Why is the house I live in so expensive? It has an upstairs, downstairs, chandeliers, a master bedroom, three bathrooms, four bedrooms.. One extra room for visitors only, and a kitchen.

Because it sounds like a really big house Maxine and the upkeep for it like electricity and water would be pretty expensive.As well as the size of a house, other factors such as having two storeys and the location itself would make a house more desirable and therefore more expensive.More square footage = more money.

They price by square footage/  floor space (doesn't matter if the house is solid gold and encrusted with precious stone) and tax by it also. Also location location location. My house value jumped by 24 thousand dollars in one year even though I did not do anything to it,like adding a room or improvements simply because neighbors were allowed to build mc mansions next door. : ). But do to the economy the house then devalued by that same amount and the taxes dropped back where they should have been in the first place after 10000 irate  taxpayers complained about the tax collectors valuation of their homes to increase tax revenue for a failing local economy. The new housing complex across from me is still empty becasue no one is buying homes rights now. The development was then  bought as a whole by a investor from florida though and now he is selling the homes for 20-30 percent less than advertised so people will take them off his hands. : ).and round and round it goes.