January 25, 2022 4:54 PM
How Comparable Properties Can Help Lower Your Texas Property Taxes
Are you looking for ways to lower your property taxes in the Lone Star State? You’re not alone. As a Texas homeowner, you are probably dealing with rising tax assessments and high property bills, which can make it challenging to manage your finances each year.
Fortunately, there is a way to get some relief: filing a property tax protest. A property tax protest is the process by which you can contest the assessed value of your home and, if successful, lower your property taxes.
Comparing your home’s assessed value to that of similar properties in the same area, called “comparable properties,” can be an effective way to support your property tax protest. By researching and presenting data on comparable properties with lower appraisal values, you can challenge the assessed value of your house or other real property.
In this blog, we’ll discuss some ways that comparable properties can help lower your Texas property taxes.
In Texas, county appraisal districts are responsible for setting the assessed value of real estate for property tax purposes. The assessors determine the value of a property based on its market value, which is the estimated price at which a property would sell in an open and competitive market under normal conditions.
Comparable properties, also known as “comps,” play a crucial role in assessment because they provide a basis for comparison to determine the fair market value of a property. When setting the market value of a property, the appraisal district should look at the sale prices of comparable properties in the same or similar neighborhoods. However, appraisal districts might fail to consider the unique characteristics of a specific property, which can cause them to rely on inappropriate comps.
By researching and presenting data on similar properties that have sold recently in the same area, property owners can establish a more accurate market value for their property and potentially lower their assessed value. Well-matched comps should have similar characteristics and features to the property being appraised, such as the size of the property, number of bedrooms and bathrooms, age, condition, and location.
One of the most common grounds for property tax protests is that the appraisal value is unequal compared with other properties. The Texas constitution requires taxation to be “equal and uniform,” so you can challenge the assessed value of your home as being higher than the assessed value of comparable properties.
To prove unequal appraisal, a property owner must provide evidence that their property has been assessed at a higher value than similar properties in the same area. This evidence may include data on recent sales of comparable properties, information on the property’s condition, or other factors that may affect the property’s value.
By identifying and presenting data on similar properties with lower assessed values, property owners can make a case for unequal appraisal and potentially lower their property tax bill.
Using comparable properties can be tricky, and for a property owner who does not deal with this type of information daily, it can be challenging to determine the best way to present your case effectively. Fortunately, Texas homeowners are allowed to partner with a consultant to help them navigate the property tax protest system.
At Watchtower Protest, we will handle the entire protest process for you, from identifying comps to gathering evidence. We will even argue your case at a formal hearing in front of your county’s Appraisal Review Board.
And the best part? You don’t have to pay a dime unless we win your property tax protest and successfully reduce your property taxes. With zero risk involved, why not sign up for our services today?
Property tax in Montgomery County - a property tax consultant can help you manage your tax obligations, exemptions, deductions, and how to challenge your assessment.