Don’t let your appraisal district overvalue Harvey-flooded home

O’Connor, a property tax consulting firm, reports that many Texas Gulf appraisal districts are actively using an inappropriate valuation model as a means for revaluing homes.

While many are still rebuilding after Hurricane Harvey, tax season has arrived, placing a heavier burden on many Texas homeowners.

‘As flooded’ value

“Appraisal districts are incorrectly calculating the ‘as flooded’ value of homes impacted by Harvey and only considering the amount of physical damage,” said Patrick O’Connor, president of O’Connor. “Market value is based on a variety of factors. Many appraisal districts are ignoring their statutory duty to value property at market value.

“It is not practical to value a flooded house by simply deducting the cost of repairs. Additionally, a buyer for this type of property is typically paying 41 percent of the market value before flooding, based on a recent study by Property Analytix of 345 Houstonarea houses.”

O’Connor wants homeowners to know that appraisal districts are often valuing flooded homes at double their market value for 2018. Appraisal districts are relying heavily on homeowners to “self-report” and to directly reach out to the appraisal district if their homes were flooded. By depending on selfreporting, only 10 percent of flooded homes are properly valued.

Port Arthur Mayor Derrick Freeman told CBS News that 20,000 homes had as much as 6 feet of water in them during Hurricane Harvey. However, Jefferson County Appraisal District has only learned of 901 flooded properties in all of Jefferson County as of late January. This is because JCAD is using self-reporting and only revaluing homes if the owner reports the flooding and provides appropriate support, instead of attempting to identify which homes were flooded.

Appraisal districts are mandated to value property at market value by Texas Tax Code Section 23. It is impossible to value flooded property without knowing if it flooded or the amount of the damage.

Even though appraisal district staff find it difficult to revalue flooded properties, it is a requirement by law. This article was provided by O’Connor.