Remember when I was talking about protesting the property taxes for the flip? We were victorious!!
That’s right, we got the overall value of the house reduced by just over 30%, which will give us a corresponding 30% discount in property taxes. Woohoo!!
Here’s a little background on how it all went down.
In Dallas County (and maybe in your county, too), property owners are allowed to protest the appraised value of their homes within a certain time frame after the new values come out for the year. We were able to sneak in our protest for the flip just under the wire. A hearing date was set (June 24th), and on that date we would present evidence to a panel of 3 members of the Appraisal Review Board as to why we thought our house was worth less than they said it was – basically, tell them all of the stuff that they don’t know about our house. However, before June 24th we could come in to meet with an adjuster for an “informal” meeting and present the same evidence. We opted to go this route since we could still have the formal hearing if the informal meeting didn’t turn out how we thought it should.
In a nutshell, we weren’t as prepared for the informal meeting as we should have been. We brought in our closing statement and figured that should do the trick. Nope! They thought that it was an “atypical sale” based on other sales in the neighborhood – but of course, these people had never seen the house and had no idea the condition that it was in, they were just looking at statistical data. So, our adjuster offered to bring the appraised value down a decent amount, but not to where we thought it should be. We said no thanks. He was lovely and said that we could come back with more evidence before our hearing date, which was exactly what we did.
We came back with more evidence than you could shake a stick at, all arranged in a neat little binder with flagged pages and highlighted areas for easy reference. In addition to the closing statement, we had the inspection report indicating that we needed a new electrical panel and HVAC; bids for a new roof, foundation work, and new windows; and pictures of everything, from the foundation work to the roof being replaced.
Based on all of this evidence, we were able to get the condition of the house reduced from average to poor (the lowest condition level). Of course, once the house is all spruced and renovated it will no longer be in poor condition, but that will be reflected when the taxes come out for the next year. In the meantime, we will be taxed based on the actual value of the home!
Have you ever protested your property taxes?