Can I use my recent purchase price as evidence?

Your own recent purchase price is powerful evidence — but it cuts both ways, and how you use it depends on which side of the assessment it falls.

Why it's strong evidence. A recent arm's-length sale — an open-market transaction between unrelated parties, each acting in their own interest — is widely regarded as one of the best indicators of a property's market value, especially when it closed near the valuation (lien) date. The IAAO Standard on Mass Appraisal of Real Property defines market value by exactly this arm's-length, open-market standard, and assessors give recent arm's-length sales heavy weight.

When it helps you most. If you bought the home for less than its assessed value, your closing statement is direct, hard-to-rebut proof that the assessment is too high. Bring the executed contract, the settlement/closing statement, and the deed. This is one of the cleanest cases a homeowner can make.

When it can hurt you. If you paid more than the assessment, the same logic favors the assessor — your purchase price becomes evidence that the value should be raised (or at least not lowered). In that situation, don't lead with your price; build the case on comparable sales and any factual record errors instead. In Texas, even a high purchase price doesn't foreclose relief: the equal-and-uniform argument under Tex. Tax Code §41.43(b)(3) can bring your value below your purchase price if similar properties are appraised lower.

What must be true for it to count:

• Arm's-length — not a sale between family, a foreclosure, a short sale, or a transfer into a trust/LLC. Non-arm's-length prices are discounted.
• Recent — closed near the lien date; a sale a few years old needs a time adjustment.
• Documented — the closing disclosure / settlement statement is your proof.

Bottom line: a recent arm's-length purchase below your assessment is among the best evidence you can file; if you paid above the assessment, switch strategies to comps and record corrections.