Will the purchase price affect the tax appraisal value?

Hi Michael,
In short, it could but not necessarily. The issue is that if they increase your tax assesed value, you will have little ammunition to dispute it. Typically the best way to dispute assesed valued is to show that similar property sold for less.
The appraisal district is not that well staffed, it may take them a few years to catch on with your sales price. You might get lucky.
Best
francois@cozy-homes.com

Yes it could. The appraisal district keeps track of sales prices and updates market values accordingly. There's really not much you can do to fight that because the market value is determined by what someone is willing to pay for a property & if that is what you were willing to pay that is what they will tax you on.

Michael, GREAT questions and in short the answer is: it could! First of all I would NEVER recommend paying $400,000 for a house that appraised for $255,000 (and that is the realtor and co-owner of an appraisal company speaking). This would mean you'd be coming to closing with an additional $145,000 (on top of regular down payment and closing costs) just the purchase this home! And, also means that you have a very good chance of loosing money when you sale this home. Second, to answer your question, if the taxing authority conducts an in-depth review of the property values in your neighborhood they will have a case to assess at the purchase price since you were a willing buyer that paid that amount although you also have the appraisal that came up short. Hope this helps and feel free to contact me should you have any home purchase questions! Darby Grimmett Keller Williams darby@darbygrimmett.com 936-827-9217