Madison Wisconsin Homes and Real Estate: Your Assessment as a Factor in Negotiations

Thursday, October 27, 2011

Your Assessment as a Factor in Negotiations

Is your assessed value equal to the price you could reasonably expect to get on the market today? Good question. The table below shows recent sales of Madison west side, single family homes, with sale prices from $250,000 to $350,000, sold in the third quarter this year. Looks like on average owners priced around 106% of assessed value, typically reduced to a price closer to assessment, and accepted offers just slightly above assessment.

For what it's worth, and maybe this is too small of a sample, maybe the slim gap between sale price and assessment is another indicator that the pressure is on pushing or holding price down. Buyers are using assessment as an argument in their favor. Competition for the property will trump opinion on assessment--if you have more than one buyer, you have competition; scratch that if both buyers are working from the same playbook.

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If Not Sold in the First 30 Days, Successful Sellers Conceded The Price

Through Mid-September, thirty seven percent (37%) of 126 home owners who sold in 2010 sold without making a single price concession. They typically attracted a buyer within 40 days of going on to the market. These successful owners conceded little on price as they sold for about 97%-98% of asking price.

Those who counted time on the market by months or even quarters eventually sold for an average of 91% of their initial asking price. Price reductions improved their success opportunity. Once their price was reduced to a price favorable to a buyer, the time on the market was short--about 34 days from last price change to accepted offer.

See September 20, Buyer Enticing Pricing

Disclosure

The source of data: South Central WI MLS Type of data: Single family homes and maybe condos and maybe other Areas: Madison and other areas such as McFarland, Shorewood Hills, Middleton, Maple Bluff, Oregon, DeForest, Cross Plains, Dane County, Fitchburg, Verona, did I say Middleton? Dates covered in these blog posts: January 2010 and continuing.

All comments are the relatively well thought out opinions of Tom Meyer. Those opinions are not necessarily shared by Restaino & Associates, other brokers, or the national, local, or state associations of Realtors... in fact, they may be significantly different.