I know Glenn and the Magenta group very well. I have sat in when he has spoken with his investors. Glenn told them that they could lose as well as win. They knew full well what they were getting into and they chose to gamble. He didn't break into their houses at night and steal their savings. They lost and he lost. He didn't lose on purpose, regardless of what you may think, he walked away with empty pockets. He went through hell trying to keep it together for the investors and he's probably had to leave the country and the area where he grew up to avoid people like you who think they know everything when they know nothing. Loads of people lost out when the property price climb faltered. What Glenn tried to do was pool various investors together so they could make a higher percentage gain. You can't gamble in a casino and then blame the casino boss when you lose. Life is life. You win some and you lose some. You say that Glenn 'won't get away with it'. What exactly do you intend to do? What makes YOU the judge and jury? Why not put your name on here if you are so righteous. Glenn was ambitous and meant well and did everything he could including borrowing against his own properties to pay the investors back most of their money at his own expense. Get over it and leave him and his family alone.
The builders usually have their own appraisers that come with in-house financing. That's one possibility of how it could appraise.
Or, I suppose if the builder put in a ton of upgrades, like crown molding, granite counters, a pool with a spa and fountain, tile roof, 3+ car garage, real wood cabinets instead of pressed wood laminate, etc., it's possible to make up the difference. If this is the case though, it would be my guess that someone bought one at the pre-construction point, and ordered all the upgrades, then backed out when the market dropped, leaving the builder to sell the home.
This is all speculation. I have to agree with you that a $200,000 difference in the same floor plan sounds like a huge reach. You could always call the builder and ask why there's such a huge difference?
To break it down, the old SOH Act gave home owner's with the Homestead Exemption a $25,000 deduction off the top of their home's taxable value, plus their taxes could not be raised more than 3% per year. So here's the scenario. Let's say you had the Homestead Exemption on your house and lived there for 10 years, with your taxes never being raised more than 3% per year. But suddenly real estate values started skyrocketing. This doesn't affect you much because your home's taxable value cannot be raised to the new value. But if the neighbor across the street, with the same floor plan, was a seasonal resident (and could not claim the Homestead Exemption), their assessed value would continually raise to the current values. After a few years, you see the drastic differences in the assessed values.
Does this answer your question?
here today, gone tomorrow sort of thing