Recently I went on a listing appointment in Round Rock. I looked at their tax appraised value then did a market analysis. A market analysis is done by looking at the solds in your area within the last few months.From here on out we’ll refer to this as a CMA (competitive market analysis)
No matter how many different ways I did the CMA I could not get the value to resemble anywhere close to what the sellers were expecting. They were expecting the value of their home to closely remember the tax value. But looking at the solds there was a vast difference. Problem was several homes had recently sold at a much lower rate than the tax appraised value.
So what determines what your home is worth, the tax value or the market value. Answer is the market value. A home is only worth what someone is willing to pay for it. And when a buyer is getting a loan the home has to appraise for the value of the loan. An appraiser will do a CMA to determine the market value of the home. They will not base their appraisal on the tax value.
What does the tax appraisal value determine then? It determines how much property tax you’ll have to pay. That’s right. If your tax appraisal comes in higher than market value, you still have to pay on that tax appraised value. What do you do? You fight your tax appraisal!! You contact a REALTOR and ask them to do a CMA for you – look at what has sold in your neighborhood. If the market shows a lower price than what the county is quoting you then you have the perfect weapon to get your tax appraisal lowered. Therefore your getting your taxes lowered!!
Many have no idea how to fight their taxes. They get their statement in showing their appraised value, get mad and then give up. So now you know how. You know my Round Rock sellers will definitely call me up this next time around so they can challenge their taxes.
If you’d like to know more about the market value of your home, or to discuss how to sell your Austin home, contact me today.