Disclosure and non-disclosure states refer to a state’s ability to publish property sale prices via public record. Without sales data, it is hard to access comparable sales, which can make property tax assessments inaccurate. Comparable sale prices are often valuable evidence to homeowners who are appealing their appraised value and trying to lower their property tax bill.
In this article, we’ll further explain what it means to live in a non-disclosure state and its implications for Texas homeowners and their property tax appeals.
Understanding Non-Disclosure States
In some states, the home sale prices are considered public information and are accessible to anyone interested, from potential buyers to curious neighbors. This transparency allows property tax assessments to be based on actual market values. However, that’s not the case in non-disclosure states.
Non-disclosure states, as the name suggests, do not require the disclosure of real estate sale prices to any public body or database.
Currently, there are 12 non-disclosure states:
- Missouri (partial)
- New Mexico
- North Dakota
This lack of transparency can complicate matters for homeowners, especially when it comes to determining a property’s market value for taxation purposes.
Implications for Texas Homeowners
Texas is one of the non-disclosure states, which means home sale prices are not public record. Without access to sale prices, establishing a baseline for a fair market value appraisal becomes trickier. Typically, county appraisal districts in Texas use complex algorithms that take into account the characteristics of the home and the local real estate market trends.
However, the lack of disclosed sale prices may lead to assessments that homeowners perceive as inflated or inaccurate.
What This Means for Property Tax Protests
So, what does this mean if you want to file a property tax protest? Without concrete data to contest the county’s appraisal of your home’s value, it can be difficult to present a compelling case for a reduction in your property taxes.
Other Methods of Gaining Evidence for Your Appeal
When dealing with a non-disclosure state where property sales prices are not publicly available, it can be challenging to find comparable sales prices. However, there are still several strategies you can employ to gather relevant information:
- Hire a professional appraiser: Consider hiring a licensed appraiser who has access to real estate databases and can provide an accurate assessment of your property’s value based on comparable sales. They have access to a wider range of data sources and can provide a detailed analysis.
- Seek public records: Other property-related information might be available through public records. Check with your local county or city government offices to see if you can access any relevant property transaction data, such as sale dates or property transfer records.
- Ask realtors: Sale prices are still available on the MLS in non-disclosure states, so a realtor may be able to help you get comparable sale prices. It’s important to have a trusted relationship with an agent though, or this may be a difficult request.
Comparable sales prices are one piece of evidence that can be helpful in protesting your appraised value. Other evidence can be helpful, such as any errors you can find in your assessment regarding number of rooms, square footage, land size, etc.
How Property Tax Protest Companies Can Help in Non-Disclosure States
This is where property tax protest companies like North Texas Property Tax Services can be helpful. These companies have developed sophisticated methods for estimating market values in the absence of public sale price data. They can also help you gather and present the most compelling evidence to support your claim for a lower assessment.
In conclusion, living in a non-disclosure state like Texas does present challenges for protesting property tax assessments. However, with the assistance of a dedicated property tax services company, you can effectively navigate these hurdles, potentially leading to significant savings on your property tax bill.
Learn more about NTPTS’ services in Collin, Denton, Dallas, and Tarrant counties.