A reader writes:
I live in a newer downtown condo. As you may be aware, the assessed values are very low for many of the properties. The strange thing is that some of the homeowners for THE EXACT SAME FLOOR PLAN have values on DCAD that reflect market prices, while others are at outdated below-value values. I’m one of the lucky ones. It makes no sense. The only thing I could think of is that *something* is triggering a review or audit. I wondered if somehow the homestead exemption was triggering a re-appraisal for the folks with higher values. Clearly, this is all theory, but something is going on! Help CandysDirt!
Dear reader:
We consulted our trusty Tax Doctor, Rob Wheelock, who tells me that often Appraisal Districts offer developers what is referred to as a Builder Inventory Valuation. That value can be 30 to 60% below market value, depending upon the time allowed to sell off the inventory. (My guess is you are in one of the condos that has taken a while to sell.) The lower value stays with the property until the following year after the purchase, so if you buy a unit from the developer today, you get the benefit of the lower property taxes for all of 2015, but it will go up the following year to the market value. I’d bet that the units that currently reflect market prices were purchased in 2013 or before.
I’m betting you purchased in 2014 and got the developers value, but when they receive their 2015 valuation in early May, it will reflect market prices.
Hope this helps! If anyone out there has any other ideas, the comment lines are open!
