The Change Jar - Property Tax Appraisals

It is that time of year again. The mail brings those pesky property tax appraisals. How closely do you look at them? Do you notice the percentage by which the appraisal increased? What about the Homestead Exemption.

Now is the perfect time to really look at your appraisals. It can save you a lot of money! Recently, I was asked to help someone prepare to protest the appraised value for their property. The property value had been increased by 56% for structures only. This was for a rural home, barns and land. I suggested the property owners get a written statement from a realtor on market value and a replacement estimate for the shops and barns. They also requested the "worksheet" from the appraisal office. The "worksheet" is what the valuation is based upon. That worksheet was an eye opener! It was completely wrong. The "worksheet" showed overstated square footage for the shop, house, and barns, two sets of porches on the house, and a large enclosed carport. Even with the gross exaggerations, it still took multiple trips to the appraisal office.

The state does have limits on the amount that your property values can be raised each year. Many times, the appraisal districts bank on property owners not protesting the appraisals. They have nothing to loose. Our property value is raised each year and each year we protest. The result is always a reduction in the appraised value. In fact this year, it was decreased to an amount lower than last year's value. Stop hyperventilating - tax appraisal values are not the same as the market value of the house unless the house is less than two years old.

I have listed some of the steps to take to protest your property tax appraisal below. There is also a free kit available at www.AHAhome.com that is helpful. Yes, it does take a little work, but is worth it!

Protest Tips

• Do it yourself or ask a friend. DO NOT use anyone who says that they can lower your appraisal for a fee!
• Verify the square footage of your home
• Check values for similar homes in your area. Checkout http://realestate.yahoo.com/Homevalues.
• Check recent sales prices in your neighborhood. A realtor should be able to assist you with this. I have never had a problem getting one to pull up the MLS that shows the houses recently sold and still on the market in your area.
• Take pictures of issues within the house that would lower the value. Examples are walls that have been colored on, old faucets and fixtures, bad carpet, roofing issues. Take advantage of free estimates on getting the items repaired. It is hard for the appraisal officer to argue with a written estimate.
• Rural properties should ask for the "worksheet" that is being used. Make sure that there are no extra structures and that all measurements are correct.