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HCAD Protest Question

12,171 Views | 12 Replies | Last: 4 yr ago by ggood
DartAg1970
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AG
So I bought my new house in 2015. I have already begun filing for homestead exemption, but i am having difficulty understanding the protest process.

My problem:

When I bought the house I contacted the builder because the stated square footage just didn't seem right to me. I have since received a copy of the builders floor plan with the square footage. Come to find out the appraised square footage is off by almost 400 square feet. HCAD states 3,181 and actual is 2,799.

It seems as though the HCAD website is saying for issues like this they will not make any changes unless the impact changes the value of by more than 1/3. This doesn't seem right because that means I am stuck paying more taxes each year (even if it is a small amount) than I should be.

The math indicates that my value would have to impacted by $77,000 in either direction before they will make a change but if they were using the correct square footage my value would go down $30,000-$35,000, which at a tax rate of 3.4% would mean a difference of roughly $1,000 a year. I realize that isn't significant, but I like to have things be correct.

Does anyone have any experience with this to know if the 1/3 value impact is true?
Martin Q. Blank
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You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.
JJxvi
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AG
Usually when "1/3" and "correction" are used together it is regarding one of the avenues a property owner can use to protest the value of their property.

Usually a property owner can file a protest prior to May 31 if they feel their value is over market value or unequal compared with others (by any amount).

However, there is a second avenue to file for a correction in value which can be filed prior to the delinquency date (usually Feb 1 of the next year) as long as the error in the value of the property is more than 1/3 of the actual value of the property (In practice this means you have to convince a board that the real value of the property is 75% or less of what the previous value on the roll was). Again this involves a protest of the prior year values after the protest deadline has passed, typically. I've never heard of a blanket position on changing square footage and certainly not something that could be as significant as 1/3 could be.

Basically what you need to do to fix this is protest your property in 2016 and convince HCAD that this error exists, or in the future convince ARBs in a protest hearing to reduce your value because it must be less if HCAD has the wrong square footage. Based on the amount you are different it makes me wonder if there is an issue regarding accounting for a 2 car garage. You have an attached garage maybe that HCAD is including in the finished space and not excluding?
JJxvi
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AG
I also recommend looking at the chart labelled building areas at the bottom of your HCAD record online to try and discover the issue.

It will have information like this below.

Building Areas
Description, Area
BASE AREA PRI, 2,614
OPEN FRAME PORCH PRI, 174
WOOD DECK PRI, 315
OPEN MAS PORCH PRI, 225
FRAME GARAGE PRI, 644
BASE AREA UPR, 1,679

The listed square footage for this example will be 4,293 which is the lower and upper base areas or the total area excluding the decks, porches and the garage. Analyzing this may help you discover where the error is and help you convey to the cad what the problem really is.
AgBrad08
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Good advice in both posts from JJxvi

The 1/3 is for a correction hearing. Going back and getting the 2015 value corrected would first require you to show that it affected the value by more than 1/3. Then you would have a chance to prove the difference.

Getting it fixed for 2016 should be a little easier. I agree you should check out the bulding areas, and try and see if you can tell where the extra square footage is.

This early in the year you can potentially call and get it fixed before notices go out. I don't know what they would want to verify, or if they would send someone by to check the measurements. If not, protest the value and check the boxes that apply.
drumboy
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AG
quote:
You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.

Argue U&E and not sales comps and it doesn't matter what you paid.
DartAg1970
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AG
quote:
I also recommend looking at the chart labelled building areas at the bottom of your HCAD record online to try and discover the issue.

It will have information like this below.

Building Areas
Description, Area
BASE AREA PRI, 2,614
OPEN FRAME PORCH PRI, 174
WOOD DECK PRI, 315
OPEN MAS PORCH PRI, 225
FRAME GARAGE PRI, 644
BASE AREA UPR, 1,679

The listed square footage for this example will be 4,293 which is the lower and upper base areas or the total area excluding the decks, porches and the garage. Analyzing this may help you discover where the error is and help you convey to the cad what the problem really is.

Yeah I figured out the problem. I have a two story living room which they did not count as one room but rather two different rooms one of the 1st floor and another on the 2nd floor.
Martin Q. Blank
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quote:
quote:
You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.
Argue U&E and not sales comps and it doesn't matter what you paid.
Yes, but OP is arguing square footage. HCAD will correct the square footage, but not the market value since it will be based on the sale price. Unless he can prove he overpaid based on false information from the builder.
cheezag03
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AG
quote:
quote:
You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.

Argue U&E and not sales comps and it doesn't matter what you paid.
U&E = unequal?
AgBrad08
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quote:
quote:
You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.

Argue U&E and not sales comps and it doesn't matter what you paid.
Always protest and argue both.
aggiebq03+
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quote:
quote:
quote:
You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.
Argue U&E and not sales comps and it doesn't matter what you paid.
Yes, but OP is arguing square footage. HCAD will correct the square footage, but not the market value since it will be based on the sale price. Unless he can prove he overpaid based on false information from the builder.

If it's new build I don't see how they could use sales price. It's worth what you could resell it for, which is nowhere near the new build price.
drumboy
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AG
quote:
quote:
quote:
You can protest the sq. ft. change, but the value will remain the same...since that's what you paid. Unless you can claim some sort of fraud on the builder's part and that you are suing them.

Argue U&E and not sales comps and it doesn't matter what you paid.
U&E = unequal?
Uniform & Equal. Arguing that other similar homes in the area are appraised lower.
Scienceartist2217
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AG
What does PRI mean?-Thanks
ggood
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I think PRI means "Primary". I've been working with their data recently and have seen LWR = "Lower", UPR = "Upper" and "PRI" = "Primary (I think)". It correlates with the building sketches they have. In most cases I don't see square footage associated with "LWR" (lower) unless it is something like a townhome where there are 3 stories and the bottom floor (LWR) is mainly just a garage. This would make the second story the the "Primary" living space and the third floor the UPR living space. In most cases if it a one or two story single family residential the bottom floor is the "PRI" or Primary living space.
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