+12% in 77096/Westbury

Can't complain, but will protest

i really dont think this is a sustainable model. With inflation killing everyone and getting squeezed on the other end by more taxes coupled with the major rise in home prices, i think there are going to be a lot of people in real pain soon. This is a major problem in texas imo.

Just an FYI- the law changed in regards to Homestead Exemptions for 2022 and moving forward. You no longer have to be in your home prior to 1/1/2022 to file. If you purchase a home in that calendar year, you can apply for the HE. It is now the same as the over-65.

Just a heads up bc someone stated incorrect info earlier

So I can change my HE to my new home i close on on 01 APR?

Sea Speed said:

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So I can change my HE to my new home i close on on 01 APR?

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That is correct. Make sure your DL reflects the new address.

33% increase in market / 10% in appraised. Yay

Regarding the income tax vs property tax discussion- if you live in a house below your means you will come out ahead. Based on a 6% income tax, I could buy 2-3 of my current houses and still be ahead. I would like a bigger/nicer house, but why?

Mr. McGibblets said:

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Just an FYI- the law changed in regards to Homestead Exemptions for 2022 and moving forward. You no longer have to be in your home prior to 1/1/2022 to file. If you purchase a home in that calendar year, you can apply for the HE. It is now the same as the over-65.

Just a heads up bc someone stated incorrect info earlier

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I wasn't aware of this change (and what I posted is what's on the form on the HCAD website, so that hasn't even been updated, yet). So, let's clarify what part of the HE this change affects.

HE is really two parts…the portion where you aren't taxed on the first x dollar value if your home and the part where your annual assessed value increase is capped at 10%.

As I stated earlier the former takes effect as soon as you are granted HE (which has been set as the first year you own the home on Jan 1). But this part of HE isn't really relevant to this discussion.

As I posted previously, the 10% assessed value cap doesn't take effect until January 1st of the tax year following the first tax year the owner qualifies the property for a homestead exemption. I can't imagine them changing that because then they would never have the opportunity to reassess based on sales price.

This conversation comes up here every once in a while, and it always confuses people.

Follow up email from Century regarding Harris County. Some good info below:

Quote:

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Driven by a red-hot real estate market and rising sales prices of single-family homes, residential property values in Harris County are expected to rise by around 15%-30% when notices are sent out this spring, according to a March 17 news release from the Harris County Appraisal District.

For more than 95% of residential properties, the average increase will be higher than 20%, the county's Chief Appraiser Roland Altinger said. Homes in all price ranges saw value increases of 21% overall this year, including new construction.

"Value increases this year have been unprecedented," Altinger said in a statement. "In my almost 40 years in the real estate business, I have never, ever seen such large increases in market values."

HCAD reported the increases as the district prepares its annual mailing of value notices to property owners. Every year, the district sets out to determine the market value of every property in the county as of Jan. 1 using a process set by the Texas State Constitution. In 2021, residential properties in Harris County rose by around 8%-10%, according to HCAD.

Market valuethe amount a property is expected to sell foris largely informed by home sale prices as well as on-site inspections. The median sales price of single-family homes in Harris County was $300,000 in 2021, a 15.4% increase over 2020, when the median price was $260,000, according to the Houston Association of Realtors.

Meanwhile, population growth, low interest rates, supply chain issues and the rise in the number of people who work remotely have all increased demand for homes, leading to a more limited supply, according to HCAD.

After a home's market value is determined, exemptions are factored in as a way to lower property taxes. Properties with homestead exemptions are limited to a 10% increase, Altinger said.

In a statement, Altinger encouraged property owners to check online at HCAD's website to see what exemptions they are entitled to. More information can be found here.

Instead of determining the value of each property at the individual level, HCAD uses a process called mass appraisal to look at comparable properties in an area to determine a base level of market value. If property owners feel their properties have been assessed incorrectly, they can also protest them to have them lowered. Some experts encourage all property owners to protest their values as a general rule.

Commercial property values are also on the rise, increasing 18% overall, according to HCAD. Apartment buildings saw the highest increase among commercial property types, with value increases averaging 24% across the sector.

FYI

Sincerely,
Century Property Consultants
PH:+1(713)270-5953
FAX: +1(713)270-6326
www.cprotax.com

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The hell it is relevant. Prior to the law change, you were given no HE. Now that you can apply for it the same year, you get a discounted tax bill a year earlier and you get to start your base year 10% increase a year earlier.

This was you below. Your info was wrong. What I stated is the new law which benefits new homeowners.

cgh1999 said:

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33% increase in market / 10% in appraised. Yay

Regarding the income tax vs property tax discussion- if you live in a house below your means you will come out ahead. Based on a 6% income tax, I could buy 2-3 of my current houses and still be ahead. I would like a bigger/nicer house, but why?

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Well 6% is on the high end. I'd agree with what we have vs that. Isn't New York the highest with under 5%?

As far as living below your means, isn't that what everyone is talking about in terms of having no control over? I bought my house 10 years ago and the appraised value has gone up almost 2x. Can almost promise it'll pass that threshold next year. Most of that increase was in the past two years. Now it hasn't been a huge issue because we were early in our careers and our salaries were increasing just as much. But highly doubt that's the case the next 10-20 years.

So, if the current trends continue, my house appraised value could be at 4x the purchase price in 10 years. My salary probably won't be at 4x. Then add in the fact that every single bond gets approved and not hard to see peoples property tax bill doubling at none of their own doing.

htxag09 said:

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cgh1999 said:

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33% increase in market / 10% in appraised. Yay

Regarding the income tax vs property tax discussion- if you live in a house below your means you will come out ahead. Based on a 6% income tax, I could buy 2-3 of my current houses and still be ahead. I would like a bigger/nicer house, but why?

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Well 6% is on the high end. I'd agree with what we have vs that. Isn't New York the highest with under 5%?

As far as living below your means, isn't that what everyone is talking about in terms of having no control over? I bought my house 10 years ago and the appraised value has gone up almost 2x. Can almost promise it'll pass that threshold next year. Most of that increase was in the past two years. Now it hasn't been a huge issue because we were early in our careers and our salaries were increasing just as much. But highly doubt that's the case the next 10-20 years.

So, if the current trends continue, my house appraised value could be at 4x the purchase price in 10 years. My salary probably won't be at 4x. Then add in the fact that every single bond gets approved and not hard to see peoples property tax bill doubling at none of their own doing.

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Good point- I guess what I was trying to point out is the # of people who buy the biggest house they can afford. Without the consideration of future tax hikes.

If I bought the most expensive house a mortgage company said I could afford, my property taxes would be higher than a state income tax (adjusted down to 4.25% which is what it is in Louisiana). However, because we chose to buy (and stay in) a house that cost much less than I could afford, I'm saving on taxes comparatively.

I agree. And that's absolutely a factor that happens in general.

I think what jades me the most is that it's essentially for life. Kind of depressing that in 5 years, when i "own" my home, I'll still be paying close to a thousand dollars a month in property taxes.

Then the fact that it doesn't matter if you're unemployed, if you retire, etc. That property tax bill will come due. So if you plan long term, even if a state income tax will be $2k more a year, 5 years of that increase would be erased in 1 year of retirement.

Mr. McGibblets said:

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The hell it is relevant. Prior to the law change, you were given no HE. Now that you can apply for it the same year, you get a discounted tax bill a year earlier and you get to start your base year 10% increase a year earlier.

This was you below. Your info was wrong. What I stated is the new law which benefits new homeowners.

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Geez. Calm down. My previous post was not entirely incorrect. You still have to wait one calendar year for the 10% cap to go into effect, which is the discussion we were having when I made that post. We were specifically talking about the 10% cap, not the HE tax bill break. Everyone who bought a house in 2021 had their value reassessed effective Jan 1, 2022. That part of the process hasn't changed.

The only thing that was wrong about my post was that you no longer have to wait until you own/occupy the home on Jan 1 of the year to file for HE. But the HCAD form still has that date on it, so HCAD is still wrong, too.

But the 10% cap does NOT take effect immediately, which is the discussion we were having in the previous posts.

I can't believe that less than 5% of residential properties have HE/the 10% cap this year. That number seems crazy low.

Yep. Capping the year over year increase to 10% is the key here. People that bought homes in 2021 are going to get hammered really soon.

Cromagnum said:

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Yep. Capping the year over year increase to 10% is the key here. People that bought homes in 2021 are going to get hammered really soon.

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Exactly. I don't even really give a flip about the "discount" on my tax bill due to the $20k exemption (or whatever it is) because the biggest taxing entity I pay (the ISD) doesn't even honor it. They tax us on the full assessed value, HE or not. The reduction in my tax bill is minimal.

But the 10% cap is huge.

htxag09 said:

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I agree. And that's absolutely a factor that happens in general.

I think what jades me the most is that it's essentially for life. Kind of depressing that in 5 years, when i "own" my home, I'll still be paying close to a thousand dollars a month in property taxes.

Then the fact that it doesn't matter if you're unemployed, if you retire, etc. That property tax bill will come due. So if you plan long term, even if a state income tax will be $2k more a year, 5 years of that increase would be erased in 1 year of retirement.

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It almost forces you to downsize in retirement.

cgh1999 said:

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htxag09 said:

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I agree. And that's absolutely a factor that happens in general.

I think what jades me the most is that it's essentially for life. Kind of depressing that in 5 years, when i "own" my home, I'll still be paying close to a thousand dollars a month in property taxes.

Then the fact that it doesn't matter if you're unemployed, if you retire, etc. That property tax bill will come due. So if you plan long term, even if a state income tax will be $2k more a year, 5 years of that increase would be erased in 1 year of retirement.

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It almost forces you to downsize in retirement.

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Not necessarily. Your assessed value is frozen when you turn 65, right (assuming you turn in the paperwork)?

So, all those people who had their taxes frozen in the last 5-ish years are sitting pretty right now, regardless of what size house they live in. Especially if they protested their value regularly before it was frozen.

But, if they sell now and downsize, the new property would be reassessed. The way prices are right now, I think a retiree could downsize and end up paying MORE in property taxes. A lot of that depends on how long they've had the over 65 exemption, though.

This doesn't bode well for the housing market, though, because it partially depends on people downsizing to create inventory.

Yep. That's probably just one more contributor to the tight supply of homes for sale.

Has anyone had success changing their condition (from good to average) or fighting for economic misimprovement?

TXTransplant said:

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Cromagnum said:

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Yep. Capping the year over year increase to 10% is the key here. People that bought homes in 2021 are going to get hammered really soon.

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Exactly. I don't even really give a flip about the "discount" on my tax bill due to the $20k exemption (or whatever it is) because the biggest taxing entity I pay (the ISD) doesn't even honor it. They tax us on the full assessed value, HE or not. The reduction in my tax bill is minimal.

But the 10% cap is huge.

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The ISD doesn't honor the reduction in assessed value? That's a new one to me.

Years ago I did. It was a pretty easy argument though. There own description of a "total remodel" or whatever they call it stated it was good or better than new construction.

While I liked the home I bought, more than half of it hadn't been updated in 10 years plus and it was pretty average materials.

I was able to get them to drop my condition multiple down one level, which has saved me thousands of dollars over the years.

Thanks for the response - think I'm going to battle this more than the $$. That seems to be the long play here.

SnowboardAg said:

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Thanks for the response - think I'm going to battle this more than the $$. That seems to be the long play here.

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They key on kitchens, flooring, and bathrooms. Take pictures that make it look lower grade than it is.

TXTransplant said:

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cgh1999 said:

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htxag09 said:

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I agree. And that's absolutely a factor that happens in general.

I think what jades me the most is that it's essentially for life. Kind of depressing that in 5 years, when i "own" my home, I'll still be paying close to a thousand dollars a month in property taxes.

Then the fact that it doesn't matter if you're unemployed, if you retire, etc. That property tax bill will come due. So if you plan long term, even if a state income tax will be $2k more a year, 5 years of that increase would be erased in 1 year of retirement.

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It almost forces you to downsize in retirement.

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Not necessarily. Your assessed value is frozen when you turn 65, right (assuming you turn in the paperwork)?

So, all those people who had their taxes frozen in the last 5-ish years are sitting pretty right now, regardless of what size house they live in. Especially if they protested their value regularly before it was frozen.

But, if they sell now and downsize, the new property would be reassessed. The way prices are right now, I think a retiree could downsize and end up paying MORE in property taxes. A lot of that depends on how long they've had the over 65 exemption, though.

This doesn't bode well for the housing market, though, because it partially depends on people downsizing to create inventory.

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I don't know. I guess I just disagree with most of what you said. Don't get me wrong, locking in the value absolutely helps.

But I wouldn't call it "sitting pretty." Take my old neighbors for example. They downsized and bought a townhome in the city a couple years before me (so about 12 years ago). So they probably bought around $250k. They turned 65 a couple years ago, so say the value was locked in at $430ish. Again, very fortunate they aren't seeing the 10% this year and inevitable 10% next year. But still, look at the whole picture. They bought their house when they were around 55. From that point on their salaries were highly likely static. Now, they're retired. But their tax bill would probably at least 75% higher than when they bought their house, had they stayed.

Where are these ITL townhomes bought for $250K and worth around twice that now?

We completed a 2021 purchase in 77079 and received a 35.387% increase!

The protest should at least be entertaining. Lots of ammo to choose from on our street and all the others, including the fact that we are now 120k over the neighbors on market and appraised, and their house is over 1,000 more sqft

How close is the appraised value to what you paid though?

Cromagnum said:

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TXTransplant said:

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Cromagnum said:

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Yep. Capping the year over year increase to 10% is the key here. People that bought homes in 2021 are going to get hammered really soon.

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Exactly. I don't even really give a flip about the "discount" on my tax bill due to the $20k exemption (or whatever it is) because the biggest taxing entity I pay (the ISD) doesn't even honor it. They tax us on the full assessed value, HE or not. The reduction in my tax bill is minimal.

But the 10% cap is huge.

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The ISD doesn't honor the reduction in assessed value? That's a new one to me.

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I don't believe they do. I know at least one of my taxing entities doesn't, and I'm pretty sure it's the ISD. I'll double check, though.

They also refused to recognized the temporary revised assessments HCAD did for the properties that flooded during Harvey.

Diggity said:

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Where are these ITL townhomes bought for $250K and worth around twice that now?

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Well you were our realtor when we bought ours 10 years ago for $280K. Neighbor just listed theirs for $495K and were pending within 2 days. I said $250k, because they bought a few years before us, so really just guessing.

Wow. Didn't realize they had gone up that much.

These are the Sandcastles? You'll have to forgive my screen name memory

In any case , I would doubt their freeze hit at near that value. You should be able to look it up on HCAD

Yeah, sand castle, near 10 and shepherd. They sold so it's a moot point. Just using as a rough example of how someone can buy when they're around 50/55, and the increased values before the value freezes could still cause issues when they retire….

It's an unusual time for sure. I just think the idea that people are getting forced out of their homes because the values get too high is overblown. If it truly becomes an issue, there are lots of options to tap into that increased equity.

I also thought our high property taxes would serve to slow the crazy appreciation that we've historically seen in other parts of the country. That has proven to be incorrect.

For sure. I didn't bring it up in that people are homeless because of it. Just bringing it up as it is a factor when comparing states like texas with a property tax to states like Colorado with a state income tax.

No change in 77005.

Stunned, but I'll take it.