You will have to justify the market value against other homes sold similar to yours. If you buy it for a $1 and other homes similar are selling for $1,000,000 then your home is valued at $1,000,000 not $1. unless all the homes in the area foreclosures or over 50% are selling in distress, you will not be able to use other distressed values. There is a list of non usable deed transactions in determining value. http://www.state.nj.us/treasury/taxation/pdf/lpt/guidlines33.pdf
There are other factors to adjust value. But you will need to wait until Feb to fight your taxes.
Search Short Sales and foeclosure Deals at www.BuyNjShortSales.com