Fort Bend County FBCAD Formal Property Tax Protest Hearing Tips and Questions - 2017 (Spring: for sale)

[kcobra]

As usual I protested my 2017 property taxes online. Original market value was $245,000. Their reconsidered market value was $242,670. Basically an insult. I declined and now have a formal hearing. Their own comparables report they generated has the market value comparables from $201k - $218k. The sale prices in their comparables was $206k - $225k. Each comparable is as large or larger than mine. From looking at the comparable PDF I see the following on mine:

• Mine has a 3 car garage. They are adding ~$10k for the 3rd bay compared to the comparables that have a 2 car garage. IMO no way is the third bay worth that, but obviously my opinion is not the same as FBCAD.
• My land value is a $15k - $20k above the comparables. Lot size for mine and the comparables is pretty much the same. Only thing I can think of is my property is at the front of the subdivision surounded by large two story houses around 3,000 SQFT or larger. My house is a 2,000 SQFT one story.

When I have my formal hearing how should I approach this? Should I be asking them why my house is so far off from the comparables? Any tips or suggestions?

One big thing is I have had my house listed for sale in the MLS for ~3 weeks at $220k. I have not got so much as a sniff other than one low ball offer of $200k. Will the review board take this into consideration? FBCAD may even be affecting me selling my house. If I was an asstute buyer, I'd be looking at the appraised value for a house. If I saw one appraised ~$30k above market value I'd consider looking elsewhere.

Few other technical questions based on reviewing the formal comparables PDF:

• What is "Market Indicated Price"?
• What is "Adjusted Sale Price"?
• Anything else to specifically review/understand the the formal comparables sheet they provided?

Thanks.

[SpringBrancher]

I know hcad hearings are basically a kangaroo court. Fort bend might be the same. I would think though they would take into account what it's actually listed for unless they are totally out of control. Sorry I don't have any actual help for you but what you're saying sounds reasonable except the extra bay not being worth 10k. I'd drop that argument and talk most about what you listed it for - seems like if it was a $250,000 house that you'd list it for that.

[PedroMartinez]

Originally Posted by SpringBrancher

I know hcad hearings are basically a kangaroo court.

No doubt.

If it's anything like HCAD, you're better off hiring a professional (that used to work there and has the connections). I hired the guy who used to run the tax office, so he gets what he asks for, unlike lowly home owners.

[kcobra]

Update. Had my FBCAD ARB hearing this morning. I focused on the $245k market value being to high compared to what houses of my type are listed for in the subdivision. I showed my house being listed for a month at first $220k and now $215k. Also showed pretty much exact same house one street over listed for $225k while FBCAD had it evaluated at $244k. Also showed the FBCAD provided comparables from Jan 1st had an average sale price of $211k. I said my market value should be $210k.

Appraisal district rep then presents his case. Started throwing out classification such as the FBCAD comparables provided were one step below my classification. Obscure terms like G1 and G1-1, etc. Then claimed my house being on the market for only a month was much to short of a time to use that as a basis for what the true market value is. Also claimed for sale listing numbers in the middle of the summer are not representative of the market on Jan 1st! I agree but certainly not in the direction he was implying.

In the end the district rep suggested a market value of $233k. Of course "conveniently" that value is a little over the $230k value I would be taxed on for 2017 because of the 10% home owners appreciation rule. So no actual change in the amount of taxes the county would get from me.

ARB closes the presentations and votes unanimously for the $233k number. So basically smile at you while ignoring the evidence presented by the home owner. Pretty much what I expected. I guess it will help out the new owner of the property by $300 or so when they have to pay the 2017 taxes.

Side question: Anyone know what equity vs market value is in FBCAD terms? After the deliberation the ARB said their recommendation was an equity value of $244k with a market value of $233k.

[Aliana926]

Thanks for the update...my hearing is scheduled in Sept and I'm not expecting a positive outcome.

[LonghornHotspur]

Originally Posted by kcobra

Update. Had my FBCAD ARB hearing this morning. I focused on the $245k market value being to high compared to what houses of my type are listed for in the subdivision. I showed my house being listed for a month at first $220k and now $215k. Also showed pretty much exact same house one street over listed for $225k while FBCAD had it evaluated at $244k. Also showed the FBCAD provided comparables from Jan 1st had an average sale price of $211k. I said my market value should be $210k.

Appraisal district rep then presents his case. Started throwing out classification such as the FBCAD comparables provided were one step below my classification. Obscure terms like G1 and G1-1, etc. Then claimed my house being on the market for only a month was much to short of a time to use that as a basis for what the true market value is. Also claimed for sale listing numbers in the middle of the summer are not representative of the market on Jan 1st! I agree but certainly not in the direction he was implying.

In the end the district rep suggested a market value of $233k. Of course "conveniently" that value is a little over the $230k value I would be taxed on for 2017 because of the 10% home owners appreciation rule. So no actual change in the amount of taxes the county would get from me.

ARB closes the presentations and votes unanimously for the $233k number. So basically smile at you while ignoring the evidence presented by the home owner. Pretty much what I expected. I guess it will help out the new owner of the property by $300 or so when they have to pay the 2017 taxes.

Side question: Anyone know what equity vs market value is in FBCAD terms? After the deliberation the ARB said their recommendation was an equity value of $244k with a market value of $233k.

Two different valuation methodologies. Market value is based on SOLD comparables, while equity value is based on a comparison of FBCAD's other valuations of comparables. By law, your taxable value is the lower of the two.

I had a similar experience with a set of totally innumerate geriatrics at my ARB hearing. I've concluded it's a sham, a waste of time, and completely biased against individual homeowners. YMMV