BELL COUNTY, Texas — The shock of the property tax appraisal season is here, and the road, for some, has been traveled before.
"So last year, I wrote it down, so last year, they appraised us at $377,000 and I protested and they lowered it to $265,000," Ashley Wyatt said.
She and her husband, home owners in Bell County, are still wrapping their minds around the hike.
According to Realtor.com, the median list price of homes in Temple is $210,000, up 10.5% year over year. In Waco, the average price of a home went up just less than 10% to $197,000.
There are several factors that could cause your property value to increase. In Central Texas, some call it the "Fixer Upper Effect.”
Here are three common reasons why property values might increase, according to Realtor.com:
1. Home improvements
Renovations can up a home’s value. Updating a bathroom or kitchen could increase value. Finishing or converting space in a home into a livable area, like an attic or garage, could cause your home to be reassessed.
2. Revaluation
Communities and counties reevaluate properties every now and then. During revaluations, government officials or hired appraisers review all real property to figure out its current assessed value. Revaluations are used to make sure the tax burden is spread equitably and accurately among the homeowners in a given area.
3. Nearby home sales
Home sales are sometimes the single greatest factor in determining how nearby home and property values are calculated. Bell County chief tax appraiser Billy White told Channel 6 that as few as three similar home or property sales can determine the market rate for a home in a typical neighborhood. If the value of a sale is much larger than an equivalent home’s value, then the value of that home goes up.
Joe Bobbitt with the McLennan County Appraisal District said if you disagree with the appraisal of your property, you have the right to file a protest with your county.
"If they really disagree they need to file a protest but when the appraisal district sends out an evaluation and it's not a bill by any means, it's a 'Here is our evaluation, let us know if you disagree with that value,'" he said.
Wyatt will file a protest of her appraisal again this year after the market value on her home appraised at $391,000, with the Homestead Exemption, it still values higher at $291,000.
"During times like this when a value has increased more than 10% in one year, it stops it at 10%. So the assessed value will only be 10% higher from the previous year whereas the market value may increase, 15, 20, whatever the market is showing," Bobbitt said.
Wyatt's advice to others in the same boat, especially first-time home buyers who could be on the hook this year: Be prepared and know the values of the homes around you.
"Do your homework, again, do your homework and make sure you have your exemptions. Make sure you file all your paperwork," she said.
If you or someone you know needs to apply for the Homestead Exemption, you can do so, here.