So I just bought another house. My RE agent priced it based on comps in the area (this wasn't an arm's length transaction) and I agreed with the assessment. The seller did as well, so the offer was made and accepted. The purchase price was $10k less than county tax value. I had planned on appealing tax value once I actually owned the place and providing comps to back me up. The bank of course required an appraisal and I got that back. The appraisal came back $30k higher than purchase price. I had hoped to use the appraisal as well in the appeal. Obviously that won't happen now and the whole appeal plan is probably shot now.

I guess it's a good problem to have. I have quite a bit of instant equity (on paper). I honestly do not think I can convert this paper equity to cash by reselling though. I firmly believe it will just sit there on the market forever. Guess my only option now is to collect the rent and pay the higher tax bill every year.

We have been faced many times with higher appraisals then what tax value is.

ALWAYS appeal. You won't be submitting YOUR appraisal so keep it to yourself and find those 3 or 4 that have lesser value.

Here in GA we are allowed to use foreclosed properties as part of the values. That made it relatively easy to find low value comps. We USED EVERYONE we could.

Agree plenty. I think the appraiser picked owner occupied homes. Well taken care of, manicured lawns, etc. The agent was comparing investment properties. Although they are nice homes, they may or may not be as well cared for as the owner occupied houses.

Is n't that what Trump supposedly did wrong, valuing his properties high when seeking loans but low when appealing taxes?? Ha ha. I laugh because that is the most normal practice for anyone who ever owned real estate.

Also, the appraisal came in high? I have never seen an appraisal come in higher than the purchase price.

I've had all sorts of issues with Bank appraisals, Private appraisals and the County Tax Assessor appraisals. They seem to always work against me. So it's always going to be a fight.

Appraisals are just estimates of value. Real value of the house is what you paid for it. Don't worry about your appraisals. Take your closing statement. That's the value of the house no matter what anything else says. Your transaction will be the only document that isn't a best guess estimate of value.

This is the only time in your life you'll have proof of value, the sales price. All other challenges will only be based on estimates.

We've challenged our taxes, usually using the argument, "We paid $x for this house last year. That's the definition of market value. But you're valuation has it at $y. We're challenging your numbers."

Most recently, our houses have generally been tax foreclosures, so the price is determined by whoever shows up to bid. Occasionally, we'll use the argument on a house that's sold on the open market.

The appraiser will then present their own comps--- from a city, like, 30 miles away, with a totally different economy and a totally different population.

I would be fine if they used market value. The problem I have is this was not an arm's length transaction. I purchased it from a family member. The county will most likely NOT take sales price in this situation. I do not believe it is worth current tax value and neither did my family member. That's why they agreed to the lower sales price (I had been telling them to appeal the value for years). Now that the appraisal came in even higher, it will worthless to plan on using that.

As a side note, I have had plenty of transactions where the bank appraisal came in higher than the purchase price. It's less common since the mess in 2008, but I've still had it happen. I used to be able to use that paper equity to purchase another house, but no longer.