Sticker Shock in Richardson

I officially live in a “HOT” place. No, I am not talking about August in North Texas. I am taking about the real estate in my neighborhood.

Just like many of you, I got sticker shock when I received my 2016 Notice of Appraised Value from the Dallas County Appraisal District. Since 2013 real estate in North Texas has been rising and I have experienced it. How much is my increase?

2013 Base year

2014 +3.27% Increase

2015 15.35% Increase (capped of course at “only” 10% for tax purposes)

2016 9.22% Increase

3-year increase = 27.84% increase in three years. OUCH

Do I like how it changes my net worth? Of course and you would too. Yet as one of my clients and friends who lives in the neighborhood called and told me, his taxes had increase to nearly $10,000 for 2016. We all enjoy the increase but are a bit shaken by the tax hit.

The good news is because I have annually reviewed and protested when the details were in my favor; I am still nearly the bottom of the values in my two block street.

How will my review of my valuation work out this year?

I did my first look on Tuesday night at my valuation compared to my neighbors. That is step one in getting your game plan together for valuation. As much as the appraisers like to think that they know your neighborhood, no one should know it like you do. Unless all you ever do is drive in your garage through the alley and have no clue about what is going on in your neighborhood.

I know which houses have improvements; new kitchens, remodeled bathrooms and the like. Looking over the neighbor’s valuations, what did I find?

Two observations to this year’s appraisals. Land values have increased now a static amount of $55,000 to $80,000 in two years. A 45% increase in two years. Land value is hard to argue unless your neighbors is lower and then that is an easier argument.

Secondly,one of the houses close to mine was remodeled in 2013 with a $100,000 makeover and their valuation is $10,280 less than my appraised value. Voila! There is my opportunity to get my valuation reduced by $10,000 or more.

My next steps? Take pictures of my kitchen and bathrooms – they need remodeling!

Where are Chip and Joanna Gaines when I need them?

I will submit my protest with my pictures next week and keep you informed as we progress.
The one takeaway for everyone;

If you do nothing that will be your result.

Have a great weekend,

Michael

PS I will be walking Hayley down the aisle at about 6:30 on Saturday night – a simple prayer for composure or a toast at about that time will be gladly received

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Michael Tannery CPA CDFA™ AIF^®● CEO
Registered Principal

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