You may have recently received a Notice of Appraised Value from the tax assessor’s office recently. This notice will contain 3 important values:
- Market Value – This is the value based on what your property would sell for as of January 1st
- Assessed Value – This is the reduced value of your property based on limitations provided by having a homestead exemption
- Taxable Value – This is the assessed value minus any exemption amounts. It is the value used to calculate your property taxes for each taxing unit
If you have not received a Notice of Appraised Value, you can view your property’s values using the Travis County Appraisal District’s Property Search feature.
The market value for your property is rarely the same as the appraised tax value, and inequality between similar properties can serve as the basis for a tax reduction. We thought this email would be helpful in understanding the difference, and in making an informed decision whether or not to file a protest.
Why is the assessed value different than the market value?
The tax-assessed value is what the county believes your home is worth. The county attempts to set their values at market value. However they do not evaluate comparables, nor do they perform an individual market analysis on every home. The county simply values your home according to the area, not the house. This means that the value may be too high or too low, depending on the size, location, amenitites and condition of your specific property.
With that in mind, it’s important to know your options as a property owner to ensure that you save as much money as possible on your taxes. If you believe the market value of your property is incorrect, you have the right to protest that value.
The process for protesting can be long and complicated. For those reasons, some choose to hire a professional with expert knowledge of applicable tax law and procedures. Luckily, there are several companies that specialize in this type of tax appeal, and starting the appeal process with them can take only minutes. Additionally, these companies will also prepare a Year End Property Tax Summary and deliver it to you.
There is typically no up-front cost to you for working with one of these companies. Most property tax counselors only charge a fee if your appeal is successful, taking a portion of what you saved.
Of course, you can always choose to protest the property value on your own. The Travis County Appraisal District has some frequently asked questions that can help get you started here.
Here are a few companies that may be able to help you in your protesting efforts:
Our agents are always available to help with questions on taxes or any other home related items. We would also be happy to assist your friends and family with any of their purchasing and selling needs. Please don’t hesitate to pass this information along to anyone you think needs Real Estate assistance!