Value of home based on Fort Bend Property Tax assessed values, should they be fairly close?

Asked by Anonymousone, 77459 Sat Oct 15, 2011

Does buying a home way less than property tax assessed mean greater likelihood of higher equity in the future? How about if the home is way above assessed value? Should I be concerned that we won't be able to resell the home if the assessed property tax value is way below future asking price?

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Bruce Lynn’s answer
Bruce Lynn, Agent, Coppell, TX
Mon Oct 17, 2011
You can see my diatribe on tax values here:…

Buying below tax value is no indication of a deal....nor is buying above tax value means you are getting a raw deal. Either way the retail purchase price could be too high or too low. You need a realtor to help you look at the market. Tax values are only an indicator of what tax you might pay over the next year. I would almost never use tax values as an indicator as to what purchase or sales price should or should not be.
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Carol Zeitz, Agent, Missouri City, TX
Sat Oct 15, 2011
Section 1.04 of the Texas Property Code defines market value as follows: 'the price in which a property would transfer for cash or its equivalent under prevailing market conditions if: (A) exposed for sale in the open market with a reasonable time for the seller to find a purchaser: (B) both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and the enforceable restrictions on its use; and (C) both the seller and the purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other".

However, all three of the market conditions noted above can not really be determined without a home truly being on the market for sale, so the tax authorities make their best estimates. In addition, homeowners are allowed to protest and the goal for a homeowner is usually to have their home assessed as low as they possibly can, so that they pay less taxes. If the tax value of a home is higher than the market value (purchase price) of a home, it most likely means the prior owners chose not to exercise their right to protest. It is not an indicator of actual current or future market value.

Market value can only be determined by the market itself. Your best source for determining the market value of your current home, or whether the asking price of a home on the market is reasonable, etc. is to work with a Realtor. Our job is to help you analyze the market, the home in question, and provide education about the purchase or sale you are considering. The web link below offers a free market snapshot of any Houston neighborhood or even specifically around a particular address.
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