New laws could benefit homeowners in appraisal process

EDINBURG — Roman Garza Jr. is taking a wait-and-see approach to determine how new laws will affect the appraisal process.

The laws that went into effect Friday force appraisal districts to consider foreclosures in determining a property’s value, protect homeowners in developing areas from skyrocketing appraisals and allow the state Legislature to adopt uniform appraisal standards in the future.

Garza, a McAllen-based senior property tax consultant who protests valuations on behalf of homeowners, said the first two laws in particular could have a noticeable impact in Hidalgo County, a fast-developing area with bundles of foreclosures. But like anything else, he said he wants to see the laws in action before he declares them a taxpayer’s savior.

"(Appraisal districts) try to get value from wherever they can, however they can," said Garza, who worked for the Hidalgo County Appraisal District before moving into consulting. "Sometimes they’re fair and sometimes they’re not, so it depends on how they interpret the laws."

Six laws that govern how each of the state’s appraisal districts value property are among 27 new laws that went into effect Friday.

Gov. Rick Perry said in a statement this week that the laws instituting reforms to the appraisal process provide greater protection for property owners by adding transparency and fairness to the system.

Three new laws will impose limits on what is considered a considerable sale for appraisal districts, create an expedited arbitration process and require substantial evidence to increase an appraisal after an appeal, the governor’s office says. The changes will improve the fairness and accuracy of the appraisal process and increase the oversight of appraisal districts through establishment of a pilot program that allows appeals to be heard by a state office.

Homeowners could see a noticeable change in their values from two other bills.

House Bill 1038 allows appraisers to consider all comparable properties when appraising a home, including those sold at foreclosure or one that have decreased in value.

Before the law, appraisal districts couldn’t consider foreclosures when valuing homes because they were considered sales under duress, said Rolando Garza, the chief appraiser for the Hidalgo County Appraisal District. Foreclosures sold at bargain prices could drive down the value of neighboring homes.

"It’s going to be beneficial for homeowners," Rolando Garza said. "We can consider (foreclosures) now and we will."

Another law passed by voters in November authorizes appraisers to set a residential property’s value solely on its value as a homestead, not the "highest and best use" in areas without zoning restrictions.

Homes along major highways on in fast-developing areas are usually valued on their potential as commercial development, the chief appraiser said. A residence on multiple acres may instead be valued on its potential as a gas station or a big box retailer.

Under the new law, the home can only be considered for its value as a residence as long as it is claimed as a homestead.

"It will be very beneficial to homeowners that have their homestead in a developing area," Rolando Garza said.