Depending on where you live and how properties are assessed that could be completely normal. In Illinois, for example, assessed values are not even close to market value--they use some convoluted math equations to reach their assessments and then more convoluted math to figure the percentage for the taxes.(which are outrageous no matter how they figure it!!) But in Kentucky an assessment is the actual price of the home(or very close to) and then taxes are just a straight percentage of that figure. That said, you should check with the assessors office to see when the property was last assessed and if that assessment included any special discounts for the previous owner--you may be in for a shock on what your taxes will actually be.