Every year, Texas property owners eagerly await their property tax assessments like kids waiting for Christmas morning. Sometimes, they open the envelope to find a pleasant surprise—a decrease in their valuation. But more often than not, it’s like getting socks as a gift—up, up, up they go, leaving homeowners scrambling to find loopholes faster than a cat chasing a laser pointer. Us property owners typically prefer increased value only when preparing to sell. Because let’s face it, nobody wants to pay more taxes than they have to, except maybe the IRS. So, here’s our cheat sheet on how to fight the tax man and keep that hard-earned cash where it belongs: in your pocket, not in some government coffers.
First! Check Your Property Tax Deets
Alright, before you dive headfirst into battling the tax man, take a breather and do a quick once-over of your property tax record. This record, held by your local county appraisal district, is like the birth certificate of your home—it lays out all the nitty-gritty details used to slap a price tag on your place.
Make sure all information is accurate:
- Lot Size
- Home’s Total Square Footage
- # of Bedrooms & Bathrooms
- # of Garage Bays
- Year Home was Built
- Check for improvements like a pool, outdoor kitchen, etc.
Oh, and one last thing—if you qualify, make sure you’ve signed up for perks like the Homestead Exemption or any other sweet discounts, like if you’re a wise old sage over 65 or have a disability. (see below)
Next, File for Those Exemptions!
Alright, let’s talk exemptions—those magical little things that can sprinkle some tax-saving fairy dust on your property. So, in Texas, property tax isn’t just some state-level thing; it’s all about your local community throwing its own tax party. Think school districts, mud districts (no, not the kind you find after a rainy day), counties, cities, emergency services—everyone wants a slice of the tax pie.
Now, these taxes might not be the most exciting thing to talk about, but they’re the backbone of funding for schools, roads, keeping the peace with police and firefighters, and even sprucing up your neighborhood with cool stuff like libraries and parks.
But fear not, dear homeowner, because there’s a silver lining in this tax cloud: the Homestead Exemption. It’s like the golden ticket for homeowners and their main digs. Not only does it shave some dollars off your property taxes, but it also throws in a few extra perks for good measure.
But wait, there’s a catch (isn’t there always?). You gotta apply for these exemptions, and you better hustle because the deadline is April 30th! So get to applying!
You can read more about all exemptions available to you on each county’s appraisal district websites here for: Fort Bend County, Harris County, Waller County and Austin County.
Now You’re Ready to Protest!
Compile Data
Alright, time to gear up for the ultimate showdown with the tax man! If you’re taking on the challenge solo, you’ll need to arm yourself with some hard-hitting facts. But if you’re feeling like calling in the reinforcements (aka tax protest consultants), just know they’ll be taking a slice of your tax savings pie—kinda like having a friend help you move but charging you in pizza slices. (More on that at the very end of this novel!)
Sales Comps (psst I can help)
First up, you gotta get your hands on some sales comps—basically, what your home would’ve sold for as of January 1st. Yeah, it’s like time-traveling back to New Year’s Day. Reach out to a savvy real estate agent and sweet talk them into hooking you up with this juicy data.
Find Similar Homes
In most neighborhoods, there’s a good chance you’ll find several homes identical to yours. If you spot them and can prove to the appraisal district that they got a better deal, it’s a strong case for lowering your assessment.
Tracking down these twins isn’t always a walk in the park, but a cruise through your neighborhood and the ones nearby should do the trick. Once you’ve spotted them, hop online to the appraisal district’s website to confirm the details and check out the builder’s name in the deed history. Find the closest matches and present them as evidence for lowering your assessment.
Document Repairs Needed
Grab your camera and start snapping shots of any maintenance tasks you’ve been putting off around the house, along with estimates for fixing them up. With all the chaos from Houston’s flooding, freezing, and wind storms, now’s the perfect time to make a long list of all the honey-do’s you’ve ignored.
From downed fences to dead landscaping and busted pipes, make a list of everything that needs attention. Even if it’s just your furry friend’s handiwork on the front and back doors or those pesky stained carpets, jot it down. Then, tally up the costs and provide detailed photos to support your protest. These fixes can seriously sway your home’s value.
And if you need a hand with the repairs, check out my list of trusted vendor partners.
What Is There to Hate? Make a List!
Lots of homes come with quirky features that can mess with their true market value. Do you happen to back onto a bustling commercial zone? Or maybe your backyard is a highway hotspot? Got a minuscule lot or a plot that’s shaped like a Tetris piece? And let’s not forget about those power lines or transformers hanging around your yard.
These little quirks can seriously impact how much your home is worth on the resale market. Make sure to highlight them when you’re making your case to the appraisal district during your protest.
Special Notes for New Homeowners or Recently Refinanced
If you’ve bought or refinanced your home within the six months leading up to January 1, you’ve got some valuable documents that can help in your protest.
If it’s a recent purchase, you should have a Settlement Statement from your closing. Usually spanning 3-5 pages, it details all the ins and outs of the transaction, from buyer and seller info to lender and title company specifics. Most of the time, the appraisal district will accept this as proof of your home’s value and adjust your assessment accordingly.
Now, if you’ve recently refinanced, you likely have a comprehensive long-form appraisal on hand. These professional assessments delve much deeper than the county’s quick desktop appraisals and should serve as solid evidence of your home’s value when arguing your case.
The End (finally!)
In closing, let me make it crystal clear: I’m not a professional appraiser, nor am I a tax expert of any kind! The wisdom I’m sharing comes from years of duking it out with my own tax assessments and navigating the real estate world as a professional real estate agent.
It’s wise for everyone to give their tax appraisals a good once-over every year and raise a ruckus if something smells fishy. Remember, what you’re valued at this year sets the stage for next year’s shenanigans. Trust me, ignoring those assessments can lead to some serious sticker shock down the road.
If you reached the very end of this (insert applause) and have decided to leave it in the hands of a professional, it’s not a bad idea at all! #worksmarternotharder I personally now use Quatro Tax to protest on my behalf. I have also heard great things about O’Connor Tax Reduction Experts.
Got more burning questions? Shoot ‘em my way!