A is A said:

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Morning!

I am new to Houston. Been in CT for the last 10 years. Just got a letter that my ARB Hearing is on 7/29. I did not know I submitted for a hearing.

It looks like they have the property value changing from 313,883 to 365,860. We bought the home for 373,000 back in November. It is a dramatic increase but the previous owner had two exemptions, and the 365860 is listed without our homestead added (still says pending).

Questions: is it worth going to the ARB Hearing. What are they looking for or asking for? Is it worth my time? How much will the Homestead lower my taxes?

Sorry for the questions - new to the area and this whole process is completely new to us.

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Howdy!

You should see 2 values: Market and Appraisal (set as of 1/1/21). Appraisal is the value they will assess taxes on. The market is the value they say it is worth. They can only increase the appraised value by 10% per year so they will do so until the Appraised Value = Market value (but each subsequent year they probably will have moved your market value again).

In the year you buy the home, the 10% limit does not apply and they adjust your value to whatever they determine is the value, usually the selling price. In your case, its not worth disputing because your paid value is higher than they have assessed. Going to dispute, they are entitled to raise it more if they determine what you paid.

You cannot use the Homestead exemption in you first year of ownership. You can get it now but wont apply until next year (HS Exemption is usually ~20% off appraised value).

I think that covers your questions.

It depends what kind of protest. There are two types of value protests. Market and Unequal Appraisal

In order to do anything at your ARB hearing (and assuming the protest was filed for both reasons listed above), you will likely need to bring some pretty compelling evidence that your home is unequally appraised (that other properties similar yours are being appraised at lower value after being properly adjusted). Market is unlikely to go anywhere since you paid more than the market value they are assessing shortly before the assessment date (January 1). Maybe if you had to make significant unexpected repairs or got an estimate for repairs for a problem that still existed as of January 1 you may have a market case.

As for your homestead exemption, when it is applied it will lower the amount that you will pay in your bill somewhat, but those bills will still be based on $365,860 (next year you will have a max increase cap of 10% which will be shown as a lower "appraised value" if it comes into play). If you paid the bills for the 2020, I would not use those to predict what you'd pay for this year. If the prior owners had an over 65 exemption (and they may have since you said they had 2 exemptions), the tax for them could potentially be extremely low compared to what you will pay for this year.

aTm_bomb said:

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A is A said:

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Morning!

I am new to Houston. Been in CT for the last 10 years. Just got a letter that my ARB Hearing is on 7/29. I did not know I submitted for a hearing.

It looks like they have the property value changing from 313,883 to 365,860. We bought the home for 373,000 back in November. It is a dramatic increase but the previous owner had two exemptions, and the 365860 is listed without our homestead added (still says pending).

Questions: is it worth going to the ARB Hearing. What are they looking for or asking for? Is it worth my time? How much will the Homestead lower my taxes?

Sorry for the questions - new to the area and this whole process is completely new to us.

---

Howdy!

You should see 2 values: Market and Appraisal (set as of 1/1/21). Appraisal is the value they will assess taxes on. The market is the value they say it is worth. They can only increase the appraised value by 10% per year so they will do so until the Appraised Value = Market value (but each subsequent year they probably will have moved your market value again).

In the year you buy the home, the 10% limit does not apply and they adjust your value to whatever they determine is the value, usually the selling price. In your case, its not worth disputing because your paid value is higher than they have assessed. Going to dispute, they are entitled to raise it more if they determine what you paid.

You cannot use the Homestead exemption in you first year of ownership. You can get it now but wont apply until next year (HS Exemption is usually ~20% off appraised value).

I think that covers your questions.

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So appraised and Market are the same 365,860.

The previous owners had a tax company (texasprotax) that handled theses disputes. I just got off the phone with them, they started the dispute but then cancelled (cause the account got closed).

Am I understanding that I should just cancel the ARB? because appraised and market are the same, plus the 10% jump is not applicable, nor is the homestead.

If I understand that correctly, let me know. THanks!

they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

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fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

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how does one do this? Just bring print outs of comps that are way under mine?

You'll need to adjust then to account for the differences jn grade, sf, condition and such.

A is A said:

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Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

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fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

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how does one do this? Just bring print outs of comps that are way under mine?

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To fight on unequal appraisal you'll need to bring comparable houses and their hcad appraisal evaluations.

2nd, be prepared for them to throw it out. As for just because you paid more doesn't mean your house is worth that? That's exactly what it means. If you bought your house for $450, pretty easy to argue the house is worth $450.

A is A said:

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Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

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fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

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how does one do this? Just bring print outs of comps that are way under mine?

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Use Jubally and they'll give you the comps to use to show unequal appraisal for your U&E argument.

drumboy said:

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A is A said:

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Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

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fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

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how does one do this? Just bring print outs of comps that are way under mine?

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Use Jubally and they'll give you the comps to use to show unequal appraisal for your U&E argument.

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Not sure how to read your comment with the winking face. Seems sarcastic - but hard to tell with this thread.

Highly recommend jubally. Great service.

htxag09 said:

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A is A said:

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Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

---

fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

---

how does one do this? Just bring print outs of comps that are way under mine?

---

To fight on unequal appraisal you'll need to bring comparable houses and their hcad appraisal evaluations.

2nd, be prepared for them to throw it out. As for just because you paid more doesn't mean your house is worth that? That's exactly what it means. If you bought your house for $450, pretty easy to argue the house is worth $450.

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Agree - what you paid is what it is worth to HCAD.

My opinion is to find something broken in the house. Get a general contractor to come out and give quote to fix it. Take quote to ARB and tell them the house has broken since i purchased it and "i need a break." Prepare yourself for them to talk about specific dates of value, etc.

If you take a pic with an orphan baby next to a moldy wall and a 12k quote to fix it...you're set!

evestor1 said:

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htxag09 said:

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A is A said:

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Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

---

fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

---

how does one do this? Just bring print outs of comps that are way under mine?

---

To fight on unequal appraisal you'll need to bring comparable houses and their hcad appraisal evaluations.

2nd, be prepared for them to throw it out. As for just because you paid more doesn't mean your house is worth that? That's exactly what it means. If you bought your house for $450, pretty easy to argue the house is worth $450.

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Agree - what you paid is what it is worth to HCAD.

My opinion is to find something broken in the house. Get a general contractor to come out and give quote to fix it. Take quote to ARB and tell them the house has broken since i purchased it and "i need a break." Prepare yourself for them to talk about specific dates of value, etc.

If you take a pic with an orphan baby next to a moldy wall and a 12k quote to fix it...you're set!

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My first year I had paid $485K and was appraised at a little north of that. HCAD new the sell price, but I protested under unequal / fair anyway. I took Jubally's report and used the data to make my own spread sheet in excel because I know they hate Jubally. I adjusted some stuff and removed extra comps that didn't help my case as much (those further than 200sq/ft or price that was an outlier) and only presented the 5 that helped my case the most. I also got quotes for some stuff that I wasn't really planning to do, but were plausible in the eyes of HCAD (new roof, replace electrical because of aluminum, new HVAC, etc). I told them it needed to be done, but wasn't in the budget and the house hadn't been renovated like the others.

In the end they agreed to more than I asked and knocked my value down to like $419k based on what I presented. 6 years later and my appraised value still isn't as much as I paid for the home because I've contested it every year. Similar neighbors are now paying almost 50% more than me that bought around the same time because they're too lazy or ignorant to do so.

My opinion;

• Pay the $75 for Jubally
• Use their data to make your own analysis and KNOW your arguement. Then present it as your own.
• Get creative with major deficiencies / costs in your home and get quotes from big name contractors that are expensive.
• If you haven't gutted or done a major reno like other homes in the neighborhood stress that.

All they can say is no, but if they say yes it can save you $15K-$20K in taxes in less than a decade and 6 figures in 3 decades.

6 figures? At 3% your savings on a 419k vs 628k(1.5x) house is only 60 grand or so in a decade. Nothing to scoff at, for sure, but not quite 6 figures.

Your point is still 100% valid, and not arguing that. Hell I wish jubally did my county cause I'd be on your system.

AgLA06 said:

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evestor1 said:

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htxag09 said:

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A is A said:

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Bondag said:

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A is A said:

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they had the over 65 as well. Thanks for the info. It sounds like 365860 is the best I'll get. it just sucks when all the houses on my street are more sqft and more land, yet are assessed nearly 50k under mine.

---

fight it with unequal appraisal. Just because you paid more doesn't mean your house is worth that.

---

how does one do this? Just bring print outs of comps that are way under mine?

---

To fight on unequal appraisal you'll need to bring comparable houses and their hcad appraisal evaluations.

2nd, be prepared for them to throw it out. As for just because you paid more doesn't mean your house is worth that? That's exactly what it means. If you bought your house for $450, pretty easy to argue the house is worth $450.

---

Agree - what you paid is what it is worth to HCAD.

My opinion is to find something broken in the house. Get a general contractor to come out and give quote to fix it. Take quote to ARB and tell them the house has broken since i purchased it and "i need a break." Prepare yourself for them to talk about specific dates of value, etc.

If you take a pic with an orphan baby next to a moldy wall and a 12k quote to fix it...you're set!

---

My first year I had paid $485K and was appraised at a little north of that. HCAD new the sell price, but I protested under unequal / fair anyway. I took Jubally's report and used the data to make my own spread sheet in excel because I know they hate Jubally. I adjusted some stuff and removed extra comps that didn't help my case as much (those further than 200sq/ft or price that was an outlier) and only presented the 5 that helped my case the most. I also got quotes for some stuff that I wasn't really planning to do, but were plausible in the eyes of HCAD (new roof, replace electrical because of aluminum, new HVAC, etc). I told them it needed to be done, but wasn't in the budget and the house hadn't been renovated like the others.

In the end they agreed to more than I asked and knocked my value down to like $419k based on what I presented. 6 years later and my appraised value still isn't as much as I paid for the home because I've contested it every year. Similar neighbors are now paying almost 50% more than me that bought around the same time because they're too lazy or ignorant to do so.

My opinion;

• Pay the $75 for Jubally
• Use their data to make your own analysis and KNOW your arguement. Then present it as your own.
• Get creative with major deficiencies / costs in your home and get quotes from big name contractors that are expensive.
• If you haven't gutted or done a major reno like other homes in the neighborhood stress that.

All they can say is no, but if they say yes it can save you 6 figures in taxes in less than a decade.

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Ha same thought

DP

60 grand in a decade at 419 and 1.5x, which were your numbers. Thats practically a new Ford ranger.

I was doing too many things as once and was think total taxes, not saving in my math.

Assuming I keep it below the purchase price the first decade instead of the 10% max they've tried to bump it should save me about $15K and I'm not as well off as the average TexAgs millionaire.

Just for fun I ran the numbers and the 6 figure mark would be about 27 years for me. So not that unfeasible for people in the villages or West U or Rice to be able to save 6 figures in a decade based on much higher rates.

Yep. And it's probably closer to 2-2.5% tax rate after homestead.

Pretty sure like most of Houston I'm 2.56%

So ~2%

Yea I wasn't trying to solve the singularity or anything.

I just added my rates up on my 2020 tax bill and it came to 2.399396%. Actual rate is less as full value isn't applied across the board, various exemptions, taxable value depending on the taxing jurisdiction.

When I take the actual $ of taxes due and divide by my appraised/market value the rate is 1.85%.

Diggity said:

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So ~2%

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2020 appraisal - $200k
2021 appraisal - $303k

I successfully protested in front of the board for a reduction to $175k.

this the house with the sewer pipe running under it? that would be a compelling argument

Yes. The lowest value I've had since 2013. The house next to mine which would be a good comp is valued $550k.

good work.

Diggity said:

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this the house with the sewer pipe running under it? that would be a compelling argument

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You mean the house sanitary has issues under it or a city sewer main under it has issues!?!

It is a 10' wide storm water sewer. The city has a 20' wide easement which encumbers the entire house.

Holy S*@$. How did that happen?

ChipFTAC01 said:

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Highly recommend jubally. Great service.

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When using Jubally, do you just follow their instructions? Im sure HCAD sees just standard Jubally packets and shrug them off, no?

Do you add more data? change it up a bit but rely on Jubally data?



Edit - spent the 75. says that Jubally Valuation is 335,537 (vs the HCAD 365).