PROPERTY TAX SEMINAR 2014 - Bentwater Civic Association

BCA
PROPERTY TAX SEMINAR
2014
May 6, 2014
BCA Property Tax Seminar
What it’s About
 Bentwater Appraisals and Resales
 How to access and analyze your individual Appraisal
 The appraisal process used by MCAD
What it’s not About
Changing/fighting the MCAD appraisal concept
Lake Conroe water level
 Personal “War Stories” dealing with MCAD
Personal Observations
Bentwater Real Estate
 “Inactive” Market due to long sales periods, small samples
 Never enough resales to set Fair Market Value
 There are clearly more than 3 Neighborhoods, but 61?
MCAD Appraisals
 Neighborhood, Neighborhood, Neighborhood
 Standard appraisal process and real estate practices used
 Too few resales lead to widely variable appraisals
 Going to fewer Neighborhoods would make folks happy?
 You won’t win trying to change the process
 You can win based on “unequal appraisal” and better “comps”
Bentwater Real Estate Activity
Homes Sold ( Resales )*
Interior
Golf Course
Waterfront
2008
59
33
18
110
Value of Homes Sold ($/SqFt)*
Interior
Golf Course
Waterfront
2008
95
100
194
*Used Homes
2009
60
26
8
94
2009
88
97
200
2010 2011 2012
46
31
53
21
19
30
13
11
18
80
61 101
2013
71
22
18
111
2010 2011 2012
91
86
90
104
106 106
200
200 205
2013
92
126
223
My Property Tax
Appraisal Value
TAX = ( Assessed Value ) X ( TAX RATE )
MCAD
Government
TEXAS PROPERTY TAX LAW
MCAD is required by law
“The market value of property shall be determined by the
application of generally accepted appraisal methods…. The
mass appraisal stds must comply with the Uniform Stds of
Professional Appraisal Practice”
“the owner may inspect and may obtain a copy of the data,
schedules, formulas and all other information the chief
appraiser plans to use…”
TEXAS PROPERTY TAX LAW
MCAD is required by law
If market data comparison method of appraisal is used, “the
chief appraiser shall use comparable sales data and shall
adjust the comparable sales to the subject property”
“In determining market value…the chief appraiser shall analyze
the effect on that value, and exclude from that value the value
of intangible personal property”
Appraisal values can be protested on “clerical errors” and on
the ground of “unequal appraisal”
MCAD Appraisal Process
COMPS
Your Home
MCAD Model
Your Appraisal
MCAD Process in Bentwater
Bentwater viewed as multiple Markets
- Interior, Golf Course and Waterfront Lots
- There are 61 Neighborhoods or Markets
MCAD, Texas Law, and Standard Real Estate Practices
- Requires numerous, recent, and comparable
resales to establish fair market value - ISSUE
- Small markets (neighborhoods) promote widely
variable appraisal values across Bentwater
Two Questions to Answer
Is my Appraisal Right?
Is my Appraisal Fair?
Is My Appraisal Right?
Does MCAD have the correct data for my home?
My House
MCAD Data
Is My MCAD Data Correct?
• Square Footage of all Improvements
• Right number of porches, bathrooms, etc
• Exterior/Interior Building Construction
• Fireplaces, swimming pools
• Docks
• Land Area
WHERE IS MY APPRAISAL?
Go to the Montgomery County Appraisal District (MCAD)
website at:
www.mcad-tx.org
RECORDS
Search by Address
Additional Data
Neighborhood 74065.1
Land Appraisal Value
Improvement Appraisal Value
Assessed Value
Homestead Adjustment
Improvement Data
Open up the Main Area
Class
Is My MCAD Data Correct?
• Square Footage of all Improvements
• Right number of porches, bathrooms, etc
• Exterior/Interior Building Construction
• Fireplaces, swimming pools
• Docks
• Land Area
Is My Appraisal Fair?
What is a Fair Appraisal
Remember
MCAD views you as being in one of 61 Neighborhoods
Do You Stand Out versus Your Neighbors
- Land Value
- Appraisal $/SqFt (one versus two story)
- Class
How Do You Compare to Neighborhood Resales
- Is there an adequate number of Resales
- Are the Resales comparable to your home
( size, age, Class)
- Are the Resales recent
Is there Unequal Appraisal
- Compare your appraisal ratio to that of comps
- Compare your appraisal $/sqft to several neighbors’
What is Unequal Appraisal
Sec. 41.43: “the appraisal ratio of the property is equal to or less
than the median level of appraisal of a reasonable and
representative sample of other properties in the district”
Appraisal Ratio = (Comp Appraisal)/(Comp Sales Price)
Appraisal Ratio = (Your $/sqft) versus (Neighbors’ $/sqft)
Appraisal Data on BCA Website
www.bentwatercivic.com
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Board/Committees
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Favorites
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Contact Us
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Property Tax Program
Updates
My Appraisal
Neighborhoods
Protest Form
Tax Seminar
MCAD Website
Property taxes are determined by calculating ( Appraisal Value X tax rate ). The Property Tax Program is designed to help homeowners
understand the basis of their property tax Appraisal Value as determined by the Montgomery County Appraisal District ( MCAD ), and with
that information be able to develop a logical basis to protest their appraisal. The program attempts to mimic the appraisal process used by
MCAD, where individual property values are determined by comparison against comparable homes ( “comps”) that have recently sold in
the neighborhood. The key to a fair appraisal is using home sales that are recent, that are in your neighborhood, and that are generally
comparable to your home.
The MCAD has divided Bentwater into 56 separate neighborhoods for the purpose of determining what home sales are used to calculate
your Appraisal Value. It is therefore critical to have a good understanding of what is going on in your neighborhood – what are the
appraisal values for you and your neighbors, and most importantly, what homes have recently sold in your neighborhood. Armed with
this information you can determine the fairness of your Appraisal Value and ultimately decide if you have a sound basis to go forward with
a protest. Using the Neighborhoods data developed for your neighborhood, My Appraisal provides a step-by-step process that you can
use to evaluate your MCAD Appraisal Value.
The Program had many success stories in 2010 as discussed in Updates, but it was limited to the 16 neighborhoods where volunteers
developed the Neighborhoods data. If we don’t have the data for your neighborhood, it’s because no one volunteered to develop it. You
can help advance the impact of this effort by volunteering to develop the data for your neighborhood. Contact Us
2014 Neighborhood Appraisal Data
The neighborhoods listed below have 2014 Preliminary Appraisal data and resales for 2012-13. If you do not see your
neighborhood listed, it has not been completed and you might want to consider volunteering to work up the data for your
neighborhood. You will also note that accessing the data sheets is restricted to BCA members only.
Click here to login and view the Neighborhood data sheets
Interior
(28)
74050.0
74051.0
74052.0
74053.0
74055.0
74056.0
74057.0
------------74078.0
74079.0
74490.0
Golf Course
(15)
74052.1
74053.1
74055.1
74056.1
74058.1
74059.1
74060.1
------------74069.1
74075.1
74079.1
Waterfront
(17)
74050.3
74051.3
74052.3
74053.3
74056.3
74057.3
74063.3
----------74077.3
74078.3
74490/91/92.3
Resales
2012 Golf Course
2012 Interior
2012 Waterfront
2013 Golf Course
2013 Interior
2013 Waterfront
Neighborhood 74075.1
Q-REF ID
ADDRESS
SQFT
2014 Preliminary Appraisal
IMP $
LAND $
TOTAL $
$/SQFT
R328161
R328162
1171 BENTWATER DR
1175 BENTWATER DR
6200
4399
739180
485540
270310
234580
1009490
720120
163
164
R328163
R328165
R328166
R328167
R328168
140 HERMITAGE DR
148 HERMITAGE DR
152 HERMITAGE DR
156 HERMITAGE DR
160 HERMITAGE DR
4320
4351
4185
3187
3937
369450
392440
361800
330010
369100
192680
183710
183710
183710
183710
562130
576150
545510
513720
552810
130
132
130
161
140
R328171
R328172
R328173
R328174
R328175
R328177
R328178
R371631
R371635
R371636
R371638
R371639
172 HERMITAGE DR
176 HERMITAGE DR
180 HERMITAGE DR
184 HERMITAGE DR
188 HERMITAGE DR
196 HERMITAGE DR
200 HERMITAGE DR
119 RIDGE LAKE
135 RIDGE LAKE LN
136 RIDGE LAKE LN
147 RIDGE LAKE
151 RIDGE LAKE LN
4062
3117
4443
4059
3985
4350
4352
7760
4707
6561
5868
4507
381580
323630
450170
391680
348100
421250
402440
913890
435280
341560
466990
455320
196870
195420
206890
196820
173600
205650
188700
267380
363600
226580
238750
248330
578450
519050
657060
588500
521700
626900
591140
1181270
798880
568140
705740
703650
142
167
148
145
131
144
136
152
170
87
120
156
Neighborhood Median =
Neighborhood Average =
144
143
RESALE =
(116)
Neighborhood 74070.1
2014 Preliminary Appraisal
Q-REF ID
ADDRESS
R265244
R263990
R263992
25 W SHORE CT
59 MARSEILLE
43 MARSEILLE
R246078
R246079
R246080
R246081
R246082
R246083
R246084
R246085
R246045
R328218
R360045
R360048
R360050
R360053
R360054
R360066
R360069
R360076
R308359
R308360
R308363
R308364
148 W PINES DR
140 W PINES DR
132 W PINES DR
124 W PINES DR
116 W PINES DR
108 W PINES DR
100 W PINES DR
92 W PINES DR
156 W PINES DR
340 W SHORE LN
3160 BENTWATER DR W
350 GREYPINE W
342 GREYPINE W
3155 BENTWATER DR W
3139 BENTWATER DR W
319 GREYPINE E
306 GREYPINE W
334 GREYPINE W
54 WESTLYN LN
392 W SHORE LN
368 W SHORE LN
360 W SHORE LN
SQFT
IMP $
LAND $
TOTAL $
$/SQFT
5500
4009
3697
776280
398430
424140
176580
131070
113930
952860
529500
538070
173
132
146
358380
338440
359450
381130
383630
356190
335430
326680
343710
458940
392980
484130
427210
408500
746380
532510
502090
459620
506290
402350
379750
476160
74750
73280
73160
74570
77960
79740
79560
80710
75640
85020
89600
93710
89600
68030
90090
90690
77150
90910
96130
91080
78400
77850
433130
411720
432610
455700
461590
435930
414990
407390
419350
543960
482580
577840
516810
476530
836470
623200
579240
550530
602420
493430
458150
554010
131
143
126
120
133
135
128
126
140
136
136
115
142
113
136
117
121
129
136
131
124
130
3312
2889
3443
3807
3467
3221
3244
3238
3003
3999
3540
5035
3642
4205
6150
5328
4798
4260
4444
3778
3688
4250
Neighborhood Median =
Neighborhood Average =
128
128
SOLD = 182
Reasons to Protest your Appraisal
Incorrect Property Data
- SqFt of Improvements and Land
- Add-ons
Unequal Appraisal ($/sqft)
- You stand out among neighbors
- Ratio of Appraisal/Resales
Inappropriate Comps
- Not enough comps, old comps
- Class, Age and /or size of comps
- New build and foreclosures
- You have better comps
What To Do Next
Make informal visit to MCAD
 Submit your protest form
 Confirm your data, get your comps
Analyze your Appraisal
 The BCA website provides Neighborhood Appraisals
and Resales – Study the data!
 Do you stand out in your Neighborhood?
 Do you have better comps?
 Is there a case for “unequal appraisal”?
 What’s your argument?
 Work with your neighbors
 Return to MCAD for informal discussion
GOOD LUCK!