Background
Situated in East Austin, the subject property comprises two auto repair garages. For tax year 2023. Travis Central Appraisal District (CAD) raised its value to $4,471,766, a substantial 65% increase from its 2022 value of $2,717,234.
Condition Issues
The property owner documented significant condition issues with photographic evidence:
- Drainage Issue: The property suffers from a drainage problem resulting in substantial water pooling. Addressing this requires cutting and repairing approximately 100 feet of concrete.
- Foundation Issues: Constructed in the 1960s, the structures exhibit considerable deterioration, including large cracks in the foundation and flooring due to ground settling. A quote received by the property owner estimated the foundation repair cost at $300,000.
- Garage Doors: Improper installation of garage doors has led to water leakage into the garages.
Ownwell presented documented photographic evidence of these issues and advocated for greater depreciation of the improvements.
Vacancy
Partly due to its condition, the property struggled with low occupancy. In the first half of 2022, it was entirely vacant, and in the second half, it operated at only 60% occupancy. This low occupancy affected its earning potential and subsequently its market value.
Equity
Under the Texas Constitution, property must be taxed equitably with similar properties in the same market area. Leveraging Ownwell's proprietary technology, agents conducted a comprehensive equity analysis to identify comparable properties nearby assessed below the subject. Three comparables within ⅓ of a mile were selected, indicating a value of approximately $3,000,000.
Results
Leveraging their strong working relationship with the Travis County Appraisal District, Ownwell engaged in an informal hearing. Presenting the evidence and negotiating with the appraiser, they reached an agreement on a final assessed value of $3.4 million, reflecting a 24% reduction and yielding a total tax savings of $21,167.
