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Despite recession, appraised home values up this year



Wednesday, June 10, 2009

Despite a deep recession and a nationwide housing slump, McLennan County’s tax base grew last year by 6.9 percent, according to new preliminary tax appraisal estimates.

And as thousands of homeowners receive their appraisal notices this week, they’re keeping the McLennan County Appraisal District’s phones ringing with the same question: How could their home values have increased in such a year?

The appraisal district Friday sent out the bulk of residential notices for Waco, along with most commercial notices. Many suburban homeowners received their notices late last month.

Countywide, the average home saw a 3.3 percent increase in taxable value, from $111,808 in 2008 to $115,547, as of January 2009. While Waco home values remained flat, suburban areas such as Woodway and Robinson saw increases of more than 5 percent.

On Kingsbury Way in Hewitt, homeowner Robert Andrews was flabbergasted to see the value of his two-story home increase from $120,000 to $145,000.

“It seems like the appraisal district has been sequestered for the last 24 months,” said Andrews, who works for a local telecommunications company. “Several of these homes in this neighborhood have been for sale for more than 18 months. It’s frustrating for me that in the middle of a (recession), the appraisal district is pressing on like there’s no tomorrow.”

Chief Appraiser Drew Hahn said there was no clear trend to home values this year.

“Some went up, some went down,” he said. Hahn noted that the preliminary value of a home is based largely on recent sales of comparable homes.

In some cases, the increases were actually several years overdue, and the appraisal was merely catching up with the actual home value. In other cases, he said, the market value increased several years ago, but the effect has been delayed because of a state-mandated 10 percent annual cap on taxable value.

Robert Andrews, of Hewitt, says the appraised taxable value of the home where he has lived for 12 years went up by $25,000 this year. That was a surprise, given the economy and soft housing market. "It seems like the appraisal district has been sequestered for the last 24 months," he said. (Duane A. Laverty photo)


Hahn said increases on existing homes make up a relatively small part of this year’s tax base increase. Much of it comes from new commercial and industrial property, including downtown development, the Riesel coal-fired power plant and new Caterpillar facilities. And though the housing market has slowed, $96.8 million in new single-family home value was added countywide last year, according to the preliminary figures.

Property owners have 30 days after receiving their notices to file a formal protest of their value, to be heard by a panel of real estate professionals called the Appraisal Review Board.

Property owners also can meet informally with staff appraisers and present evidence in support of adjusting the value. That evidence could include recent sales of comparable homes or hidden problems with the property in question.

Hahn said that as a result of the protest process, the overall county increase of 6.9 percent could drop by two or three percentage points.

Kathy Schroeder, vice president of residential real estate for Coldwell Banker, said she was surprised to hear of the extent of home value increases in Midway Independent School District and Robinson.

“Overall, the market’s pretty flat, at about the same prices we had last year,” she said. Some rapidly growing areas, such as China Spring, may have had some “deflation,” but overall the market is healthy, and builders have become cautious about speculative building, she said.

Schroeder, who lives in Midway ISD, said she thought her appraised value was accurate last year, but she thought this year’s estimate was inflated. She made her case to an appraiser and got the value rolled back.

“They were really nice at the appraisal district,” she said. “They were trying to get everyone in, which isn’t easy to do.”

jbsmithwaco@wacotrib.com

757-5752




McLennan County Tax Values



Avg. home Avg. home%2008 certified2009 preliminary%
value 2008value 2009changetaxable valuetaxable valuechange
Waco$108,840$109,447.56$6,009,289,503$6,402,836,7386.55
McLennan Co.$111,808$115,5473.34$10,155,281,829$10,854,284,9366.88
Hewitt$129,648$134,5933.81$585,100,002$608,228,5383.95
Woodway$177,253$189,1296.70$773,716,936$831,893,4147.52
Robinson$118,465$124,9545.48$500,417,509$536,887,5677.29
Bellmead$58,096$59,9393.17$309,068,414$337,988,9619.36
Lacy-Lakeview$80,339$83,8124.32$248,625,989$267,943,3427.77
China Spring ISD$161,650$159,205-1.51$509,585,886$539,556,4765.88
Waco ISD$89,547$89,969.47$4,000,616,151$4,246,363,5636.14
Midway ISD$163,882$171,5044.65$3,244,088,980$3,510,264,7318.20

Source: McLennan Co. Appraisal District

Comments

By mec

Jun 13, 2009 8:07 AM | Link to this

It seems that our city and county governments are very greedy for money. The tax payers need to find some way to force them to stop building junior high schools, moving monuments around the city for aesthetic purposes and indulging in pork barrel brother-in-law projects.

By Allen

Jun 12, 2009 7:32 PM | Link to this

It is a fact that if you look at appraised value vs. the sales values that were listed by realtors, Waco enjoyed a HUGE difference. This was especially painful during the Chapter 41 (Robin Hood) years. Robin Hood is what caused Carole Keeton Strayhorn, then Comptroller, to force counties to appraise properties in line with market values. We observed millions of dollars redistributed from our school districts to property poor districts who built unnecessary monuments of sports facilities with excess monies as they otherwise had no idea of how to spend their new wealth.

I have the privilege of owning property in Travis and Llano Counties and the appraisal districts there are killing us as they negotiate under the table and observe no consistency in the treatment of property owners. While owners can appeal, it is a worthless effort to dispute assessments on your own. These sessions require the services of a professional to take on these districts. I know because I have tried in both counties with negligible results. We continually receive mailers from Houston offering to negotiate on our behalf for a fee representing 20% of the savings in tax.

With the shift in occupations bringing the surge of new residents who are driving increased services, it would be worthwhile to strongly consider a transition to a state income tax. This would share the associated increased cost of services from disproportionate property-related assets to a more proportionate share born by all residents. This is especially true as city and county officials freely grant tax waivers and abatements to large companies taking those properties off the tax rolls and shifting the recovery of critical tax revenues to the remaining properties. Additionally, it would establish a system of taxation that is more fair/understandable and away from an unaccountable group that lacks consistency and professional oversight and from a system that the basic property owner cannot truly understand nor battle against on their own.

By Frank

Jun 11, 2009 9:38 PM | Link to this

I went down to the appraisal district today to talk about my home value and also my business value. When I walked in, it seemed as if the girl that sits up front was very irritated that I was there. She was very rude and upon telling her what I needed, she just rolled her eyes and told me to file a protest and that I would get a packet in the mail. I understand that she was very busy, but there is no reason to be rude. If you dont like your job, then QUIT. I asked her if I needed to file a protest for my business too and she told me that I needed to go up the elevator for that. During the LONG ride in the elevator, I was thinking, "Oh great, I get to talk to another rude person" When I got off of the elevator, I was greeted with a smile and that made me feel good. The young girl whos desk is right off of the elevator (I think her name was Kelly) was very nice and very pleasant to talk with. She answered all of my questions without seeming as if I was bothering her. They should have more people like her working here. Thank you Kelly for making me feel like a HUMAN and not a DOG!!!!!

By Frank

Jun 11, 2009 9:31 PM | Link to this

I went down to the appraisal district today to talk about my home value and also my business value. When I walked in, it seemed as if the girl that sits up front was very irritated that I was there. She was very rude and upon telling her what I needed, she just rolled her eyes and told me to file a protest and that I would get a packet in the mail. I understand that she was very busy, but there is no reason to be rude. If you dont like your job, then QUIT. I asked her if I needed to file a protest for my business too and she told me that I needed to go up the elevator for that. During the LONG ride in the elevator, I was thinking, "Oh great, I get to talk to another rude person" When I got off of the elevator, I was greeted with a smile and that made me feel good. The young girl whos desk is right off of the elevator (I think her name was Kelly) was very nice and very pleasant to talk with. She answered all of my questions without seeming as if I was bothering her. They should have more people like her working here. Thank you Kelly for making me feel like a HUMAN and not a DOG!!!!!

By OverTaxedInWest

Jun 11, 2009 10:22 AM | Link to this

People 65 and over get a discount and have their tax amounts frozen. After that no matter what the assessed market value becomes, they never pay more than the frozen amount. My 85 year old neighbor has her house appraised over 120K and she only pays about $275 which was the amount frozen 20 years ago. She doesn't care how much they appraise it for.
Learn the system and work with it.

By anonymous

Jun 11, 2009 10:09 AM | Link to this

The ones I feel most sorry for in this are some of the elderly who are living on fixed incomes and do not have the faculties/knowledge/resources to protest their increase. I know of a few specific examples and it really, really disturbs me.

It certainly would not be sponsored by any government or government-dependent group, but I wish there was a place where some of these people could get some assistance. These are the folks that cannot go out and get a second job to keep up with these increases.

By OverTaxedInWest

Jun 11, 2009 9:51 AM | Link to this

I imagine a bunch of monkeys throwing darts to determine assessment increases, but I'm sure it is more oraganized than that all to our disadvantage. I have one house that increased 30% and the other one 10%. The protests start Monday and I'm scheduled in at 10 a.m. I've played this game before, I will make my case and my assessments will be reduced back to what they were last year or probably less than that.
The sad thing is that most people will just grip and then pay causing mine to eventually increase to match their values and I will have to do this again in a few years.
It's all a scam. Look at who sits on the review board, a bunch of realtors who have it in their interest to see values increase because they are paid on commission for sales.
Protesting is easy to do and all the info you need is easily available on the Internet. So grip with me now for having to prepare and protest, but you will be griping alone when then tax bill comes.
Come on people. Send in that protest form and stand up for yourself.

By anonymous

Jun 11, 2009 9:43 AM | Link to this

I think it's pretty simple. They have to raise taxes so that when the value of the dollar tanks, they will have enough funds available to raise their own pay so they can continue to buy groceries and gas.

By Worried

Jun 11, 2009 9:14 AM | Link to this

You know what else worries me about this, is folks whose taxes are held in escrow by the morgage companies. By law they are allowed to have a buffer in the escrow account (not sure but I think its 25%). So you can add that in addition to the tax (If it is escrowed). I guess they are trying to tax the citizen into poverty.

By Bobby 613

Jun 11, 2009 9:05 AM | Link to this

LOL I don't think I would want to adjust to the inflation rate after they printed all that money. I believe inflation will rise at a breakneck pace over the next 5 years due to the money printed for the bail outs, TARP, Stimulous or whatever the heck they call it.

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