Home Property Value Dispute
Posted by Masterchiefer3@reddit | Dallas | View on Reddit | 38 comments
Just received my home appraisal from DCAD and it was significantly higher than what I bought the home for a few months ago. I bought the home for $100k less than it has been valued at with little to no improvements. I don’t foresee an issue getting my value lower to the purchase price as it is a direct comp.
However, a lot of damage and deferred maintenance which was not caught in my inspection was identified and I am curious if I can get my home valued even lower than the purchase price based on the following:
I’ve identified some major damage such as subfloor rot, garage has significant damage (Foundation, termite, wood rot), driveway completely cracked and raising in multiple directions, AC unit is at the end of its life, roof is pretty warn, etc. All of this plus many other issues not listed would amount to at least $70-$100k in repairs/replacement cost.
I am curious if anyone has had any luck with getting a lower appraisal value based on a the actual lower recent purchase price and needed repairs.
Thanks!
salmon_guacamole@reddit
For anyone reading this who won’t have such an easy fight, make sure you take photos of every single defect and include current quotes for repairs to fix those issues.
I make a PDF compiling the photos (4 to a page, labeled and numbered), add a spreadsheet referencing each of them and include quotes for everything from window replacement to foundation and major plumbing.
They really only care about issues that need to be fixed to maintain functionality. They don’t care if your fence needs to be re-stained.
wes45454@reddit
This is the way, I have been told explicitly by the board in a hearing that having actual repair quotes is what you need to have
DonkeeJote@reddit
Just submit the purchase price at your protest.
Adorable-Amoeba2161@reddit
At least you have a really clear case though, recent purchase price that far under their number is hard for them to ignore I think. The damage stuff could help too but you'd probably need actual contractor estimates
We've actually been looking into Ownwell for our protest this year and they just take a percentage if they save you money. Might be worth checking out depending on how much you want to DIY this
Would love to know how it goes when you submit, feels like you have a strong enough case to get pretty close to purchase price at least
IAmTurdFerguson@reddit
I had luck in the past disputing via propertytax.io
The previous year when I attempted to dispute by myself with the exact same information, I basically got laughed out of the room.
Masterchiefer3@reddit (OP)
Information such as the damages or that you purchased the home recently for much lower? I understand the damages are much harder to get a lower value for, but seems like most haven’t had issues if they recently bought the home for much less.
Cedosg@reddit
you need actual quotes to repair. Get multiple quotes. It's harder to dispute repairs needed from multiple quotes/contractors. (get an average and then use that to reduce the price you paid for it.)
Mention that the inspection failed. Make sure you include that as the documentation that they didn't fully inspect that area, etc
ScarHand69@reddit
Yes you can use the recent purchase price to bring the value down as that is the most accurate reflection of what the home is worth…what it recently sold for.
Arguing for another $70-100k off seems unlikely unless throughly documented as you’re essentially saying you overpaid by $70-100k. Would you agree with that?
Masterchiefer3@reddit (OP)
As bad as it sounds, I most certainly over paid for the condition the home was in. Unfortunately it is in a desirable area and I needed to move fast, so some issues went unnoticed. I got a very small seller credit for what was identified, but nothing close to the amount of repairs needed.
Going to provide that context. My inspector couldnt get into certain areas where there were significant damage or to be able to identify some of the deferred maintenance.
Cedosg@reddit
yes. use the purchase price as the starting base. and any actual quotes and pictures of damages, etc.
ScarHand69@reddit
Bummer sorry to hear that. No clue how successful you’ll be in getting it lowered a significant amount less than what you paid. Go in with a ton of paperwork documenting everything, including repair quotes, and who knows. If you don’t ask the answer is no
Masterchiefer3@reddit (OP)
Thanks yeah figured it’s worth a shot to get more off for the damage. I have a ton of pictures showing this and have gotten a few quotes so hope they will flex down a bit off the purchase price!
longhornrob@reddit
I’d definitely have your inspection report ready to show that the items weren’t identified prior to purchase.
bluesoldier007@reddit
Yes, you can protest using a recent purchase. When I did this it dropped the appraised value of my home by nearly 100K.
UpInTheAirDFW@reddit
My cynical suspicion is that DCAD intentionally and massively overvalues houses that have sold with the outcome being that the new homeowner will happily give up the purchase contract to get the price back down to what they paid for it. Then, DCAD can use that new purchase price information against the neighbors to raise their appraisals. Repeat over and over. Since Texas is a non-disclosure state where homeowners don't have to (and therefore don't usually) make the sales price public, this is how DCAD flushes out the information.
NJB9891@reddit
Why would they do this when they have public record showing (virtually) every home purchase price in the County?
UpInTheAirDFW@reddit
Those records aren’t public in Texas.
BBC911@reddit
Keep thinking that. Bro they have the same data the realtors have to see what the house sold for.
axii-24@reddit
Idk why you’re getting downvoted. As a realtor, this has also confused me. Like how do they not know but I know?
Masterchiefer3@reddit (OP)
Thanks!
yashBoii4958@reddit
your recent purchase price is strong evidence on its own, and documenting those repair costs with estimates will help push it lower. i used Resolute for my dallas county protest and they knocked mine down a decent chunk.
StrawberryHour7102@reddit
Yep. Had this exact scenario. Contested with pictures and quotes from multiple companies on the repairs. Knocked 200K off the value of the home.
Scoooby222@reddit
We used to protest every year for at least a decade. We used a service. It was called O’Connor. Their fee is a small portion of the savings if I recall correctly. I would use them again. No complaints.
Strict-Local9865@reddit
Use OwnWell
Powerballs@reddit
Yep, if you bought it recently, your closing docs are usually strong evidence to get DCAD down to the purchase price. On top of that, documented condition issues can sometimes support pushing it lower if you can clearly show they existed as of Jan 1 and you’ve got photos, contractor bids, engineer reports, roof/HVAC estimates, etc.
The cleanest version is usually:
I built TaxAppealCenter.com, and this is one of the more straightforward fact patterns when the purchase was recent and the condition problems are real and well documented. I would absolutely protest it.
fallinglemming@reddit
I don't know if this is your primary residence if it is you can use a homestead deduction of 100000. If not take photos of damage to the property explain there have not been improvements. Lastly ask for proof of their appraisal most of the time they will send you a reduced tax settlement offer. If none of that works file a formal protest and ask for a hearing, they will usually try to settle the issue before the hearing.
temptationryan@reddit
Give them the purchase contract - they will adjust it to that, assuming it’s an arms length transaction. You should have luck keeping it at that value for a couple years then all bets are off.
Rortugal_McDichael@reddit
Yeah, what the home is worth, is literally what you paid for it. This happened to me when I bought a few years ago.
Masterchiefer3@reddit (OP)
Yeah thanks, no concerns about getting the value down to what I bought it for. The issue is there was a lot of unidentified damage which anyone would have gotten a credit for or the home value lower. Trying to see if I can get a decrease in value based on the sale plus the unidentified damage
Rortugal_McDichael@reddit
That might be more difficult, since you paid for it at that value. But go around your house and take photos of all the damage, every cracked interior/exterior wall, brick, driveway, and anything else that looks like it could reduce the value. Drop all those photos in a word doc, and include a brief write-up to include as an additional attachment when you submit your protest.
onlytoupvote@reddit
Yep! Can confirm this worked for me too.
LittleChanaGirl@reddit
Did you get an appraisal done during the purchase process? If so, use that. Dallas County can’t exceed that number.
Masterchiefer3@reddit (OP)
Sure did! My lender actually waived the need for it but I decided to still pay for it so DCAD couldn’t try to get more out of me. Are they actually not allowed to go hire? If so that’s great news!
LittleChanaGirl@reddit
Correct. It’s hidden in the tax code somewhere, but I cannot find it.
tristand666@reddit
I have disputed a couple ways. One time I took pictures of all the issues, listed the quotes for repair and deducted this from the appraised value. They gave me an offer that was just a bit higher so I took it. The other way was to just hand them an actual appraisal. I figure if I spend a few hundred dollars every few years for an appraisal to reduce their crazy valuations, it is worth it.
Masterchiefer3@reddit (OP)
Yeah i actually have a formal appraisal of my homes value at the exact purchase price. My mortgage broker offered to waive it but I chose to pay it in case this happened as it makes it very hard for DCAD to dispute.
me_vs_internet@reddit
I’m not in Dallas County but had a similar thing happen when we bought our house in Denton County. I just provided the documentation showing purchase price and they lowered the valuation accordingly. I assume it’d be a similar case
Masterchiefer3@reddit (OP)
Thanks!