The Santa Clara County Assessor, Larry Stone, has determined that the value of Yuri Milner's 25,545 square foot mansion in Los Altos Hills is worth $50,270,000 - almost exactly half of the price reportedly paid in Spring 2011. Stone is quoted as saying "He paid more than fair market value." I disagree.
How does one determine fair market value on a home that is essentially...unique. While there are plenty of homes across the state with valuations in a similar price range, because the properties are in different markets and geographies it would be nearly impossible to establish an accurate valuation using conventional appraisal methods. The valuation of a unique product in a market by itself is exactly what the buyer will pay for it - nothing less.
There are so many factors that go into evaluating the market value of a home of this type, beyond the typical parameters. The materials and craftsmanship far outstrip the typical measures used in other luxury homes. It's an engineering marvel worthy of whatever price was paid.
The property taxes on the home, based on the $100 million purchase price, would have been $1.2 million and a portion of that would go to local schools. Districts are all in need of cash so the reduction will be a blow to the Los Alos School District.