Real Estate Information Archive

The season is upon us - let the tax protests begin!  So the dreaded letter arrived; the good news, the market is up; the bad news, your local appraiser knows it!

So when your tax assessed value jumps the full 10%, what comes next?  First don't panic, second review our helpful tips on determining if you should protest.

1. Key things to keep in mind
   1. There are generally no costs in contesting your tax value (if you do so on your own), 
   2. There is no separate penalty for protesting your taxes but not succeeding,
   3. Most counties allow for an "informal review" & even encourage such a review prior to an ARB (Appraisal Review Board) hearing,
   4. County procedures differ for the request of a review or protest (some allow mail or electronic methods, others require a scheduled appointment conducted in person),
   5. Like most "government" services, there is a processes that appears mush more complex than it actually is,
   6. Your fellow citizens & residents serve as part of the final Appraisal Review Board,
   7. You have a right to review the information that the appraisal office used in determining your value.
2. Thoroughly review your Notice of Appraised Value
   1. Have you taken full advantage of tax exceptions for which you qualify (Homestead if owned before Jan 1st, Over 65, etc),
   2. Is the information on your appraisal about your home correct?,
   3. is the information on the CAD's (Central Appraisal District) website correct (bedrooms, SqFt, etc)
   4. Did your appraised value increase greater than 10%, if you have a homestead exemption & no new improvements.
3. Understand what you can protest
   1. Proposed value,
   2. Denied exemptions for which you believe you qualify,
   3. Incorrect information regarding the scope or use of your property,
   4. Incorrect owner,
   5. Incorrect taxing units (authorities),
   6. Defects of the home or property that would otherwise affect the value.
4. Understand how value is derived in Texas for the property tax assessed value
   1. Appraisers look for homes that sold closest to Jan 1st in the tax year assessed
   2. Homes that are closest in size, year built, location, age, & construction style are given the greatest weight.
5. Be Prepared - Bring organized data whether you are meeting "informally" with an appraiser or for an ARB hearing
   1. If you purchased or refinanced your home recently (especially close to Jan 1st) and your tax assessed value exceeds your sales price, bring your signed HUD-1 &/or a copy of the appraisal conducted for your mortgage
   2. Bring Sales Comps for comparable properties (see 4.2) & include: address, sale date, sale price, supporting docs, names of owners, MLS information, etc.
   3. Proof of defects of your home, functional or economic obsolescence
6. Know your Dates, Deadlines, & Procedures
   1. File on-time or you may miss your chance
   2. In most cases your protest must be filed by May 31st (*CHECK with your CAD!)
7. READ YOUR COUNTY's PROTEST INFORMATION CAREFULLY - if you don't understand something, give them a call!
   1. Denton CAD (click for info)
   2. Dallas CAD (click for info)
   3. Collin CAD (click for info)

 - Good Luck & please let me know if you have any questions - Christie Cannon

* Be sure to check with a qualified tax agent & your county's central appraisal district for specific procedures & questions.

The Bottom Line:

• Freddie Mac Primary Mortgage Market Survey reports the 30-year fixed rate at 3.7%.
• Freddie Mac's projection for Q2 2016 - interest rates will be 4.7%.
• The Home Price Expectation Survey predicts prices (national averages) will appreciate by 4.4% during this same time

After the housing market bust we experienced across the country in 2008, many experts have been quick to warn that a new bubble may be forming in some areas.

One particular example of this is a recent article pointing toward the California Bay Area’s price gains over the last 18 months.

The quickest and easiest way to show how far we’ve come and how far we still need to go in regards to the ‘Peak’ is to share CoreLogic’s Price & Time Since Peak figures, used to create the map below.

Even with the high performance of prices in the Bay Area, the state of California as a whole is still -14.4% below their Peak, experienced in May of 2006.

The biggest challenge facing the housing market’s recovery right now is the lack of inventory available for sale. Prices are determined by supply and demand. Right now buyer demand is out-pacing seller supply, across many price ranges, driving prices up.

Bottom Line

Traditionally the Spring months have been the most popular dates sellers choose to list their homes. With additional inventory coming to market soon, meet with a professional in your local market to evaluate your best course of action.

The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) released their latest Existing Home Sales Report this week.

Inventory Levels & Demand

Amidst reporting on the fact that sales of existing homes rose 1.2% from January, and outpaced year-over-year figures for the fifth consecutive month, was the news that total unsold housing inventory is at 4.6-month supply.

This is down 0.5% from last February and remains below the 6 months that is needed for a historically normal market.

Consumer confidence is at the highest level in over a decade. Pair that with interest rates still under 4%, new programs available for down payments as low as 3%, and you have an attractive market for buyers.

Buyer demand for housing remains twice as high as this time last year.

Prices Rising

February marked the 36th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $202,600 (up 7.5% from 2014).

So What Does This Mean?

The chart below shows the impact that inventory levels have on home prices.

NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:

"Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices. Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before (interest) rates rise."

Bottom Line

If you are debating putting your home on the market this year, now may be the time. The amount of buyers ready and willing to make a purchase is at the highest level in years. Contact a local professional in your area to get the process started

A recent Bloomberg Business article reports that both Lowes & Home Depot experienced fourth quarter profits that beat revenue projections by the most in six quarters. So what does that mean to the housing market?

Consumer Confidence

Lowe’s Chief Executive Officer Robert Niblock said,

“Consumers are feeling better about their jobs, their wages and certainly feeling better about the value of their home, they are re-engaging in projects that they have put off.”

Sales to professional contractors have increased significantly as well, and were a driving factor in the quarter. Home Depot’s Chief Financial Officer Carol Tome calls this a “sign of health. If they are putting more items in their basket, it means they have work coming at them.”

Home Values Rising

In a quarterly consumer survey conducted by Lowe’s since 2007, the percentage of respondents who said that the value of their home is rising increased to its highest value ever, at 50%.

Whether Americans are finally adding that man-cave they’ve always wanted, or renovating a master suite, an increased confidence in the value of one’s home often sparks homeowners to invest in big-ticket projects.

The National Association of Realtors (NAR) reports that the median price of an existing home (for all housing types) rose year-over-year for the 35th consecutive month.

Not all who are renovating are planning on staying in their home. The Demand Institute reports that “nearly half of American households plan to move at some point in the future.”

For those who are planning on listing their home this spring, spending the time and money needed to update that 1950’s bathroom or kitchen can fetch higher prices in today’s market.

Bottom Line

Meeting with a local real estate professional can give you insight into the small (or big) improvements your home could use to draw the highest price and return on investment this spring.  Have Questions about our local market? - Please give me a call - Christie Cannon - 469-951-9588

Wondering the latest & greatest in Frisco's development future? - The Frisco Economic Development Council's own Jim Gandy recently presented to the GroupOne Real Estate Network (a network of some of Frisco's top producing real estate proffesionals). Click the link HERE to see some of Frisco's latest, greatest, & upcoming!  

Key Stats & Points:

• Frisco's project build out population is expected at 350,000!
• Current average home values are at $317,560
• Current Frisco ISD enrollment is 49,287.
• Frisco experienced 307% growth since 2000.

The Colony TX scored a huge commercial win a few years back, the culmination of which is come due.  The corner-stone of this development plan is ambitious project - Grandscape.  Billed as one of the largest & most unique mixed use developments in the nation, this complex boasts 400+ acres, 3.9 million sqft of retail space, entertainment, & dining.  It is in a prime location to serve The Colony, Castle Hills, Plano, Frisco, & more -not to mention the 306k cars per day projected to cruise past this development in 2015!  The driving force behind this development is the massive Nebraska Furniture Mart of Texas. With Nebraska Furniture Mart's grand opening almost upon us.. it will be amazing to see how this project advances! - Have Questions?  Please call Christie Cannon - 469-951-9588 

Everything is bigger in TX.... to the tune of 1.8+ million square feet if you are the Nebraska Furniture Mart of Texas.  This new shopping experience is part of a rejuvination of The Colony & Castle Hills areas, which includes new & updated projects like Grandscape.  The cities newest commercial anchor, Nebraska Furniture Mart will be making their grand opening in the next month, complete with an appearance by Omaha's very own Warren Buffett.  They are currently projecting over $1Bn in annual sales!  Nebraska Furniture Mart is already ramping up the advertisements & a few giveaways to start the buzz.  

Check out a few sneak peeks below! - Have Questions please feel free to give me a call! - Christie Cannon

The long time buzz appears to have come true... Frisco's own Brinkmann Ranch (the original Southfork Ranch from the Dallas TV show) has sold off another 330+ acres of their prime real estate.  It appears that Landon Homes (most recently of Richwoods, Frisco fame) may be looking to develop another gated community here in East Frisco.  As one of the last large land "hold-outs" here in Frisco it will be shocking to many to see another part of this icon finally in the hands of developers.  With current low inventory levels, the continued sharp rise in land prices, and the expansion of Main st (east of Preston) it was only a matter of time. While this isn't the first parcel Brinkmann has sold, nor is it the iconic corner property (part of the original, smaller ranch) at Main & Preston - it is still an interesting development bound to capture the interest of many Frisco residents.  

For those who may be short on their Frisco TX history, or the history of the Brinkmann Ranch - it is owned by Baxter Brinkmann, the founder, owner & CEO of Brinkmann Corporation (grills, outdoor recreational equipment, & more). The Ranch is a true working ranch and had held well over 5500 acres. The ranch runs a Black Angus & Longhorn cattle operation, as well as breeding program which has garned world recognition & offered multiple award winning horses.   Prior to Brinkmann's ownership, the ranch was know as the Cloyce Box Ranch (Box Ranch).  To the general US population, the Cloyce Box Ranch became know as "Southfork" in the original season of Dallas.  After the first production season, the show was moved (at the Box family's request) off the property, where it settled to the west in Parker at the now more recognized Southfork location (previously called Duncan Acres).  The Cloyce Box ranch became not only an icon in Frisco, but became a symbol of the "bigger in Texas" attitude that the nation came to assume of a Dallas cattleman. The site offered the perfect setting for local & national events.  The Ranch (under both Brinkmann & Box ownership) hosted the famous Cattle Baron's Ball on several occasions.  Cloyce Box, a former NFL player turned oil-man & entrepreneur, was as interesting a character as the ranch itself.  Cloyce's son Doug Box wrote a very well regarded book, "Cutter Frisco", which chronicled life growing up on the ranch.  Tragically, in 1987 the original & grand home (storied to have built in the 1940's to replicate Scarlett O'Hara's plantation home) caught fire & burned down - you can watch news reel footage on the internet about the tragedy. Sadly, Mr.Cloyce Box passed away prior to being able to reconstruct the home (hence the structure you still see standing as a frame today).  Amazingly, the original staircase of the house survived the fire & can be found, along with an amazing exhibit, at the Frisco Heritage Museum.  

Moving forward it will be interesting to see how the large remaining tracts are treated.  Long has been an expressed desire to see a large corporate campus, but with the competing interest of rising home prices & land values - only Mr. Brinkmann & the future buyer may know for sure!

One thing is for sure, the "original Dallas" is (or perhaps soon to be "was") truly a Frisco original.

- Have some history to add? Have some history to correct? - We are happy to hear from you.  - Kevin Cannon - 214-714-4032 

The housing market has taken a great turn toward recovery over the last few years. The opinions of the American public toward real estate took longer to recover, until recently.

For the first time since 2006, Americans have an overall positive view of real estate, giving the industry a 12% positive ranking in a Gallup poll.

Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from "very positive" to "very negative." The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.

Americans’ view of the real estate industry worsened from 2003 to the -40% plummet of 2008.  Gallup offers some insight into the reason for decline:

Prices Dropped

“In late 2006, real estate prices in the U.S. began falling rapidly, and continued to drop. Many homeowners saw their home values plummet, likely contributing to real estate's image taking a hard hit.”

Housing Bubble

“The large drops in the positive images of banking and real estate in 2008 and 2009 reflect both industries' close ties to the recession, which was precipitated in large part because of the mortgage-related housing bubble.”

Bottom Line

“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”

- Have Questions?  Call Christie - 469-951-9588