<p>mamochka: the colleges can stick the price you paid for the house and the year you bought it (both of which are Profile questions) into the federal housing index multiplier to check if the market value you are claiming your home is, is reasonable or in fantasyland.</p>
<p>This from the Yahoo College Savings Center:</p>
<p>"Some of these institutions have elected to cap the value of your home at three times the parents' total yearly income. In other words, at these schools if you earned $50,000 last year, the value of your home (for assessment purposes) will be considered to be no more than $150,000 - even if you own a home worth $200,000. Which schools will be capping home value this year? At present there is no list available. However, the schools most likely to cap home value are the highly selective colleges that have large amounts of their own money to award, and that meet a high percentage of need. One of the questions you may want to ask the FAO at any school you are considering is which of the three ways they will treat home value - not at all, at three times income, or at full value."</p>
<p>From my son's college:</p>
<p>"Real estate will rarely be accepted at a value lower than purchase price and national real estate appreciation multipliers are often used to project market value."</p>