Frenzied housing market to push appraisals skyward; audit finds McGregor ISD homes undervalued > Waco Tribune-Herald

The McLennan County housing market has not slackened a year into the pandemic, and homeowners are about to find out growth in appraisal values has not slowed.

The McLennan County Appraisal District will mail out residential appraisal notices April 5, and officials estimate homeowners will see an increase of 12% to 15%. The increase will be even more for homeowners in McGregor Independent School District, where state officials determined property values have been appraised at too much less than market value.

McLennan County Appraisal District Chief Appraiser Joe Don Bobbitt attributes the increases across the county to high housing prices and low housing inventory in what is increasingly a seller’s market.

“We are going to expect a lot of protests this year,” Bobbitt said. “We realize the economic impact it has on the taxpayers and the hardships they are going through. But state law does not allow us to take into account any economic hardship, only to base appraisals on the real estate market.”

Deadlines for appraisal notices on properties that do not serve as the owner’s primary residence are a month later than for primary residences.

Homeowners in McGregor ISD on average can figure in an additional 5% on top of the 12% to 15% increase, Bobbitt said, because of a state audit by the Texas Comptroller’s Property Tax Assistance Division.

Comparing a sample of appraised values with actual home sale prices, state auditors found the appraisal district’s 2020 values undervalued McGregor ISD homes by more than 5%. That is despite an average 12.1% increase in appraisals in 2020.

The comptroller will conduct a follow-up property value study in McGregor ISD to verify tax appraisals are in line with market values for 2021. If not, the district risks losing state education funds, Bobbitt said.

“Right now, McGregor ISD is in what is called a grace period because our values were too low based on home sales, and the comptroller’s office will come back in next year and do a study on McGregor ISD only,” Bobbitt said.

He said the appraisal district’s efforts to keep up with the housing market were dealt a blow in 2018, when it lost access to a database where real estate agents share sales data.

“People tend to only volunteer sales prices when the district is higher than the purchase price,” Bobbitt said.

The appraisal district, which is required to appraise homes at market value, has now gained access to sales information through a state contract, and Bobbitt said current sales prices are about 15% above last year’s appraised values.

APPRAISALS
McGregor home appraisals will see steeper increases than average for McLennan County this year because a state audit found they had been set too low.

Rod Aydelotte, Tribune-Herald
The current lack of inventory of homes for sale is driving up sales prices, Bobbitt said. Even some homes built in the 1940s are selling for $100 a square foot, compared to recent years when they sold for about $80 a square foot, he said.

McGregor ISD Superintendent James Lenamon said he has no doubt McGregor’s housing supply is razor-thin.

APPRAISALS
McGregor home appraisals will see steeper increases than average for McLennan County this year because a state audit found they had been set too low.

Rod Aydelotte, Tribune-Herald
His own daughter and son-in-law struggled to find housing when they moved back to McLennan County from Amarillo, finally setting their sights on a house in The Parks, the only new subdivision in McGregor ISD. The school district’s enrollment has grown from 1,100 students when Lenamon came to McGregor in 2002 to about 1,550 now.

“It’s something we’ve talked about for years, the need for more housing,” he said. “Within the city proper, the lots are full. … I’m going to tell you it’s because we have a great school district. SpaceX is growing, and those employees with families want to be close. The westward growth of Waco has made its way to McGregor.”

McGregor’s ISD’s average home value in 2020 was $124,336, according to the appraisal district, up 12.1% from the 2019 average of $110,871.

https://wacotrib.com/news/local/govt-and-politics/frenzied-housing-market-to-push-appraisals-skyward-audit-finds-mcgregor-isd-homes-undervalued/article_29362baa-8ce2-11eb-899b-9f93e3b3e264.html

Some articles from around the MLHA Nation you might like...

0 Comments

Submit a Comment

Getting More Local

Setting Up Shop In Your Area Soon!

Coming Soon!

My Local Home Value

MARKETPLACE

Interactive and Intuitive Digital Magazine focused on the housing markets and home values of Your Area.

Sample is of 

My Seattle
Home Value
Marketplace

Coming Soon!

Vounce HOME VALUE

MARKETPLACE

Interactive and Intuitive Digital Magazine focused on the housing markets and home values of Your Area.

Sample is of 

My Seattle
Home Value
Marketplace

Coming Soon!

My Local Home Value

MARKETPLACE

Interactive and Intuitive Digital Magazine focused on the housing markets and home values of the area you live.

Sample is of

My Seattle
Home Value
Marketplace

Appraiser Interview Guide

We have a combined 70+ years of appraisal experience. It makes us happy to share this with you. Let's jump right in then!

1. The first thing is a lot like many things you might get ready to do is to get your ducks in a row, and have a game plan for setting up your appraisal. And of course  you can't know everything about everything so the right appraiser will provide those answers, and you will get the best results.

2. Have your property information readily available when talking with the appraiser...

Get the complete Appraiser Interview Guide delivered directly to your email box in a readable and downloadable format, there's no cost.

Locations By State

We have all Current Certified Residential and Licenced Appraisers in the country. You can simply get started anytime.
We have also setup in many cities and metro areas as well as a centalized base for many rural locations. We will setup more locations each week.

Washington  |  Oregon  |  California  |  Texas  |  New York  |  Illinois  |  Florida  |  Pennsylvania  |  Washington DC

Locations By State

We have all Current Certified Residential and Licenced Appraisers in the country. You can simply get started anytime.
We have also setup in many cities and metro areas as well as a centalized base for many rural locations. We will setup more locations each week.

Washington  |  Oregon  |  California  |  Texas  |  New York  |  Illinois  |  Florida  |  Pennsylvania  |  Washington DC

Home Office

Portland, OR

Phone

503 781-0448

Contact Us

Copyright ©2021 • My Local Home Appraiser

Copyright ©2021 • My Local Home Appraiser

Phone: (503) 349-3765  Home Office: Portland, OR  |  Email: contact@mylocalhomeappraiser.com

  Email: contact@mylocalhomeappraiser.com