More Madison homes sold for below the assessed value in 2009

Our analysis of data from the South Central Wisconsin MLS shows 58% of the Madison homes that sold in 2009 ended up selling for under the 2009 assessed value. This marks the first year during the new millennium that more than 50% of all Madison homes sold for an amount less than the assessment. (Note: this analysis excludes condos, as well as new construction houses that did not reach their full assessment prior to sale).

Here's how the data has trended over the last 10 years.

The trend toward more homes selling for under the assessment is no big surprise. But these stats from 2009 may surprise you:

• Only 40% of all Madison homes sold in 2009 ended up selling for a price that was within $10,000 (plus or minus) of the assessed value.
• Thirty-seven percent of all Madison homes sold for a price that was more than $10,000 under the assessment.
• Twenty-three percent of all Madison homes sold for a price that was more than $10,000 above the assessment.

In other words the majority of all home sales occurred at a price point that was either well above or well below the assessed value.

The data drives a home a point that we have been making for the last several years: It is the market that determines a home's true value, not the city assessor. 

For more information, please see our articles Market Value vs Assessed Value and Pricing Your Home. You'll find both on the selling real estate page at DaneCountyMarket.com. 

Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com