Forcing people to pay property tax on an inflated valuation of their house or face eviction sounds like a terrible system, actually. If you offered to buy my house for a number that I agreed was a perfectly fair market value that I didn't expect to be able to beat on the open market, I would say no immediately. You'd have to offer something like 50% over what I'd expect to get for me to seriously consider the offer.
It is very common to have goods where the price a buyer is willing to pay is smaller than the price a seller is willing to accept, and in a free market that simply results in no transaction happening. Forcing the transaction to happen is always going to make at least one side of the deal unhappy.
It is very common to have goods where the price a buyer is willing to pay is smaller than the price a seller is willing to accept, and in a free market that simply results in no transaction happening. Forcing the transaction to happen is always going to make at least one side of the deal unhappy.