I bought a house in Houston in 2007 and tried to sell in 2011. The buyer's title company discovered 3 city of Houston easements, 2 inactive and 1 active. The one active is a 10 foot wide storm sewer (20 foot wide easement) running directly underneath the house. The mortgage company would not lend the money and the contract fell through.
The sale that fell through was for $209k. An appraisal was done to determine the claim payout with my title company. The appraiser determined that the property was worth $222k without the easement and $55,500 (25%) with the easement.
The appraisal district which sets property values every year continues to raise my value and I have to protest it down every year. This includes meeting with the appraisal district appraiser. If no agreement, then you go before a 3 person neutral board who weighs the evidence. These are the values set AFTER I protested (they were higher before):
2010 - $170k
2011 (after easement discovered) - $140k
2012 - $112k
2013 - $122k
2014 - $200k
2015 - $200k
2016 - $200k
2017 - $230k
Market value without the easement today is probably $325k. If you are unhappy with the value after protesting, you may enter into binding arbitration with the appraisal district. You must deposit $500 and if the arbitrator's value is closer to your value, then you get that money back. If not, you lose the money.
My question is, should I enter binding arbitration? Obviously I couldn't convince the appraisal district appraiser or the 3 person board. But I know that it couldn't get $209k on the open market (with a loan at least) so how would it get $230k? I also have the original appraisal that says 25% value, but the board did not buy that.
If I go to binding arbitration, what value should I go with? Too low and I lose my $500. Too high and I may leave some property tax money.
Thanks for any help.
The sale that fell through was for $209k. An appraisal was done to determine the claim payout with my title company. The appraiser determined that the property was worth $222k without the easement and $55,500 (25%) with the easement.
The appraisal district which sets property values every year continues to raise my value and I have to protest it down every year. This includes meeting with the appraisal district appraiser. If no agreement, then you go before a 3 person neutral board who weighs the evidence. These are the values set AFTER I protested (they were higher before):
2010 - $170k
2011 (after easement discovered) - $140k
2012 - $112k
2013 - $122k
2014 - $200k
2015 - $200k
2016 - $200k
2017 - $230k
Market value without the easement today is probably $325k. If you are unhappy with the value after protesting, you may enter into binding arbitration with the appraisal district. You must deposit $500 and if the arbitrator's value is closer to your value, then you get that money back. If not, you lose the money.
My question is, should I enter binding arbitration? Obviously I couldn't convince the appraisal district appraiser or the 3 person board. But I know that it couldn't get $209k on the open market (with a loan at least) so how would it get $230k? I also have the original appraisal that says 25% value, but the board did not buy that.
If I go to binding arbitration, what value should I go with? Too low and I lose my $500. Too high and I may leave some property tax money.
Thanks for any help.