Renovating your home or commercial property is usually a good thing; it improves livability, increases value, and may even boost rental income. However, it may lead you to consider a property tax appeal after renovation when it comes to your property tax assessment, as recent renovations can be a double-edged sword. At TexasPVP, we help you navigate how improvements affect your valuation and determine the smartest way to protest.
How Renovations Affect Property Valuation
The county appraisal district (CAD) is tasked with assigning a market value to your property each year. This value reflects what your property would likely sell for on the open market. When you make renovations, especially significant ones, the CAD may raise your assessed value accordingly. Therefore, a property tax appeal after renovation might be necessary.
Examples of Renovations That Often Trigger Higher Assessments:
- Major kitchen or bathroom remodels
- Room additions or garage conversions
- Structural changes, like removing walls or finishing an attic
- New roofing, HVAC systems, or energy-efficient upgrades
- Outdoor improvements like pools or patios
These upgrades can signal to the CAD that your property is worth more, even if they don’t necessarily increase the resale value by the same amount.
When Renovations Might Hurt Your Appeal
If you’ve recently renovated and your appraisal increased, protesting that new value can be more difficult. Here’s why:
- Documentation favors the CAD: Building permits and visible changes from public records or satellite images support the idea that your property is worth more.
- Market comps reflect higher value: If nearby similar properties haven’t been updated, yours may be considered superior even if you didn’t intend to increase value significantly.
- Reduced sympathy from ARB: Appraisal Review Boards may be less inclined to lower values if they believe the improvements justify the increase.
When Renovations Don’t Automatically Hurt Your Appeal
Not all improvements result in a higher value or hurt your protest case. Some scenarios may actually help your appeal:
- Necessary repairs, not upgrades: Replacing an old roof or fixing plumbing may maintain rather than increase value.
- Unfinished or poor-quality renovations: If work is incomplete or low quality, you may argue that your property isn’t as valuable as the CAD assumes.
- Renovation timing: If renovations occurred after the January 1 valuation date, they shouldn’t be considered in that year’s appraisal. In such cases, a property tax appeal after renovation can be advantageous.
How TexasPVP Helps You Make the Right Case
We know how to frame your improvements in a way that supports a fair and accurate value. Our experts:
- Analyze which upgrades are likely to impact your valuation
- Gather evidence to show whether the renovations increased your market value
- Use equity comparisons to prove your property is being unfairly assessed
- Present before-and-after photos, contractor estimates, and permits when they help or explain why they shouldn’t matter
Common Myths About Renovations and Property Taxes
- “If I renovate, my taxes always go up” – Not always. Routine maintenance or repairs often don’t impact assessed value.
- “The CAD won’t find out” – They might. Appraisers use aerial photography, building permits, and real estate listings.
- “Renovations make it impossible to win a protest” – False. With the right strategy and evidence, you can still achieve a reduction, especially with a well-prepared property tax appeal after renovation.
Best Practices After Renovating
If you plan to protest your taxes after a renovation:
- Keep detailed records of what was done and why
- Differentiate between repairs and luxury upgrades
- Consider timing improvements around the valuation date (January 1)
- Consult TexasPVP to evaluate your property tax appeal after renovation case before filing
Final Thoughts
Renovations can be exciting, but they can also complicate your property tax appeal after renovation. Knowing how and when improvements affect your assessment is crucial. At TexasPVP, we take a tailored approach to help you present the strongest possible case, whether you’re a homeowner, landlord, or commercial property investor.
If your recent renovation caused your tax bill to skyrocket, don’t wait. Let TexasPVP review your property and help you fight back.
