M Real Estate Center “Hotness” Ranking, Areas 10S, 10N, SWW, & SWE (Southwest Austin), 3E (East Austin), N (North Austin) & 1N (Northwest Austin) rank at the top of the “Hotness” list due to high number of pending sales & sales plus faster than average days on market.

1. “You only get one shot to make a first impression” says Brenda Spencer of Spencer Staging & Redesign.  Making a strong, positive first impression gets your home sold for top dollar. 
   
2. Your home will sell for more money.  According to a Maritz study in the February 2009 Real Estate Staging Association statistics report, Buyers will pay 63% more for homes that have issues resolved and are in completely move-in ready condition.
3. Your home will sell faster. A 2008 study by the Real Estate Staging Association showed that staged homes had 85% - 89% less days on market than non-staged homes.
4.  In a down market, you will fare much better. Sometimes your home will be in a prime location or in hot demand. However if youare suffering from a down market or competition is stiff, staging will give you the extra edge needed to get your home noticed and sold.
5. You will get more showings since pictures will present your home better. The National Association of Realtors 2007 study showed 84% of Buyers begin their home search online. A staged home looks much better and drives more interest in your home, thus increasing the frequency of showings.   
6. Buyers can better imagine a purpose for each room. Stagers are experts at bringing out the most logical use of each room. For example, a formal dining room may not always be used as such. Professional home staging means each room is clearly identified and highlighted for maximum selling potential. 
7. Your home has been de-personalized and prepared for sale. Spencer says “removing clutter, taste-specific decor and collections” is a critical step in getting a home on the market. Potential Buyers are notorious for getting distracted by the Seller's belongings rather than appreciating the home's features.  Once the home is neutralized and de-personalized, it is easier for potential Buyers to see themselves living there.   
   
                                 
8. Professional home stagers are “in the know” on the most current home designing trends.  Most homeowners are not professional designers and do not have the expertise necessary to highlight the best features of their home. HGTV “Designed to Sell” designer Lisa LaPorta shares this list of 30 “Can’t Miss Staging tips” http://www.hgtv.com/real-estate/30-cant-miss-staging-tips/index.html.      
9. You’ll be ahead of the competition. The majority of homes on the market are not staged. Simply by hiring a Realtor with a proven staging partner means you are one step ahead.
10. Stagers have the right accessories when needed. Sometimes vacant homes need accessories to put their best foot forward. Picking the right colors and items on your own can be daunting, but a professional home stager does this with ease.

 

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Tammy is a licensed Realtor with Horizon Realty in Austin, Texas. An Austin resident since 1978, she's part of a Mother/Daughter Realtor team with over 27 years of combined experience. Tammy & Judy are experts at marketing and staging homes for top dollar. They specialize in the Wells Branch subdivision in North Austin and have helped Buyers, Sellers, and Investors in all parts of the city and surrounding areas.  You can reach Tammy at tammy@familypair.com or (512) 773-3214 or visit her site at http://www.familypair.com/.

Brenda Spencer is the Austin-area staging expert Tammy & Judy use to get their listings in show-ready condition. She has professionally staged over 250 homes. Brenda currently serves as the President of the American Society of Home Stagers & Redesigners http://www.ashsr.com/ as well as President of the Real Estate Staging Association, Central Texas Chapter, www.realestatestagingassociation.com. You can learn more about Brenda at http://www.spencerstaging.com/. Some photos courtesy of Brenda Spencer.

2. Not responding & adjusting to feedback from Buyers & Agents.  When we take a listing, we follow up on 100% of showings; we're always surprised to hear from clients who worked with Agents who gave them no feedback. It's very important for Sellers to know what Buyers & Agents think of their property.  If 8 out of 10 people objected to the bathroom wallpaper, it needs to be addressed. It's tough to hear negative feedback, but Sellers who respond to feedback sell their homes fastest.

3. Upgrading beyond the neighborhood norm. To compete successfully, upgrade your home according to the neighborhood norm: the average condition of other homes in the area. Often Sellers mistakenly over-improve resulting in too much money spent on upgrades that won't pay off.  Consult with an Agent before undertaking a major remodel to see if it will pay off. If only 5% of the homes in your neighborhood have sprinkler systems, then you don't need to add one to compete.

4. Failing to do a thorough deep clean. Preparing a home for sale is a daunting task. Getting your home sparkling clean is a top priority. The cleaner your home, the more assured the Buyer will be that your home is in top condition.  Windows and light fixtures should sparkle.  Kitchens and bathrooms deserve special deep-cleaning attention. Eliminate home odors (ask a friend to check for odors as many homeowners are desensitized to pet and other odors).  Refrain from potentially offensive cooking odors such as fish and strong spices while your home is on the market.    

5. Not compiling a detailed list of all upgrades completed.  Our goal is always to net our Sellers top dollar. One way we can justify a high asking price is with an itemized list of all upgrades the Seller has completed showing the grand total of money spent.  Sometimes Sellers are unable provide this list or don't keep records of their upgrades.  Even if you don't plan to sell now, start keeping a list of all upgrades including item, year completed, amount spent and running total. It's an invaluable marketing tool when you are ready to sell.

6. Ignoring curb appeal. It's not uncommon for a Buyer to drive by a house and decide if they want to see it or not based on exterior looks. If your house lacks curb appeal, you may be turning away Buyers even if it looks amazing inside. In real estate a book is judged by its cover.  Add blooming flowers and keep your lawn green and tidy.  It's an inexpensive way to attract Buyers.

7. Not de-cluttering enough. Hands down the biggest bang for your buck is decluttering your home.  Statistics show that this inexpensive home improvement can net you as much as 500% of your investment.  Sellers who don't de-clutter make their rooms look smaller, their home appear messy, and Buyers have a hard time visualizing their own belongings there. After you have de-cluttered your home, go through and de-clutter again.  Less is more when selling your home.

8. Staying at home during showings.  When a Seller remains at home, the Buyer will feel rushed and that they are intruding. We know our Sellers have kids, dogs, and life goes on even when a home is on the market.  But it's best to always vacate the house for a showing, even if you just take a walk around the block. You never know if this Buyer may be the one and if they really like your home, they will want to stay a longer time.

9. Being inflexible on price. The price you net for your house is determined by one primary factor: what a Buyer assesses your home to be worth. Buyers are the ones who determine selling prices, not Sellers. Today's Buyers are extremely savvy on neighborhood prices with a wealth of online information.  Few showings and negative price feedback? It's time to adjust price. Taking a tour with your Agent of the homes you are competing against (especially if they are priced lower) may be helpful.

10. Not staging your home to sell. After taking a listing, we always do a thorough walk-through with our Sellers and provide them with a to do list to stage each room to sell. When necessary, we pay to hire a professional home stager.  We completely understand how daily life and responsibilities make it difficult to prepare your home to sell. However, Sellers who work the hardest and come the closest to completing all necessary tasks will always outshine their competition. 

 Tammy is a licensed Realtor with Horizon Realty in Austin, TX. An Austin resident since 1978, she's part of a Mother/Daughter Realtor team with over 27 years of combined experience. Tammy & Judy specialize in the Wells Branch subdivision in North Austin and help Buyers, Sellers, and Investors in all parts of the city and surrounding areas.  If you enjoyed this blog, feel free to post the link to your favorite social networking site.  You can reach Tammy at tammy@familypair.com or (512) 773-3214 or visit her site at http://www.familypair.com/.