Overvaluing really isn’t an issue causing the housing crisis.
It is more supply and demand as the real cause. when interest rates were low, investors got involved in buying up homes leading to property values rising even more.
From a property tax perspective there’s so many variables that contribute to the value of a house that assessment values are based more on average of a neighborhood area instead of on a house by house basis. Unless the house is sold.
A houses true value is really only known when a sale occurs in the vast majority of cases as the true value is what someone else is willing to pay.
The last home we lived in was 1200 sqft and assessed at 135k if I remember correctly. We sold at around 230k when our neighborhood caught up to rising property values in the city. New owners stayed for a year adding only a privacy fence and sold for 330k.
While I think those sale prices are insane, someone else saw the value and agreed to the price.
I think you’re adding more layers to this than what is actually required.
To move money from a to b. Not why it needs to be moved.
To pay a cashier you need to get your money/payment first. That’s the source. Handing it to the cashier is the destination.
Everything else you’ve mentioned is a why and has no bearing on the movement of payment.
That’s my…O2 anyway