Tax Doc: Does It Help Lower My Value if We Got $$ Back From the Seller?

Dear Tax Doc: Hey!  I need a quick opinion if you have a second.  Our DCAD appraisal
came in about $10,000 higher than last year ($188 to $197).  It hadn’t
gone up since 2008.  We paid $195 for the house last March with a $5k
back from seller (so we really paid $190 but the sales price was
$195).  Its listed in “good” condition.  Should we protest?  I’m not
sure I want to argue its worse than “good” condition and since we paid
less than the appraised value, I’m not sure how I would protest.

Absolutely you should protest! You don’t need to argue based on condition. Take in your closing statement showing the 195k and the 5k back from the seller.  Wham Bam, you are done! This should be a lay-down case as well.