Home Values & Property Tax Tips

Over the last two years, Houstonians have experienced significant growth in their home values with average prices up 20-30% in some areas. While this is good news for many, it does not come without its downside. The associated growth in property tax assessments has caused some property owners to consider selling their homes, downsizing, or relocating to areas with lower property tax rates.

Towards the end of 2015, we’ve seen the first indicators that the explosive growth may be coming to an end. Last month was the biggest drop in home sales since 2011, with home sales down 10%. However, despite the drop in sales, prices have remained strong due to relatively low inventory.  Many people will be waiting in anticipation to see how the latest market activity will impact the 2016 property tax assessments this coming April.

As we near the January 1st property tax valuation date, we have 3 tips for homeowners seeking to reduce property taxes in the upcoming year.

1. Take Photos near the January 1 valuation date. If there are major problems with your home that aren’t accounted for in the tax roll, take photos to document these issues around the January 1 valuation date. Photos can help prove and support your argument for a lower condition rating at your hearing with the Appraisal District.
2. Keep Receipts for repairs completed after the valuation date.  Every year properties are assessed as of January 1st, therefore, any enhancements, repairs, or additions made to your property after this date are not taxable until the following year.  Receipts for items such as a new air conditioner, new roof, or foundation repairs which are dated after January 1st are useful because they prove the property was in need of repairs at the date of valuation.
3. Mark your Calendar.  Countless property owners come to us after the protest deadline and we can’t help them because it’s too late.  Be sure you don’t miss the opportunity to challenge your assessment by marking the May 31 property tax protest deadline on your Calendar.