Trump Mar-a-Lago Valuation Saga: A New York judge found that Trump inflated Mar-a-Lago’s value by 2,300%. The county tax assessor’s value being used as the basis for this finding, part of a more significant decision finding Trump and his adult sons guilty of fraud, is odd.
Judge Engoron stated that the Palm Beach County Assessor valued Mar-a-Lago at $18-27.6 million from 2011 to 2021. Trump valued the estate at $426.5 million to $612 million, 2,300% higher than the appraiser’s estimate.
It’s important to note that a tax appraiser’s valuation may differ from the market value of a property. Real estate experts know comparing similarities is different from comparing apples to apples. The gap between appraised and market prices widens significantly for extraordinary homes like Mar-a-Lago.
Eli Beracha of Florida International University says, “Appraisal values and market values differ, especially for unique properties.”
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Dina Goldentayer, Executive Director of Sales at Douglas Elliman in South Florida, agrees. She claims tax assessor assessments are seldom used to determine a property’s actual market value.
Jonathan Miller, CEO of Miller Samuel Inc., says tax estimates and market values differ.
Melissa Cintron, Partner at Harrington Ocko & Monk, believes Mar-a-Lago is valued at over $28 million, considering upgrades and market studies.
Determining Mar-a-Lago’s value remains challenging, given its uniqueness as a social club with restrictions.
Besides Mar-a-Lago, the verdict includes 40 Wall Street, the Seven Springs Estate, and a golf course in Scotland. It connects Trump to other cases of increasing housing prices. Trump allegedly tripled the size of his Trump Tower apartment, resulting in a $114 million to $207 million overvaluation.
Despite the controversy surrounding Mar-a-Lago’s assessment and its connection to property valuation practices, Trump and his lawyers strongly disagree with the decision.
The court odyssey continues, highlighting the complexity of property valuation and its impact on real estate oligarchies.