So it’s April and you receive a letter in the mail. It’s a notice from the County Office informing you that the value of your home is higher than it was last year. Surely that can’t be right, you think… So now what?
Well, lucky for you, homeowners in Texas have the right to protest their property tax appraisals. The notice you receive from the county contains information on how you can protest a property tax change. It includes details on scheduling an informal conference with the appraisal district prior to your formal Appraisal Review Board (ARB) hearing.
Although protesting may seem like a lengthy process, we’re here to break it down for you so that you don’t end up overpaying year after year.
What are ARB Hearings?
Owning a home is a matter of pride; however, the associated costs can often be a hassle. The amount you pay as property tax is determined by the appraised value of your home. This value is based largely on the value of the homes around you. If you disagree with the newly appraised value of your home, you can appeal to the county appraisal district. You can also ask the appraisal district authorities to explain the change in your home’s appraisal.
The ARB is a group of citizens authorized to resolve disputes between homeowners and the appraisal district. If a homeowner feels that the appraised value of their home is incorrect, they can appeal to the ARB and the chief appraiser, who will then hear their case and give a binding decision.
The ARB Hearing Process
Here’s how you can go about the appeal process once you’ve received a notice that your home’s appraised value has changed.
i) Register your written protest
You can file a protest via officially available forms or a written notice with details of you and your property. Generally, ARB hearings begin in May and end around mid-July. The county appraisal district is required to approve the county appraisal records before July 20, so make sure you file your protest well in advance.
In your notice of protest, ensure that you mark off ‘incorrect appraised market value’ and ‘value is unequal compared to other properties’.
ii) The ARB will inform you of your protest hearing 15 days before the date of the hearing
iii) You are entitled to receive copies of Property Taxpayer Remedies and the ARB hearing procedures
Texas Property Tax laws ensure that homeowners can request all the data, formulae, and information that the district appraiser will discuss at the protest hearing. You also have the right to copy and inspect documentation and information the appraisal district will use at the hearing from the ARB. In fact, any evidence you request but are not provided may not be used as evidence in the protest hearing.
iv) Before you appear before the ARB, you will need to create an evidence report that backs your claims of property overestimation
Appraisals are done for a whole area and not necessarily for each property. Hence, your evidence report builds your case that the assumptions used may not be accurate for your individual home.
Padmini, a homemaker in Texas, sought Bezit’s help for her protest hearing. Our service generated a report that outlined an estimate of the projected money she could save by appealing, built her case by offering relevant data with regards to property trends and appraisal rates, and offered strong evidence for her to back her claim. She saved $29,177 thanks to Bezit’s expert guidance.
Putting Together Your Evidence Report
The whole process of appealing may sound a little daunting, but we assure you, it’s easier than it looks. Here’s what you need to collect and from where:
i) Verify that the appraisal reflects the correct property description and measurements
Take comprehensive photos of the property and consider doing a survey of your own measurements to support your argument. You can also get the appraisal card on your home from the appraisal district office and check if it lists the right number of bedrooms, bathrooms, and garages.
Many appraisal districts may no longer keep hard copies of these cards. However, you can download them from the appraisal district’s website. If you are unable to do this, you can also request a digital copy.
ii) Collect blueprints, deed records, and statements from builders
Closing documents showing the sale price and date of your home, if it was purchased in the last year.
iii) Details of sales comps i.e the value of comparable homes in the area
You can reach out to real estate agents or your neighbors to gather evidence of recent sales of similar properties around yours. We recommend using recent data to build your report; for example, use recent sales prices (only up to 2 years old) of at least 6 comparable properties to estimate the value of your home.
For comparable sales, check for the sales date, street address, square footage, lot size, items that add value to the home, zoning, and the year the home was built.
iv) Ask the county appraisal district about the details of the sales that it used for comparison
Visit the county appraisal district office and ask that they show you all the data they used in determining the value of your home and any other proof they will show at the protest hearing. Some districts may ask you to send in a request in writing. Others also make evidence available through their websites, so a quick Google search should help.
v) Photos of any damage to the property
If there is deferred maintenance, take high-resolution pictures of these areas. Anything from a broken fence to cracks in your foundation can serve as proof of this. You can also bring in a video, but make sure you bring a laptop to present it on.
vi) Estimates of repairs needed from a licensed contractor
Perhaps you’ve been putting off repairs because it would require a whole renovation. Get a professional to estimate exactly how much it would cost to do the job and present this as part of your evidence that your house is not in perfect shape.
vii) Consider a professional appraisal if needed
A professional appraisal is only recommended if the reduction in your taxes will be considerable, as such an appraisal can be expensive, often starting at $500.
viii) Evidence reducing the desirability of your home
If your home is located on a busy street or it is too close to a highway, chances are high that the resale value of your home will be low. Highlight any such details affecting the value of your home, as this data can show that the value of your home is being overestimated.
If you’re not able or willing to represent yourself, authorize someone like an agent to attend the hearing on your behalf. To do this, you must use an "Appointment of Agent" form, which is available at the county appraisal district or the Comptroller's office. No form is needed if the person is your attorney, mortgage lender, or employee. However, outsourcing can be expensive, especially since agents can charge up to 40% commission. At Bezit, we have a flat fee that ensures you get the job done faster at a more reasonable cost.
You also have the option of sending in a sworn affidavit with evidence to support your protest. This affidavit is a notarized statement of the evidence supporting your case.
Common Mistakes To Avoid
Don’t add things that happened after the appraisal date:
The value of your home is calculated as of Jan 1st. If your home sustained damage after that date, you cannot include it as part of your evidence.
Not looking at your neighborhood as a whole:
Look at all possible details of your immediate area that could make your property less valuable, such as railroad tracks too close to your home, which could help determine the right appraisal value of your home.
Now, You’re Ready!
The appraisers are not your enemy, so try not to adopt an antagonist attitude before you go in for your protest hearing. They are simply doing their job and the ARB is an opportunity for you to present your point of view to them. Neither the appraiser nor the ARB sets the taxes, so don’t attempt to fight them on the rate itself. Instead, focus on the value of your home.
With the right evidence and good communication of your case, your perspective will be acknowledged by the ARB members and the appraiser. Now that you’ve read all the necessary information, you are well-equipped to take matters into your own hands and complete the process.
Also, if you found the process useful or enjoyable in any way, you can actually apply to be an ARB member if you have lived in your county for at least two years.