I am going to purchase a foreclosed home in Orange County, CA. The home has an estimated market value of $550K. If I purchase the home for much less than that, let's say $400K, will my property tax be based on the purchase price or the market value? Assume the home will appraise at $550K.
I think if the buy price is lower than this means the house is worth on the current market what a buyer is willing to pay. Appraisal is based on what buyers are willing to pay for the property not an opinion of an appraiser.
You should get cheaper property taxes.
Rating: 3 out of 5