The Notice of Appraised Value

Before starting the appeal process, you need to know if you should appeal or not. In late March or early April, you will receive a notice of appraised value from your CAD. It should display basic information about your property, including ownership, exemptions applied, and the value associated with your property. Many notices come with three values, which can be confusing. Market value is what your property would sell for on the open market on January 1 of the tax year. Appraised value is the market figure that has been constrained by laws and regulations, including appraisal caps. Taxable value is the appraised estimate with exemptions subtracted from it. This is the value that tax rates are applied to. Your notice will also have the deadline to file an appeal on it, so be sure to keep this document handy.

Issues That Warrant an Appeal

By studying your assessment, you can find any errors that your CAD has made. First, inspect all of the basic information. If you spot an error in exemptions, the size or classification of your property, improvements that do not exist, or if the owner’s name is incorrect, then these are all issues that need to be appealed. While they may seem basic, all of these problems can cost you a lot of money if they are not addressed. Ownership and exemption issues will typically cost you the most. These problems are easy to prove and can be appealed without much effort.

The values are where most people focus their attention, and these can be trickier to understand and protest. Your appraisal notice should list the values from the current year and the previous one. Compare these values to see if there was a large spike. Many cities and counties in Texas are seeing skyrocketing values, so it is not unusual to see an increase. However, if the increase is excessive or if you feel that it does not reflect the realities of your property, then you have grounds for an appeal.

Value and Unequal Appraisal

When it comes to protesting on value, one of the top reasons is unequal appraisal. Texans are protected by law when it comes to how appraisals are applied to homes and businesses. Properties that are in the same location and have similar attributes, like age and size, should be appraised identically, or at least close to it. If two properties that are alike in all ways are assessed differently, then that is unequal appraisal. This is one of the most commonly appealed issues and often yields the best results.

Unequal appraisal is proven by comparing your property to similar ones in your area. When put side-by-side, the disparity can be evident, which should lead to a reduction. This is usually accomplished by gathering property records from the surrounding area, using data from properties that are the same age and size. Since your CAD often does not use the condition of a home or business as part of their calculation, showing that you have damage, deferred maintenance, or other issues that demonstrate you are being overassessed compared to your neighbors is also a strong argument to make.

Evidence Needed

While simple appraisal errors like incorrect ownership are easily corrected, disputes based on value can be more difficult. In addition to proving unequal appraisal, excessive or inaccurate valuation can be demonstrated as well. This is achieved by comparing your market value to property sales over the past few years. This can show that the CAD is overestimating the value of your home. Regardless of what grounds you use, you will always want photographs to demonstrate conditions, documents like repair estimates to show deferred maintenance or damage, and possibly an independent appraisal to give your protest even more credibility.

The Appeal Ladder

There are three types of appeals, running in a prescribed order. First are informal appeals, which are meetings between you and the CAD. These can easily fix clerical or other errors and can lead to significant reductions if you have evidence. If that fails or gives a settlement lower than you expected, you can next try formal hearings with the appraisal review board (ARB). This sees you and the CAD present your evidence in front of a three-person panel that decides impartially. If this fails, then litigation is a possibility. Each step leads to the other, with each higher rank requiring more time, evidence, and effort.

How to File an Appeal in Texas

Filing an appeal against your values is a straightforward process…

• Review your notice of appraisal for errors, including basic mistakes or unrealistic valuations.
• File a protest electronically with your CAD. Many major CADs have online portals to handle appeals. You can also file by going to your CAD directly or by mailing a letter using Form 50-132.
• Gather evidence that backs up your case. This includes photographs, estimates, documentation of deferred maintenance, property sales studies, and comparisons of your property to similar ones in your area.
• Attend an informal hearing with your CAD, in hopes of getting a reduction by using your gathered evidence.
• Escalate to a formal hearing with the ARB if you do not get an adequate settlement from the informal hearing.
• Get legal representation and pursue litigation against your CAD. This includes binding arbitration and judicial appeals.

O’Connor is Here to Help

While it is the right of every Texan to challenge their values and taxes, it can be a complex affair. While simple errors can be proven by anyone, landing a reduction due to overassessment or unequal appraisal takes much more evidence. This is even more true when it comes to taking things to the ARB. If this seems overwhelming, then we at O’Connor are here to help. With over 50 years of experience in Texas property tax appeals, we know what it takes to win in the Lone Star State. We have branch offices all over Texas, allowing us to utilize local experts, and being one of the largest firms in the nation gives us a vast support network to draw upon, along with our patented databases.

When you join O’Connor, you will receive personal service that no other firm offers. You will be given a client success consultant who will guide you through the whole process. This person will act as your point of contact, meaning you always have a name and face that you can reach out to, instead of an automated system. Many of our clients can also have a personalized concierge team member visit to their home or business. We will help gather evidence for you, analyze your appraisal for errors, represent you in all hearings, and even coordinate a lawsuit on your behalf. There are no upfront costs for these services or hidden fees to surprise you. Instead, you are only charged a contingency fee from your tax savings if we are able to lower your taxes.