Looking for feedback and protesting taxes with multi-family.
Tammy HelblePro Member
Member since 2022 · 47 posts · 11 votesI have two duplexes that are new builds in Texas and getting ready to protest the taxes on both as they are prospoing both have increased in value. I have three questions around this:
1) when there aren't any good comps in the area to pull from to argue my side what are some thoughts about how to proceed? One of my homes there I was able to only grab pendings sales even.
2) Texas doesn't seem to post what properties sell for so when pulling comps for those that have sold I come up empty handed knowing what they actually sold for so any ideas on how or where to get the prices?
3) Outisde of comps and likely what all you can come up with that is wrong with your property does anyone have any other ideas of what else to state to show why your property should value for less?
Thanks in advance for any feedback or help!
Cheers, Tammy
First off, what county are the duplexes located in? Depending on where, I may be able to help.
TX is a non-disclosure state, meaning the sales data are not disclosed publicly. The only was to get the data is directly from the MLS. Easiest way to do that is through a realtor contact. You can get a good idea of the sales price by looking at the listing price prior to it selling and assuming the sales price is close to the list price. You can see listing history on zillow and other similar sites. I am not sure if you can find the listing agents info, but if you can, just call them up and ask them what the final sale price was.
I believe the county needs to provide their data of what comps they used to value your properties. In the counties where my rentals are, they provide that directly through their website. Then, I can use that info and review it and form arguments of why they do not adequately represent my property's value, etc. I would find out how to get that info first.
When you mention there "aren't any good comps in the area," what exactly do you mean?
There aren't any recent sales of new duplexes? There aren't any recent sales of duplexes at all? or?
If there aren't any good comps in the area, why are you thinking it is being overvalued by the Assessor? What are you basing that on?
From an Appraiser's viewpoint, if comps are lacking, we would approach it in multiple ways.
* Look back in time to older comps of similar properties and estimate today's value, based on where the market trended (appreciation, etc).
* Look at recent sales of ANY duplexes in the area and adjust for differences (older built, inferior quality/condition/location, gla, bedroom/bathroom, etc)
* Look at recent sales in other neighborhoods and adjust for differences, including neighborhood differences (Yours might be in a better Nhbd or worse, etc)
We would also to a cost approach. Estimating the cost to build and adding the land value and possibly some expected "entrepreneurial profit."
So, did you build these duplexes, or buy them from a builder or investment company? And either, how much did they cost to build + land cost, or how much did you pay for the completed or proposed new builds? And could the market have increased since you went under contract with them?
So, it's hard to help without more context, like, why do you think their proposed values are too high?
Tammy,
thank you I should have thought to express that in filing the protest as I'm doing it's there that I'm looking for what all else I could and should say. Thnaks, I'll look for some videos than and see what ideas folks have.
First off, what county are the duplexes located in? Depending on where, I may be able to help.
TX is a non-disclosure state, meaning the sales data are not disclosed publicly. The only was to get the data is directly from the MLS. Easiest way to do that is through a realtor contact. You can get a good idea of the sales price by looking at the listing price prior to it selling and assuming the sales price is close to the list price. You can see listing history on zillow and other similar sites. I am not sure if you can find the listing agents info, but if you can, just call them up and ask them what the final sale price was.
I believe the county needs to provide their data of what comps they used to value your properties. In the counties where my rentals are, they provide that directly through their website. Then, I can use that info and review it and form arguments of why they do not adequately represent my property's value, etc. I would find out how to get that info first.
When you mention there "aren't any good comps in the area," what exactly do you mean?
There aren't any recent sales of new duplexes? There aren't any recent sales of duplexes at all? or?
If there aren't any good comps in the area, why are you thinking it is being overvalued by the Assessor? What are you basing that on?
From an Appraiser's viewpoint, if comps are lacking, we would approach it in multiple ways.
* Look back in time to older comps of similar properties and estimate today's value, based on where the market trended (appreciation, etc).
* Look at recent sales of ANY duplexes in the area and adjust for differences (older built, inferior quality/condition/location, gla, bedroom/bathroom, etc)
* Look at recent sales in other neighborhoods and adjust for differences, including neighborhood differences (Yours might be in a better Nhbd or worse, etc)
We would also to a cost approach. Estimating the cost to build and adding the land value and possibly some expected "entrepreneurial profit."
So, did you build these duplexes, or buy them from a builder or investment company? And either, how much did they cost to build + land cost, or how much did you pay for the completed or proposed new builds? And could the market have increased since you went under contract with them?
So, it's hard to help without more context, like, why do you think their proposed values are too high?
Thank you for your response. I purchased both duplexes in Harker Heights, TX. Since they are a non disclosed state that made it tough for comps when I was protesting the house I also have in that area. I did purchase the duplexes from a builder and with them being brand new paid more than others in the area. I was trying to find similiar copm to duplexes in that specific area and was comig up empty handed since there deosn't seem to be other new ones where I purchased. I did watch a number of videos where I did learn you can ask for the comps they used to see what the differences are. I'm not certian they are assessing too high expect when I look at some of the other duplexes that although they are not brand new are pending for far less. I'm good paying what I owe in taxes however I don't want to be overpaying as I know that will raise my payments. I at least field prior to the deadline and can now see what comps they used and see more where I stand.
We've had success protesting our taxes on larger multifamily by hiring a firm like CMI (Cantrell McCulloch) in texas to protest on our behalf, though I'm not sure if it would be cost prohibitive to have you hire them. Perhaps give them a call and ask for a quote.
Regarding comps, any good realtor should be able to pull the MLS data for you for free for a chance to win future business from you.
Thanks! I did get one of the three settled already but still waiting to hear back on both duplexes. I'll keep that in mind as any extra money going out right now isn't ideal. Someday it won't matter so much. Thanks again!