Has My Home’s Value Really Increased That Much?

Large increases in assessed value seen over the last ten years have confused many Texas homeowners. In Travis County, for example, property taxes have increased by 55% in the last decade.

But does a higher assessed value mean your home’s resale value has increased?

No. Even though the tax law's intends for property assessments to reflect “current market value” they often are not accurate.

But why? Different local appraisal districts use different methods to determine “current market value.” For instance, your appraisal district may use the “Rebuild Method.” This means the appraised value is an estimate of the cost to completely rebuild your home, not an estimate of the resale value.

Furthermore, local government appraisal districts may not have accurate data. While real estate agents often access large, private databases of sales data, local governments may be working off of outdated or inaccurate sales data.

So don’t be fooled, higher property assessments from your local appraisal district only mean higher taxes, not higher resales values.