Selling your house in Dallas? What the county appraisal district has to do with your sale

• In Texas, each county has an appraisal district that values property as of January 1. If your home is in Dallas County, that's the Dallas County appraisal district at dallascad.org.
• The district doesn't set tax rates or collect taxes. The city, county, school district and other taxing units set the rates; the county tax assessor-collector collects.
• The district's value isn't your sale price. It's a value for taxes. Your price comes from similar homes that sold near you and the condition of your home.
• At closing, the current year's taxes are prorated: you pay through closing day and the buyer pays from there. If the actual bill differs later, the parties adjust.
• Your homestead is yours. When you buy your next home, you apply for a new one with that county's appraisal district.

According to the Texas Comptroller, each county's appraisal district makes sure every property has a single value for tax purposes. That value is set as of January 1 each year, and whoever owns the property on that date owes that year's tax.

What the district does:

• Sets your home's value for taxes.
• Applies the exemptions you've applied for, like your homestead.
• Notifies you when your value goes up.
• Takes your protest if you disagree, which is heard by the appraisal review board. Per the Comptroller, that board begins hearing protests around May 15; confirm your own deadline with the district.

What the district doesn't do:

• It doesn't set tax rates. The city, county, school district and special districts decide those.
• It doesn't collect taxes. Many local governments contract with the county tax assessor-collector for that.
• It doesn't decide what your home sells for.

1. Before you list: look up your account. At dallascad.org, if your home is in Dallas County. You'll see the district's value, your exemptions and your home's details. If your home is in another county, the county is on your tax statement and your deed.
2. Check that the details are right. If the square footage, bedrooms or bathrooms don't match your home today, for example after an addition, you want to know before you list. A buyer may look at that account.
3. Your price is set separately. It comes from comparable homes that sold near you, your home's condition and what sets it apart. The district's value is one data point, not the price.
4. When you sign the contract: the TREC contract says the current year's taxes are prorated through the closing date, and the calculation can take into account exemption changes that affect that year.
5. At closing: you furnish certificates showing no delinquent taxes, and the title company handles the proration. If the actual bill for the year comes in different, the parties adjust.
6. Afterward: when you buy your next home, if it will be your residence, you apply for the homestead with that county's appraisal district. Nobody files it for you.

If you want to know what your home is really worth, not just for the district, get your home's real value at veronicayeary.com/home-value. No commitment.

A buyer, or the buyer's agent, may pull up your home's appraisal district account before making an offer. They're looking for two things: the home's details and the tax being paid today.

What they don't always realize is that the tax they see may reflect your exemptions. Once the home changes hands, their bill can look different. I've written about why the tax bill on the listing won't be the buyer's.

Here's what that means for you: when your account details are accurate, buyers trust the listing more. When something doesn't match, it's better to explain it up front than to let a buyer discover it and use it in negotiation.

If you're selling to buy, the appraisal district matters twice: once on the way out and once on the way in.

On the home you buy, the tax you'll actually pay depends on that home's value, the rates of every taxing unit on it, and the exemptions you qualify for. The Comptroller notes that if you buy after January 1, you may receive the residence homestead exemption for the rest of that year if the previous owner didn't receive it. You still have to apply.

So before you make an offer on your next home, look up its account at its own county's appraisal district, check which taxing units apply, and build your budget from your situation, not from the seller's bill.

• Using the district's value as your price. That value is for taxes, as of January 1. Your home sells for what it's worth, in its condition.
• Not checking your account before listing. Old or wrong details raise buyer questions right when you least want them.
• Assuming your homestead moves to your new home. It doesn't. You apply with the appraisal district in your new home's county.
• Forgetting the proration when you figure what you keep. The year's taxes through closing day come out of your sale. Count them in your number.
• Missing the protest deadline if you think your value is wrong and you'll still own the home for part of the year. Confirm the deadline with the district.

Picture a couple in Dallas who added a bedroom and a bathroom a few years ago. Now they want to sell and buy a bigger home.

Before listing, they check their appraisal district account and see the details still show the house as it was before the addition. They pull together the permits and paperwork from the project so they're ready when a buyer asks.

The price is set from comparable sales nearby and the home as it stands today, not from the district's value. At closing, the title company prorates the year's taxes, and after the move they apply for the homestead on their new home.

That's an example, not a real client. Your account details may be different.

• Your home's county, on your tax statement or deed.
• Your account at that county's appraisal district: value, exemptions and home details.
• Your latest tax statement, so you know what's paid and what isn't.
• Paperwork for any addition or remodel, in case the district's details don't show it.
• Your real walk-away number, with the tax proration included. Run it on the walk-away calculator.
• The Dallas area page, to see where to start.

On sales Veronica Yeary handles in Dallas and across Dallas-Fort Worth, the appraisal district account gets reviewed before the price is set.

Is the appraisal district value what my house is worth?

Not exactly. It's the value for taxes that the district sets as of January 1. Your sale price comes from comparable homes that sold nearby and your home's condition today.

Which appraisal district values my home in Dallas?

The one for the county your home is in. If it's in Dallas County, that's the Dallas County appraisal district at dallascad.org. Your county is on your tax statement and your deed.

Who pays property taxes for the year I sell?

Under the TREC contract, they're prorated through the closing date: you pay your share and the buyer pays theirs. If the actual amount differs once the statement arrives, the parties adjust afterward.

Does my homestead exemption transfer to my new home?

No. The owner applies for the homestead with the appraisal district in the county where the home is. When you buy your next home, you file a new application.

Do I owe tax on the profit when I sell my home?

Many owners can exclude the gain on the sale of their main home if they meet the IRS tests of owning and living in it two of the last five years. That's an IRS matter, not an appraisal district one. Your tax preparer confirms your case.

The district's value is one data point. Your home's real value, the one that tells you what you'll keep, is worked out separately and carefully.

Get your home's real value, no commitment: veronicayeary.com/home-value

Call or text 469-441-8890 · veronica@veronicayeary.com

Veronica Yeary, Realtor®, CRS, ABR, SRS, CIPS · All City Real Estate DFW · Dallas-Fort Worth. This isn't legal or tax advice: the appraisal district, your tax preparer and the title company confirm your case.