The Dallas Central Appraisal District and I have very different opinions on what is considered “desirable,” it seems.
Last year I began to notice a change in how DCAD valued certain multi-family and high-rise condo properties. Specifically, I noticed that The Warrington units of the same floor plan and judged as being in the same condition were almost always valued the same. On the surface, this seems logical, but is it?
First, a little background.
DCAD categorizes homes by what they call “desirability” but might as well be called “condition.” Unfortunately “desire” seems more in line with location than a structure’s physical repair. There are eight buckets of desirability ranging from undesirable to excellent. During this year’s annual property tax challenge, I was told that single-family homes utilize all eight while condos use fewer. For example, for my Athena floor plan, there are only four categories used – Average, Good, Very Good, and Excellent.
Think of desirability as a multiplier in the assessed valuation equation. If “average” equals one, then those properties rated lower get a base value multiplied by something less than one. The opposite math for those rated above “average” being multiplied by something more than one.