Congratulations on finding a $275K home in a $700K neighborhood. The county tax assessor will assess the property on what they think it is worth acording to the comps. If you want to have it lowered to the amount you paid for it, you will have to prove to them that it is only worth what you paid for it. Take photos and your HUD statement from your closing and contest the amount. They do not have to lower the value to what you paid for it, but they will cerntaly lower it considerably. If you are still not happy with the value, you can request a hearing to review your case.
Kristee Leonard, REALTORÂ®
Broker, GRI, SFR
In the end the market will recover and the homes value will increase so make sure you can afford the taxes at what you currently think the property is valued at.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
email@example.com | http://www.AustinListed.com
I'd be real careful on this one. The appraisal district may or may not adjust the price in the end. The tax assessment for 2012 will be at whatever the appraisal district has as of January 1, 2013. Being that the "owner of record" is not you as of the 1st of the year you will likely NOT be able to protest 2013's tax assessment. It is POSSIBLE but NOT likely especially if you are not "closed" prior to the protest deadlines. Having said that in 2014 you MAY be able to protest your taxes using your closing statement. I can tell you for CERTAIN that I have seen the appraisal district NOT adjust to the "foreclosure price" because of showing your HUD1.
Best case is that you might get the taxes lowered for 1 year.
Previous answers here somewhat cover both sides to your question.
Yes, taxes are based on the appraisal value, which may be adjusted each year in April with an appeal time allowed which ends in May for Owners to contest the appraisal value.
Using your HUD-1 and making an appeal right after closing often will be considered by the appraisal district. Comparables of foreclosed properties in the area will determine where the price you paid stands related to other sales. Sales of not foreclosed properties gives what you would see in future appraisal adjustments.
That is a big price difference and I would think you are planning to buy and hold for some time past when the foreclosures clear out, otherwise, the prices in the subdivision will be depressed based upon the foreclosure valuse holding buy and flip values down. I would try to determine what the cause of the foreclures are with that big of price difference. Is it the location or the qualitity of craftsmanship of the homes, the school district, or other reasons over which you have no control and your property is subjected to it
Long story short, if you are paying 275k regardless of the fact that is a foreclosure, in a neighborhood of 700k homes, the house you are looking at is NOT currently worth 700K. The taxing authority will adjust accordingly BUT, they will not come to your door offering you the adjustment. You will have to request it after you have your HUD in hand along with all of the other mitigating circumstances affecting the house.
Best of luck, and Merry Christmas!
If you're not yet working with a Realtor, feel free to call on me and I'll be happy to assist you not only with the purchase, but with future tax appraisal issues as well. I do not charge anything for buyer representation, and assist my clients even after the closing of the sale with any issues related to their tax assessment. Please contact me if I may be of assistance!
Joe Jarusinsky, Realtor, Keller Williams Realty, 512-261-4415
Good question! The quick answer is yes, you would pay taxes on the tax appraised value. You can look up tax appraisals by address here http://www.traviscad.org/
Please let me know if you would like additional information about foreclosures, I have 8 years experience buying and selling foreclosed homes in and around Austin.
REALTORÂ® GRI, CNE
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Ultima Real Estate
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