Keep Gaining Little Pieces of Knowledge

[Daren H.]

For the record, I am still relatively new to the REI game so I like learning new things. So I picked up a rental property about 2 months ago. At the time of purchase I knew the tax appraised value was out of whack. In my previous rental purchases the tax appraisal value always ended up reflecting at or near what I paid for the property when records were updated. I expected the same to happen in this case and the taxes to be lower going forward (2016 tax year). In this recent case, I noticed that the appraisal district tax records were updated to reflect me as the new owner but the tax records still showed the appraisal value ~$40K more than what I felt it should be. All information on the county appraisal district website stated that it was too late for me to protest. I decided to call the appraisal district and I spoke to a residential appraiser. I explained to him how I thought the appraised value was out of whack compared to other neighboring properties. I had done some research on the other neighboring properties and was prepared to show how the comparable properties were appraised at lower values. I also brought my HUD-1 and "hand selected" favorable comps to further support my position J The appraiser mentioned it was too late to protest property taxes for this year. However, he mentioned there was a provision in the property tax code that basically said if the appraised value was 33% more than what it should be, taxes could be reassessed and reduced accordingly despite being outside the protest period. I took my supporting documents (list of neighboring property appraised values, my HUD-1, and hand selected MLS comps) down to the appraisal district office and met with an appraiser in the office. I showed him how my appraised value was out of whack by about ~$40k. He immediately said he could fix it for next year taxes by making the appraised value the purchase price from the HUD-1. This was a ~$40K reduction resulting in potential savings over $1K for 2016. He then broke out his calculator to determine if it tripped the 33% rule. I was short by about ~$700 or so from triggering the 33% rule. The appraiser said since it was so close he could probably still get an adjustment for 2015 taxes. I got the call today that he could move forward with an adjustment for 2015. This will save over $1K in property taxes for 2015 in addition to savings in future years (compared to what it would have been). I know it is not much in the big scheme of things, but it is these little pieces of knowledge and experience that I gain that I feel will one day turn me into the experienced guy. Even then, I will look to continue adding little pieces of knowledge!