Market Value versus Assessed Value in Madison (2010 UPDATE)

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If you’ve read our article, Pricing your Home, you know a home’s assessed value is not a reliable indicator of true market value. Using the city of Madison as an example, we showed that just under 6 out of every 10 transactions result in a sales price under the assessed value. This was not the case in previous years. From the graph below you’ll see only 1 out of every 10 Madison homes sold for below the assessed value from the years 2000 through 2005. That number jumped to roughly 3 out of every 10 in 2006, 4 in 10 in 2007, 5 in 10 in 2008, and 6 in 10 in 2009. What was once an unwritten rule no longer applies. It used to be that you could count on a Madison home selling for more than the assessed value. Those homes that didn't sell for the assessed value were generally fixer-uppers or homes that belonged to distressed sellers. The market is different now. And many people are finding the process of pricing their home to be a challenging exercise. This is understandable when you look back at how the "old rule" used to apply. The "new rule" dictates that you should price your home by doing your homework and viewing your home through a buyer's eyes. Read our article, Pricing your Home, for some tips on finding the right price point for your home. If you have any pricing questions about your own home, feel free to contact us. We'll be happy to learn more about your specific situation and share our suggestions. Related articles Pricing your home How we help you sell About us This information is provided courtesy of Dan Miller and Shawn Kriewaldt of Keller Williams Realty and DaneCountyMarket.com. For more information, please contact Dan at 608-852-7071 (danielmiller@kw.com) or Shawn at 608-212-5743 (shawnkriewaldt@kw.com). Don't forget: if you're buying or selling, whether your timeline is 3 months or 3 years, we can help. Track the market and search for Real Estate You can receive our articles and monthly updates via email. Just go to our newsletter sign-up, enter your email address, and select your topic(s) of interest. Our real estate search tools are easy-to-use. Learn how you can simplify your search by saving your search settings, receiving email updates, and tracking your own list of "favorite" properties.  Search for South Central Wisconsin Real Estate Now Email this article to a friend: Email To: Email From: Name of Sender: Optional Message: Please enter the numbers/characters in the picture for verification *  Back