💸 🏘️ Understanding Your Property Appraisal in Houston: What Every Homeowner Needs to Know.

Written By Frosy Trapezountios-Graf

That time of year is here again, Houston and Texas homeowners – the arrival of your annual property appraisal letter! While it might feel like just another piece of mail, it's crucial to understand what this document means for your wallet. Let's break down why this appraisal matters and what you can do about it.

Why it Matters

Your property's appraised value, as determined by your local tax district, directly impacts the amount of property taxes you'll pay. It's the baseline figure that taxing entities use to calculate your tax bill. Now, here's a key point to remember: this appraised value is not necessarily the same as your home's current market value. Market value fluctuates based on supply, demand, and recent sales in your neighborhood, while the appraisal is a snapshot in time used specifically for taxation.

It’s important to understand that the CAD’s market value is not the same as what your home would actually sell for or what it was appraised for when you purchased it.

  • CAD Value: Based on bulk data, software models, and mass appraisals. It’s a rough estimate designed for taxing purposes — not individualized.

  • Market Value (CMA): A custom market analysis based on comparable homes, condition, location, and features. This is what you’d actually price your home at if you listed it for sale.

  • Lender Appraisal: When you bought the home, the bank hired a licensed third-party appraiser to determine the home’s value. This was done to protect the lender and ensure the property was worth at least what you paid. If the value didn’t support the price, the bank would not have approved the loan

    You Have the Power to Protest!

The good news is that if you disagree with the appraised value, you have the right to protest it! Your tax district provides a formal process for you to challenge the valuation. There are generally two main avenues you can pursue:

  • Do-it-Yourself Protest: You can gather evidence to support your claim that the appraised value is too high. This might include recent sales data of comparable homes in your area (often called "comps"), photos of any significant damage or deferred maintenance on your property, or even independent appraisals. You'll then submit this information to your appraisal district, often through an online portal, by mail, or in person.

  • Engage a Property Tax Protest Company: Several companies specialize in handling property tax protests on behalf of homeowners. They typically work on a contingency basis, meaning they only get paid if they successfully lower your appraised value. While this saves you time and effort, it does come with a cost, usually a percentage of the tax savings they achieve.

Tips for a Successful Protest:

  • You are not required to disclose your purchase price to the appraisal district — and you probably shouldn’t.

  • Act Quickly: There's a deadline to file your protest, usually within a certain number of days from the date on your appraisal notice. Don't delay!

  • Gather Solid Evidence: The more compelling your evidence, the stronger your case. Focus on comparable sales that are recent, located in your immediate neighborhood, and similar in size, age, and condition to your home.

  • Be Respectful and Professional: Whether you're dealing with the appraisal district directly or through a company, maintain a polite and professional demeanor throughout the process.

  • Understand the Process: Familiarize yourself with your local appraisal district's specific procedures and deadlines for filing a protest. Their website is usually a great resource.

What is next

Your next step is to carefully review the appraisal letter you received. Compare the appraised value to what you believe your home is truly worth based on recent market activity in your Houston neighborhood. If you feel the value is too high, start gathering your evidence or research reputable property tax protest companies in the area. Don't let a potentially inflated appraisal cost you more in property taxes than you should be paying! Take action and exercise your right to protest.

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​Homeowners in the Greater Houston area can protest their property tax appraisals through their respective county appraisal districts. Below are the official websites for each county where you can find information on how to file a protest:

Each website provides detailed instructions on how to file a protest, important deadlines, and contact information for assistance. It's essential to review the specific guidelines for your county to ensure a timely and accurate protest filing

Frosy Trapezountios-Graf
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