Your Home Is Probably Worth $125K Over Tax Value!

Posted by Eric Peterson on Thursday, April 29th, 2021 at 10:00am.

 

The Williamson County Appraisal District just mailed out the Notice of Appraised Value for 2021. Look for your notice in the mailbox or search your address on the WCAD website.

Prepare yourself before you open the envelope because you are going to be shocked by the value. Especially for those who own rental properties with no Homestead Cap you will see huge jumps in the value you will pay taxes on this year.

When you see your value if you think to yourself “If someone would pay that much for my home, I would sell it” let me tell you something even more surprising…Your tax value is probably $125,000 or more below what your home can sell for in today’s market. That’s a conservative estimate because there’s a home we will be selling that I expect will sell for close to $300,000 over the tax value. If you’d like a better idea of what your home can sell for just get in touch with us for a quick estimate.

Why Are Prices Up?

Since December we are seeing 2 types of buyers; local and people relocating from around the country, especially California. Recent studies have shown relocation buyers have a home buying budget that is 32% higher than local buyers.

That’s something we have been feeling with our listings. Often, we are seeing the best offers are being made by out of area buyers who have the higher budget to cover appraisal shortages between the sales price and appraised value.

Something worth mentioning is it is possible to sell your home for more than the appraised value. If you are speaking with an agent without much experience, they may be overly concerned about what your home will appraise for which will result in you accepting an offer that is too low.

Interest Rates Already Ticking Up

Everyone has been expecting interest rates to rise once things go back to normal but we have already seen rates jump to over 3%.

For most of us a 30 year fixed rate mortgage anywhere in the 3% range is still a great deal but for someone who has been shopping for a home and doing all their calculations based on 2.5% it may make a difference.

Historically we have seen the real estate market to be very sensitive to rising interest rates. The rate of mortgage applications has started to slow and that is an important statistic to follow. So far, we haven’t seen a slowdown in the real estate market. If anything, buyers may be more motivated to buy before rates go up even more. But, what will happen when rates hit 4% or 4.5%? It’s going to get interesting.

If You Are In Crisis Call For A 2nd Opinion Before Selling Off Market

Returning to normal isn’t going to mean the same thing to everyone. If you look at the stock market or the IKEA parking lot you would have the impression everyone is doing great.

We know that isn’t true. If you are in some type of crisis and need to sell your home BEFORE you sell to one of the low-ball house buying companies contact us for a no-pressure 2nd opinion. We can give you a cash offer for your home and still let you list the house to take advantage of the market. That way you can sleep at night knowing your worst case scenario but still be able to accept a better offer on the open market.

Whenever you are ready to talk about your home call us at 512-791-7473 .

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