Tax Value?

[FLtoNC]

If I built a new home, would I expect next year's tax value to be the same or more than the purchase price. In this situation, how would tax value be determined by appreciation (i.e. builder is selling same home for $50K more than I paid and whatever upgrades I have done in the home since purchasing)?

[GDMS]

What if your tax value just came in at $560,000 but the market value (from a real estate agent) is $400,000. Most recent sale in neighborhood was a short sale at $323,000. Bought the house 12 years ago and borrowed $150,000 against it hoping to re-coup it by appreciation. Then we were talked into an interest only loan. THEREFORE, we need to sell for $550,000 just to break even before fees. I think this is the true definition of (pardon me) screwing oneself to the wall. Ya think?

If we sold it for $400,000, how do they handle the negative equity? Oh, did I mention our credit scores are in the toilet due to other stupid financial neglect? Probably can't qualify for refinancing of the house or the negative equity. Enough life lessons learned. Thank you.